JAKARTA. PT Kimia Farma Tbk (KAEF) and PT Kilang Pertamina Internasional (KPI) will develop a paracetamol factory with an investment value of US$40 million-50 million.
The companies signed a head of agreement (HoA) last year to develop a paracetamol factory with a capacity of 3,800 tonnes per annum.
The factory is part of the government's strategy to support domestic pharmaceutical independence due to the fact that 95% of drug raw materials is still imported.
Regarding investment portions, KPI Corporate Secretary Ifki Sukarya said it will depend on both companies' business scheme. "It will be determined depending on the business scheme," Mr Sukarya said as quoted from CNBC Indonesia last week.
According to Kimia Farma Corporate Secretary Ganti Winarno, investment for the project will be sourced from state equity capital and bank loans. (AM/MS)