ABSTRACT
The big echoes of the Health Social Security Organization program initially gave hope to the pharmaceutical industry to increase sales. The program is believed to increase demands on pharmaceutical products. The drug’s demand is actually increasing and types of drugs needed are also more varied. However during 2015-2017, pharmaceutical issuers grew slower and its stock prices declined. This research includes library research; the research method is mixed method research category with the procedure of data collecting activities in a span period of time (2015-2017) and the final presentation technique descriptively. Based on the financial statements of pharmaceutical companies listed on the Indonesia Stock Exchange, during the period 2015-2017, the increase in drug sales actually eroded its profit margin. For example, as the largest player in the pharmaceutical sector, Kimia Farma’s profit only grew 2.2 percent in 2016. In fact, in 2015 it grew 13.15 percent and in 2014 grew 9.36 percent. So, while it is still profitable, the growth of the profits seems to be slowing down. This phenomenon is interesting to be studied further, by analyzing the influence of government health expenditure and Health Social Security Organization on pharmaceutical sector performance in Indonesia Stock Exchange period 2015-2017. The national health insurance program will still be a magnet for pharmaceutical issuers. Population growth, increasing government budgets to pay the contributions of the poor and improving public incomes can be a supplement to corporations engaged in the sector. Different characteristic of government procurement conditioned pharmaceutical companies must have sufficient liquidity and working capital because they have to import raw materials, production line investment (increase production capacity), distribution costs; that is still quite expensive in Indonesia, and the cost of money that must be considered as it can undermine the company’s net profit.
