Losses to the state blamed on counterfeit goods continue to increase each year, says the Indonesian Anti-Counterfeiting Society (MIAP), with over-the-counter drugs the most widely imitated.
MIAP members include Pfizer Indonesia, Unilever, Procter & Gamble Indonesia, International Pharmaceutical Manufacturers Group and BP Indonesia.
MIAP chairwoman Widyaretna Buenastuti said last week that based on a study conducted by the MIAP and the University of Indonesia’s Institute for Economic and Social Research (LPEM-UI), counterfeit products in the footwear, textile, cigarette and pesticide sectors from 2002 to 2005 caused Rp 4.4 trillion (US$459 billion at the time) in losses to the state.
“This number increased significantly in 2009,” she said, but did not give a figure.
She added the MIAP and LPEM-UI were carrying out a similar study for the 2006-2009 period, with the results expected early next year.
In the earlier survey, drugs were the most counterfeited product, causing Rp 607 billion in state losses.
MIAP secretary-general Justisia Perdana Kusumah told The Jakarta Post that over-the-counter drugs were still “sexy to be counterfeited” due to their vast retail market and high margin. “But counterfeit drugs also mean losses for the companies and threaten consumers’ health,” he said, adding they could tarnish the brand name.
Widyaretna said the MIAP had once found a drug that was supposed to heal cuts, but which turned out to contain only water.
She added pharmaceutical companies were very concerned about the counterfeiting of these kinds of drugs because it could be dangerous for consumers.
“We found the most counterfeited drugs were cholesterol-lowering drugs, drugs for influenza, hypertension and slimming — basically the drugs a lot of people use daily.”
Widyaretna urged the government to tighten regulations on drug circulation.
The MIAP has also recommended that companies review their supply chains should they find indications of their products being counterfeited.
“If they import their products, they should rethink their supply chains, starting from the ports down to the end users. If they produce here, they should review from the production,” Widyaretna said.
Last Tuesday, the MIAP launched a website where consumers can report cases of counterfeit products.
“The MIAP has long received reports of counterfeit products from consumers, and we always hand over these reports to the respective companies, who then decide whether to report to the police.”
In the first six months of the year, eight reports of counterfeiting were filed with the police, data from the National Police shows. In 2008, the police recorded 18 reports, down from the 83 reported in 2007.
Widyaretna added the MIAP was still focusing on reports concerning its member companies, but would not turn down those concerning other companies.
Other MIAP members are Epson Indonesia, Oakley Indonesia, Louis Vuitton Moet Hennesey, Nestlé Indonesia, Aqua Danone, Shell Indonesia, Bintang Toedjoe and Quiksilver Indonesia. (adh)
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