JAKARTA. PT Bio Farma (Persero), the parent of a pharmaceutical holding company owned by the Government of Indonesia, will distribute a loan facility worth IDR 157 billion to support the restructuring plan of PT Indofarma Tbk (INAF).

Agus Heru Darjono, President Director of INAF, said that the loan facility is material because its value exceeds 50% of the company's total equity. Therefore, said Dajono, the company will seek approval from the Annual General Meeting of Shareholders (GMS), which will be held on May 31, 2023.

"The source of funds that the company will use to repay loans from PT Bio Farma (Persero) is from the company's cash flow, which is expected to improve with increased collection efforts and increased sales, both tender and regular sales," said Darjono, through his official statement.

The loan agreement between Bio Farma and INAF is targeted to be completed by June 30, 2023.

For the record, Bio Farma will charge a loan interest rate of 7% per year to INAF. While the tenor given by Bio Farma for INAF is 13 months, since the signing of the agreement. (KR/LM)