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tate-owned pharmaceutical company PT Indofarma welcomed its new president director on Thursday to replace the firm’s previous head, who was allegedly seen as obstructing a consolidation plan forwarded by the government.

In an annual general meeting of shareholders (AGM) on Thursday, Elfiano Rizaldi — who previously served as research and marketing director, was approved to take over as president director from Djakfarudin Junus, whose tenure was originally due to end next year.

Elfiano said the change of president director had been recommended by the majority shareholder — the government — which now holds an 81 percent stake in the company.

“The majority shareholder had its own reasons for the change,” Elfiano said.

The change in the company’s top post was made while the government plans to consolidate Indofarma, whose shares are traded on the Indonesia Stock Exchange (IDX) under the code INAF, with another state-owned listed pharmaceutical firm, PT Kimia Farma (KAEF).

The consolidation was first proposed eight years ago, but it has faced setbacks over debates on the three consolidation options: whether to opt for a merger, an acquisition or form a holding company as an umbrella for both companies.

The most recent proposal, according to the State-Owned Enterprises Ministry, has been an acquisition, with INAF becoming a subsidiary of KAEF. Under this scheme, the government would transfer its stake in the former to the latter.

However, the plan was pending approval from the House of Representatives, KAEF president director Rusdi Rosman said on Wednesday.

Rumors have been circulating that Djakfarudin was replaced because he had been too critical of the consolidation plan.

Elfiano declined to comment on whether the change in his company was aimed at paving the way to an acquisition.

“I don’t have the capacity to answer that,” Elfiano said.

President commissioner Supriyantoro gave a similar response. “[Changing the president director] is the right of the shareholders. However, Indofarma’s board of directors has been very supportive [of the consolidation plan],” he said.

Supriyantoro will be leaving his position on the board of commissioners at Indofarma as he was appointed at the AGM as the new president commissioner of KAEF. He will be succeeded by Akmal Taher. Indofarma, meanwhile, will receive two new commissioners: Rina Moreta and Fajar Rahmat Zulkarnaen.

Former Indofarma president director Djakfarudin said he was upset at the decision to cut short his term.

“Many [people] have attacked me despite my good performance,” Djakfarudin told The Jakarta Post.

Indofarma reported Rp 1.16 trillion (US$119.55 million) in revenue last year, declining by around 4 percent from Rp 1.2 trillion a year earlier. Despite the lower revenue, the company’s net profits rose almost 15 percent to Rp 42.39 billion in 2012 compared to Rp 36.92 billion in 2011.

The profit increase was attributed to greater efficiency and the sale of higher margin products. The company mostly produces generic medication.

Djakfarudin denied that he was opposed to the government’s consolidation plan.

“I have been saying that whatever the plan, it must have a clear direction. I have been maligned because I am a critical person. KAEF doesn’t like me and is afraid of challenging me,” Djakfarudin said.

Shares in INAF were unchanged at Rp 315 apiece at the close of trade on Thursday. Meanwhile, shares in KAEF closed at Rp 990 apiece, an increase of 2 percent compared to the closing price the day before.