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SOEs Will Dominate Indonesia's Pharmacy Market  

15 April 2013 20:46 WIB

Pengunjung menghadiri pameran niaga industri farmasi "Convention on Pharmaceutical Ingredients Southeast Asia yang diselanggarakan di Jakarta Internasional Expo, Kemayoran, Jakarta, Rabu (20/3). Pameran yang terselanggara untuk kedua kalinya di Indonesia ini berlangsung pada 20-22 Maret 2013. TEMPO/Aditia Noviansyah

TEMPO.CO, Jakarta-The government's plan to synergize two pharmaceutical state-owned enterprises, PT Kimia Farma Tbk and PT Indofarma Tbk, is expected to have a positive outlook. Analyst from Trust Securities Reza Priyambada said the merger would resulted in a balanced market share in the pharmaceutical industry between public and private companies.

"Currently, PT Kalbe Farma Tbk controls the majority of the market, leaving the rest to other pharmaceutical companies such as Kimia Farma and Indofarma," Reza said last weekend. He assessed that having a state-owned holding pharmaceutical company could support the industry's growth.

Since 2005, the government has been mulling over to merge Kimia Farma and Indofarma. However, the plan is still being kept on hold as both are still listed as public companies. Previously, the government has made sure that Kimia Farma will take over 100 percent of Indofarma's shares after garnering the necessary funds through a rights issuance.

Indonesia currently has three state-owned pharmaceutical companies, Kimia Farma, Indofarma and PT Biofarma (Persero).

NANDA P | RIRIN A | GUSTIDHA B | A MALIK

Pharmaceutical Industry


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