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Indofarma Seeks to Cut Rp93bn in Costs

3 December 2014 06:16 WIB

Obat generik yang diprodukasi Indofarma. TEMPO/Ayu Ambong

TEMPO.CO, Jakarta - State-owned pharmaceutical company PT Indofarma (Persero) Tbk (IDX: INAF) aims to cut this year's operational cost by up to Rp93 billion. President director Arif Budiman said efficiency measures will be taken in a variety of budget items such as salary savings, operational costs, and official travel.


"One of savings is done by trimming down our number of managers from 38 people to just 18," Arif said in Jakarta yesterday.


In terms of production, Indofarma is working with its peer PT Kimia Farma (Persero) Tbk. Both companies agreed to place their raw materials orders together, as ordering in bulks allow for a lower price.


Indofarma director Syamsul Hadi said the company has allocated Rp135 billion for next year's capital expenditure (capex), of which Rp95 billion will is allotted for factory construction and the remaining Rp40 billion will be spent on developing equipment.


Indofarma will source its capex by issuing 3-year medium term notes (MTN) worth Rp160 billion. Meanwhile, the company has absorbed around 80 percent of this year's capex. 


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