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State-owned pharmaceutical holding company budgets Rp 2 trillion to reduce raw material import

06 February 2020 13:07

JAKARTA. The state-owned pharmaceutical holding company has budgeted Rp 2 trillion in capital expenditure to reduce raw material import from China and India.

According PT Bio Farma (Persero) CEO Honesti Basyir, the majority of drug raw materials is imported from China. By the end of 2020, the state-owned pharmaceutical holding company targets to reduce raw material import by 5%. "60% of drug raw materials is still imported from China and the rest from India," said Mr Basyir.

To reduce import, PT Kimia Farma (Persero) Tbk (KAEF) will complete a plant in Pulo Gadung, East Jakarta. Although the investment required for the plant is not yet disclosed, KAEF will absorb Rp 500 billion of capital expenditure to increase its plant's capacity.

Meanwhile, Bio Farma has budgeted Rp 500 billion of capital expenditure, whereas PT Indofarma (Persero) Tbk (INAF) has budgeted Rp 300 billion. (KR/MS)

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