‘Gotong Royong’ Vaccination Considered Too Expensive

Costs considered too high and limited supplies of Covid-19 vaccines mean all business entities can participate in the gotong royong (mutual cooperation) vaccination effort.

BIRO PERS SEKRETARIAT PRESIDEN/KRIS

President Joko Widodo (standing) observes the implementation of mutual aid vaccination at PT Unilever Indonesia\'s factory, Jababeka Industrial Estate, Cikarang, West Java, Tuesday (18/5/2021)

JAKARTA, KOMPAS — The government has announced the prices for its gotong royong Covid-19 vaccination drive. However, the costs are considered too high, and the government is expected to be more transparent about its calculation, specifically the profits included.

Public policy observer Agus Pambagio said on Tuesday (18/5/2021) that the prices for the gotong royong vaccine must indeed be fixed, so that the costs in the market can be controlled.

"However, the question is, with the prices that have been set now, what is the basic price of the vaccine? Then, does the amount of profit that is also fixed include the operational costs for the procurement of the vaccines? This information must be disclosed in detail. If the profit does not include the operational costs, the prices that have been set will be too high,” he said.

The question is, with the prices that have been set now, what is the basic price of the vaccine?

Agus said openness on the part of the government in setting the vaccine prices is very much needed. Information must be made widely available so that people can better understand the various Covid-19 vaccination programs that are currently being carried out, and it is important to emphasize that the public is entitled to the vaccines for free.

Health Ministry Decree No. 4643 of 2021 sets the purchase price of vaccines for the gotong royong program at Rp 321,660 per dose and the price ceiling for the vaccination service charge is Rp 117,910 per dose. Those prices include 20 percent profit as well as distribution costs that will be incurred by PT Bio Farma, and a 15 percent profit for health facilities that provide the vaccination services.

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> Gotong Royong Vaccination Program

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The Health Ministry’s spokesperson for Covid-19 vaccination, Siti Nadia Tarmizi, said vaccine prices and service rates had been determinated in consultation with various parties and the profit was in accordance with the regulations for the procurement of goods and services.

"The gotong royong vaccination is not an obligation, so it can adjust to the conditions of each company. The responsibility of determining which employees get vaccinated has also been handed over to each company according to their policies," she said.

KOMPAS/TOTOK WIJAYANTO

Employees of PT Indah Kiat Pulp & Paper Tbk. queued to get Sinopharm vaccine injection in the Gotong Royong vaccination program in South Tangerang, Banten, Tuesday (18/5/2021). As many as 4,000 employees of the company are participating in the mutual cooperation vaccination program launched by the government that day.

Nadia also emphasized that the costs of the gotong royong vaccination was borne by the companies, so it was not allowed to collect any fees from employees. Employees asked for fees by their companies could report the matter to the Indonesian Chamber of Commerce and Industry (Kadin).

Financing

The difficult financial state of companies in industries that have yet to recover, as well as the limited supply of Covid-19 vaccines for the gotong royong program, have kept some business entities from signing up to this program. Business entities unable to conduct inoculation under the gotong royong program need to find other solutions.

Also read: Private Vaccinations Carried Out alongside Government’s Program

Zaldy Ilham Masita of the board of experts of the Indonesian Logistics Association said the price of the gotong royong vaccine of Rp 879,140 for two doses per person was high and a fair price would be Rp 500,000. With this fair price, BPJS Ketenagakerjaan (Workers Social Security Agency) would certainly be able to more freely pay for the vaccination of workers.

"The government should be able to subsidize several price components, such as vaccinator fees and import duties, relax the value added tax of vaccines and not set a profit of 20 percent," he said.

KOMPAS/TOTOK WIJAYANTO

The medical officer prepares the Sinopharm vaccine which will be given to employees of PT Indah Kiat Pulp & Paper Tbk. in the Gotong Royong vaccination program in South Tangerang, Banten, Tuesday (18/5/2021).

To overcome this financing obstacle, several entrepreneurs have proposed solutions. For example, through the provision of loan assistance to companies that are part of the supply chain ecosystem, free vaccination for front-line sectors, and the use of the BPJS Ketenagakerjaan scheme.

"To overcome the financial difficulties of small companies, big companies are ready to help. One way to do so is by lending funds where the repayment can be done in installments or in other ways that are mutually agreed upon," said Abdul Sobur, the chairman of the Presidium of the Indonesian Furniture and Handicraft Industry Association.

Kadin deputy chairman for industry Johnny Darmawan said that, from the start, Kadin had emphasized that the gotong royong vaccination was a paid program. Therefore, small-scale business entities generally did not want to register and preferred to wait for the free vaccination program from the government.

Equitable distribution

The head of the Indonesian Employers Association (Apindo) for Riau Islands, Cahya, said the gotong royong vaccine program was considered to favor big companies based in Java. The government has been urged to ensure the availability of vaccines for small companies outside Java.

"The gotong royong vaccination registration mechanism through Kadin is not easy. It is a pity for small companies with only some dozens of employees. For us, the gotong royong vaccination program is like a heavenly promise that is not clear as to when it will come true," said Cahya.

Also read: AstraZeneca Vaccinations Halted Temporarily

The executive director of the Institute of Development for Economics and Finance, Tauhid Ahmad, said Tuesday that, to accelerate the economic recovery, workers in small and medium-scale industries and businesses affected by Covid-19 who play a role in driving the economy needed to be vaccinated.

President Joko Widodo witnessed live online, Tuesday, how 18 companies registered for the gotong royong vaccination started Covid-19 inoculation of their employees. ( TAN/AIK/ HEN/ OSA/ NDU/ RTG/ MEL/AGE)

This article was translated by Hyginus Hardoyo.