PT Kimia Farma Tbk (IDX: KAEF) collaborates with South Korean firm, Sungwun Pharmacopia Co. Ltd., plans to develop a the raw material production facility for medicine in Cikarang, Bekasi, West Java - Photo by the Company

JAKARTA (TheInsiderStories) – The pharmaceutical company, PT Kimia Farma Tbk (IDX: KAEF) collaborates with South Korean firm, Sungwun Pharmacopia Co. Ltd., plans to develop a the raw material production facility for medicine in Cikarang, Bekasi, West Java, said the CEO today. Currently, the drug-maker had produced nine items of raw materials.

According to Verdi Budidarmo, the development was part of the pharmaceutical firm to reduce the dependence on the import of raw materials from. The target is that up to 2024, the raw material imports are expected to drop by 23 percent from currently more than 95 percent of the ingredients.

To support the business expansion, he said, the subsidiary of state firm, PT Bio Farma, prepared capital expenditure around Rp500 billion (US$36 million). The sister company of PT Indofarma Tbk (IDX: INAF) also plans to build a paracetamol factory with PT Kilang Pertamina Internasional, a unit of energy producer PT Pertamina.

For the multi-year project, both companies prepared an investment around Rp600 billion through state capital injection and banking facilities. As the group, the drug-maker prepared a capital expenditure around Rp2.5 trillion in this year. Most of these funds will be use to make the company become a regional vaccine hub center in the Southeast Asia.

The CEO, Honesti Basyir, said that the funds came from the government’ capital injection for the health sector with total amount Rp2 trillion, where the portion for Bio Farma worth of Rp1 trillion to boost its capacity production, vaccine technology, and to become regional hub of the vaccines.

Currently, the capacity production of the firm more than 3 billion doses per year. Then, there are an investment in the digital system to make the pharmacy company’ have an end-to-end processes of production.

Bio Farma is the parent company of three pharmaceutical issuers on the Indonesia Stock Exchange (IDX), namely Kimia Farma, Indofarma, and PT Phapros Tbk (IDX: PEHA). Together with its unit, the drug-maker has collaborated with various global pharmacy firms to produces the vaccines.

The development of the vaccine is one of five scenarios for the manufacturer, in dealing with the spread of the SARS COV2 virus, including production of realtime polymerase chain reaction, convalescent plasma therapy, mobile BSL 3 laboratories, and manufacturing viral transport media.

US$1: Rp14,000

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