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Kimia Farma to halve production facility amid financial woes
Indonesia’s biggest pharmaceutical company plans to close five factories within the next two or three years in a measure that its director of production and supply chain attributed to the need to ensure sustainability.
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A man purchases products at a Kimia Farma outlet in this undated photo. (Tribunnews/Tribunnews)
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ndonesia’s biggest pharmaceutical company, PT Kimia Farma, has announced plans to close five factories within the next two or three years. The company’s director of production and supply chain, Hadi Kardoko, said on Tuesday the measure was needed to ensure sustainability.
“Of course, in rationalizing, we need to carefully consider business continuity and take into account the prevailing regulations,” Hadi said on Tuesday during the company’s annual general meeting of shareholders, as quoted by Detik.
He added that the closing of pharmaceutical factories would take time and that the company would take into account the market impacts of such a move.
"We must not cut off the availability of medicines, otherwise there will be none. This is why we need two to three years, besides [the need to comply with] regulations," Hadi said.
The director said the plan to close five factories of the state-owned enterprise was aimed at optimizing the operations across the firm’s production facilities, and he expressed confidence that the measure would reduce high operational costs.
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"In doing so, we hope that, if yesterday showed our three-shift utilization amounted to less than 40 percent [capacity utilization], carrying out this plan will increase our utilization rate to above 40 percent and lead to greater efficiency,” he said.
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