PT Kimia Farma Tbk (IDX:KAEF) granted loans with total amount of Rp2.35 trillion or US$167.85 million from four domestic banks - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian pharmaceutical company, PT Kimia Farma Tbk (IDX:KAEF) granted loans with total amount of Rp2.35 trillion or US$167.85 million from four domestic banks, said the company on Thursday (12/26). The loans will be used for working capital.

State-owned lender, PT Bank Mandiri Tbk (IDX: BMRI) give loans with with values Rp500 billion and interest rate of 8.4 percent a year. Then, PT Bank Negara Indonesia Tbk (IDX: BBNI) disbursed loans worth of Rp500 billion with coupon rate 8.5 percent per annum. And, PT Bank Maybank Indonesia Tbk (IDX: BNII) and PT BRI Syariah Tbk (IDX:BRIS) which gave loan Rp850 billion and Rp500 billion, respectively.

Part of the loans, said the manufacturer, wiil be distributed to its units. There are PT Kimia Farma Apotek, PT Kimia Farma Trading and Distributions, PT Sinkrona Indonesia Lestari, PT Kimia Farma Sungwun Pharmacopia, PT Kimia Farma Diagnostika and newly subsidiaries, PT Phapros Tbk (IDX: PEHA).

Earlier, the company plans to conduct right issue with targeting funds Rp3 trillion. The company will release 1.57 billion of share or 22.14 percent of total share. The government confirmed that they will not absorb the right issue as well as PT Bio Farma as the holding company.

The government has completed the formation of a pharmaceutical holding with Bio Farma as a lead by transferred Kimia Farma and PT Indofarma Tbk (IDX: INAF) shares to Bio Farma.

CEO of Bio Farma, Honesti Basyir, said with the formation of this holding, the producer will focus on producing medicines, Indofarma on herbal medicines and medical equipment, and Bio Farma on vaccines.

Previously, Kimia Farma signed a sale and purchase agreement to buy 56.77 percent or 476.90 million shares of  Phapros from PT Rajawali Nusantara Indonesia. The medicine producer said, the purpose of purchasing all of these shares is to rise the company‘ market shares to six percent and enrich the drug production portfolio in Phapros.

This transaction also aims to increase the growth of assets, profitability, the efficiency of marketing costs, research and marketing development by utilizing Phapros’ distribution channel.

Since last year, Kimia Farma has planned to acquire a pharmaceutical company and three hospitals. The company has allocated Rp2.2 trillion for the acquisition.

In February 2018, the company bought 60 percent shares of Daiwa Medical Ltd. Co. which has a pharmaceutical network in Saudi Arabia with worth Rp139 billion. This action is part of the company’ planned to expand the market to the Middle East and Africa.

Kimia Farma aimed to build 90 retail outlets and open a drug factory in Saudi Arabia in two years period. In Indonesia, the producer plans to add production facilities and developed ethical drug factories and herbal medicine factories in Banjaran, West Java.

The total investment for the construction of the plant reaches Rp1.1 trillion. In Cikarang, Bekasi, KAEF also build the new factory to produce raw materials for medicine, cosmetics and food supplements with total investment Rp132.5 billion.

This year, Kimia Farma targets a double-digit revenue growth in line with the company’ strategic which focused on transforming integrated health service retailers from pharmacies, clinics, to diagnostic laboratories.

In addition, the manufacturer also focuses on optimizing supply chains or distribution. Major business expansion also be continued, including by acquiring a company in the pharmaceutical sector, medical devices, including hospitals.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com