JAKARTA (TheInsiderStories) - Indonesia State owned pharmaceutical company PT Indofarma Tbk (IDX: INAF) is seeking to widen its export markets eight countries in Asia, besides Afghanistan and Iraq. The two countries have contributed Rp25 billion to Indofarma’s export so far.
This year, the company sets an export target of Rp30 billion ($2.27 million) from last year worth Rp25 billion. Indofarma is now in the process of obtaining licenses from several countries’ regulators before entering these new markets.
“Currently, our Asia’s biggest export markets are Afghanistan and Iraq. We are still studying [the export process]. [We expect] to have 12 new export destination countries in 2017 with export values of Rp50 billion,” CEO of Indofarma Arif Budiman told reporters at the Jakarta Stock Exchange.
Arief explained that the majority of exported drugs are generic drugs. In Afghanistan, demands for cough syrup remains the highest.
He added the plan is aimed at meeting this year’s sales and profit targets. Indofarma targets boost this year’s profit by 357 percent to Rp30 billion from 2015’s net profit of Rp6.56 billion. In terms of revenues, Indofarma sets target of Rp1.9 trillion for 2016.
Indofarma is also targeting to book $2 million worth of contracts per year. As of today, the company had signed cooperation agreements with several countries, with sales contracts’ worth total of $300,000.
In addition, the company is currently investing in developing seven new products, including sterilization drug, producing sephaloscorin, herbal, pilot skill facility and renovating its micro lab with total investment of Rp150 billion. The projects will be funded by three banks, he said. This year, the company expects production capacity to reach 60 percent and increase to 80 percent next year, with 4 billion tablets of output in 2016. (*)