KUTA, Bali (BPN) – State-owned pharmaceutical companies PT Bio Farma (Persero) (Bio Farma), PT Kimia Farma Tbk (KAEF), and PT Kimia Farma Apotek (KFA) have signed a strategic partnership with Silk Road Fund (SRF) and Indonesia Investment Authority (INA).
The signing was carried out at the Indigo Seminyak Hotel, on Sunday (11/13/2022) and witnessed by Vice Minister I of the Ministry of State-Owned Enterprise Pahala Mansury, and President Commissioner of Bio Farma Tanri Abeng.
Pahala Mansury said this investment collaboration can open up Kimia Farma’s access to expertise from global investors.
“Access to global investors will also strengthen the company’s position and improve quality in accordance with international standards,” Pahala said.
The transformative partnership is in line with the Indonesian government’s goals of further developing the country’s healthcare industry to bring it to international quality and standards.
This strategic investment will take KAEF and KFA as well as Indonesia’s healthcare industry to the next level.
This investment collaboration was embodied in the signing of a Conditional Share Subscription and Purchase Agreement and other related transaction documents between KAEF and its subsidiary, KFA with SRF and INA.
Total investment is approximately IDR1,860,000,000,000 for a 40 percent stake in KFA, subject to closing account mechanics from the latest financials report at Completion.
The investment will be used towards funding KFA’s strategic business expansion, working capital requirements as well as initiatives to further improve operational efficiency.
Both investors will also participate in the proposed Pre-emptive Rights Issuance transaction at KAEF which was approved through the Extraordinary General Meeting Shareholders dated 14 October 2022 held in Jakarta.
KAEF will obtain funding to support its working capital to expand the Company and to improve health services to Indonesian society.
On the same occasion, the President Director of Bio Farma Honesti Basyir, mentioned that this investment collaboration will strengthen the working capital structure of Bio Farma Group’s direct and indirect subsidiaries.
“As a pharmaceutical SOE holding group, Bio Farma supports every tangible form of investment in the development of the healthcare industry in Indonesia,” he explained.
The President Director of Kimia Farma, David Utama, stated that the influx of investors will open market opportunities and the Kimia Farma network, both in terms of retail and health services to foreign countries.
In addition, the collaboration can improve the capital structure at KFA so that it is able to develop further businesses in the future, and in the long run will increase the value of the Company.
“This investment collaboration will strengthen the Company’s capital structure, so as to improve operational and financial performance to deliver better Company performance,” said David.
The Chairwoman of the Board of Directors of SRF, Zhu Jun, said, “The deal is a key high-quality project cooperation between China and Indonesia under the Belt and Road Initiative and represents an attractive investment opportunity. Through the strong support of the Indonesian government and joint efforts of INA, we look forward to working closely with Kimia Farma’s and KFA’s management in the next phase of the Companies’ development.”
The CEO of INA, Ridha Wirakusumah, underlined, “We feel optimistic this agreement will unleash the potential of the pharmaceutical ecosystem in Indonesia. Kimia Farma Group has a prominent end-to-end presence across its value chain, with more than 1,100 outlets, 400 clinics, and 70 diagnostic labs.
We believe the collaboration with SRF sealed in this agreement will support the Company’s expansion to increase healthcare access for underserved Indonesians.”
In accordance with INA’s mandate, INA plays a role in attracting both domestic and international investment as an alternative to non-debt financing, which is used to support the development of sustainable health businesses in Indonesia.
As one of the alternative sources of financing, the involvement of SRF and INA supports the realization of long-term prosperity for all Indonesians.
 – To advance the development of the healthcare industry in Indonesia, state-owned pharmaceutical companies PT Bio Farma (Persero) (Bio Farma), PT Kimia Farma Tbk (KAEF) and PT Kimia Farma Apotek (KFA) have signed a strategic partnership with Silk Road Fund (SRF) and Indonesia Investment Authority (INA).){kind=link}