Small Businesses wait for Govt Vaccinations

The government provides two options for small and medium industries for the vaccination program. The first is to participate in the gotong royong vaccination scheme or by participating the government’s vaccination.

KOMPAS/RADITYA HELABUMI

The vaccinator injects the first dose of the Covid-19 vaccine into one of the vaccination participants at the Gotong Royong vaccination center of the Indonesian Chamber of Commerce and Industry (Kadin) at Senayan Park Mall, Jakarta, Wednesday (19/5/2021).

JAKARTA – KOMPAS, Business entities, especially small and medium enterprises, have complained about the high cost of the private vaccination scheme called the gotong royong (mutual cooperation) program. The government, however, has yet to evaluate the set price.

State-Owned Enterprises (SOEs) Minister Erick Thohir noted that the gotong royong vaccination program was voluntary, meaning companies that wish to participate in the private vaccination program and are willing to pay for the vaccination of their employees are welcome to do so at the set price, which is Rp 879,140.

The amount covers the price of the vaccine at Rp 321,660 per dose and the maximum administration and service fee at Rp 117,910 per dose. The price includes a 20 percent profit margin for the purchase of vaccines and a 15 percent profit margin for service and excluding value added tax (VAT) and income tax.

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> ‘Gotong Royong’ Vaccination Considered Too Expensive

> Gotong Royong Vaccination Program

There is an option to wait for the free vaccination program carried out by the government for small and medium industries that cannot afford the vaccines as their businesses are affected by the pandemic. “For small and medium enterprises, we provide two options: to participate in the gotong royong vaccination scheme or the government’s vaccination program,” Erick said at a press conference for the gotong royong vaccination program in Jakarta on Wednesday (19/5/2021).

The still fragile and uneven economic recovery, coupled with the limited supply of Covid-19 vaccines, means that not all business entities can participate in the gotong royong vaccination effort. A number of industries that cannot afford the cost, therefore, have asked for financial relief or for the price of the vaccines to be reevaluated.

Zaldy Ilham Masita of the board of experts of the Indonesian Logistics Association (ALI), for example, has asked the government to subsidize several price components and eliminate the 20 percent profit margin. Companies have also asked for assistance through loans for those that cannot afford the price, free vaccines for front-line sectors as well as the use of the Workers Social Security Agency (BPJS Ketenagakerjaan) scheme to cover the inoculation costs (Kompas, 19/5/2021).

KOMPAS/RADITYA HELABUMI

The vaccinator shows the Sinopharm vaccine bottle used for Covid-19 vaccination at the Gotong Royong vaccination center of the Indonesian Chamber of Commerce and Industry (Kadin) at Senayan Park Mall, Jakarta, Wednesday (19/5/2021).

Transparency

On the other hand, the government was also asked to be more transparent and openly disclose the details of the pricing calculation for the vaccine made by China’s state-owned pharmaceutical firm Sinopharm, which is used in the gotong royong vaccination program. According to the head of the University of Indonesia’s Center for Health Economics and Policy Studies, Hasbullah Thabrany, the price set for the gotong royong vaccination program must be in accordance with the results of deliberations with employers\' organizations and established according to the average capacity of companies in Indonesia.

“The goal of accelerating the country’s vaccination drive through the [gotong royong] program cannot be achieved if the price is too high. The pricing must be explained publicly, including the details on the amount of profit gained by the vaccine supplier,” Hasbullah said.

The government also needs to facilitate companies that wish to participate in the gotong royong vaccination program but are hindered by limited funding. “Such a condition can be solved through subsidies from larger companies or the government,” he said.

Also read:

> Private Vaccinations Carried Out alongside Government’s Program

> Gearing up for Gotong Royong Vaccination Program

Minister Erick emphasized that the government had no intention of commercializing the vaccines, yet he did not explain in detail the basis of the vaccine pricing and profit margin. “Do not think that the government is seeking a [profit] margin? The government has spent Rp 77 trillion for the procurement of the free vaccines, which is one of the largest amounts in the world,” he said.

Vaccine pricing is established by the government along with the Development Finance Comptroller (BPKP). “It [the price] includes a selling price, which comprises procurement and distribution prices. We are very transparent. Since the beginning of the Covid-19 [pandemic], SOEs have been consistently providing public services,” Erick said.

KOMPAS/TOTOK WIJAYANTO

Employees of PT Indah Kiat Pulp & Paper Tbk. filling in the data before getting the Sinopharm vaccine injection in the gotong royong vaccination program in South Tangerang, Banten, Tuesday (18/5/2021).

Separately, the Health Ministry’s spokeswoman for the vaccination program, Siti Nadia Tarmizi, said the government had been open to explain the cost of the gotong royong vaccination program. The details of pricing components, she said, are presented in the relevant regulation.

“The profit margin is set according to the rules for the procurement of goods and services, particularly the HPS [the self-estimated price to calculate the cost of goods and services]. Profit margin is necessary as those who procure the vaccines need funding,” she said.

The price was established through a discussion and coordination of various parties, including entrepreneurs. All costs of the gotong royong vaccination program are borne by the participating companies.

Free of charge

Indonesian Chamber of Commerce and Industry (Kadin) chairman Rosan Roeslani said that all vaccination programs are free of charge for employees. Companies are prohibited from commercializing vaccines and collecting fees from their employees.

Hopefully, out participation will accelerate the realization of herd immunity.

Indonesian Employers Association (Apindo) chairman Hariyadi Sukamdani, however, admitted that a small number of companies were paying for the vaccines by sharing the costs with its employees. According to Kadin deputy chairman Johnny Darmawan, companies are prohibited from collecting fees from employees, but there had been no sanction if one violates the prohibition.

Meanwhile, 2,000 employees of Astra Group, through PT Astra Otoparts Tbk and PT United Tractors Tbk have been administered vaccines through PT Kimia Farma Tbk for the gotong royong vaccination scheme. This is part of the initial stage of inoculating more than 300,000 Astra Group employees and their families.

“Hopefully, out participation will accelerate the realization of herd immunity,” said Astra president director Djony Bunarto Tjondro in a press release.

This article was translated by Camilia Adianti