JAKARTA. PT Phapros Tbk (PEHA) estimates that the weakening of rupiah will increase its production costs and affect the company's profit projection.
Managing Director of PT Phapros Tbk, Barokah Sri Utami said that the company had previously made a profit projection of Rp 186 billion. But if the rupiah exchange rate falls to the level of Rp 16,500 per US$ 1, then the projection will be revised to Rp 135 billion with sales of Rp 1.5 trillion, due to higher production costs.
According to her, production activities will also be affected since 95% of pharmaceutical raw materials used in Indonesia are still imported.
In anticipation to this, PEHA increased its raw material orders to suppliers from Rp 122 billion to Rp 155 billion. (AM/AR)