THE NUMBER OF TRADITIONAL MEDICINE STORES KEEP DECREASING

Jakarta - The shrinking of traditional pharmacy or herbal store keeps continuing and 84 outlets are evicted during 2006. On the other hand, modern chain pharmacy keeps increasing.

From the survey done by Nielsen Indonesia, it is revealed that the shrinking of traditional pharmacy and herbal store in Indonesia is more significant IN2005 compared to 2003. There were 1036 traditional medicine stores and pharmacy closed during that period.

“Even though there is increase in number, we predict that modern chain pharmacy does not dominate the market,” said Yongky Surya Susilo, as the Director of Retailer and Business Development Nielsen Indonesia to Bisnis, Wednesday night.

Yongky explained that traditional medicine pharmacy and store do not need to worry about the number of modern chain pharmacy that keeps increasing, because traditional medicine pharmacy has its own customers.

However, to anticipate the competition, it is expected that traditional medicine pharmacy to keep building customer’s trust by not selling counterfeit medicine.

The power of modern pharmacy is having an image not to sell counterfeit medicine. Therefore, it can boost outlet expansion, he said, because besides of creating comfortable store, modern pharmacy also creating image of a pharmacy which sell only safe and original medicine.

“There is belief that there is no counterfeit medicine in modern pharmacy,” said Yongky.

He predicted that the number of modern chain pharmacy will keep increasing by 20% per year.

Keeps Dominating

Even though it is predicted that in 2008 there will be increasing number of chain pharmacy by 20% each year, Yongky is optimistic that traditional pharmacy keeps dominating.

The highest outlet numbers of modern chain pharmacy in Indonesia during 2006 is Century (128 outlets), and Guardian (134 outlets). The other brands operated in Indonesia are Boston (36 outlets), Shop In (4 outlets), and Watsons (4 outlets)

During 2006, the most active pharmacy that expands its outlets was Guardian, which opened 33 outlets last year, while Century opened 10 outlets last year.

Previously, Gideon Hartono, the chairman of Apotek K-24, pushed the government to punish pharmacy or drugs store which selling counterfeit medicine, and demanded the proposal of regulations to give dead punishment for the perpetrator.

That counterfeit medicine, he revealed, is sold with cheaper price up to 40% from the original price. That much of difference is impossible to happen even though competition between pharmacy and drugstore is quite tight. Price war can be only tolerated with the difference range between 5% to 10%.

The center of counterfeit medicinedistribution, Gideon explained, is believed to be known by most people including government and police officer. If government are firm in taking decision to eradicate the distribution of counterfeit medicine, it is obvious that there will be no counterfeit medicine seller straying around.

Meanwhile, he also revealed that counterfeit medicine consumed cause material loss because of the medicine does not give healing effect and it can even be deadly dangerous (linda.silitonga@bisnis.co.id)

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