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Indofarma to sell assets to Bio Farma to pay workers, debts
The State-owned Enterprises (SOEs) Ministry has announced that PT Indofarma will sell assets to its holding company, Bio Farma, to reduce its debt and pay out withheld wages.
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State-owned Enterprises (SOEs) Minister Erick Thohir visits state-owned pharmaceutical company PT Indofarma on June 21, 2021, as the company started producing Ivermectin to meet COVID-19 drug demand in West Cikarang, Bekasi, West Java. (SOEs Ministry/Dhika Permana)
T
he State-Owned Enterprises (SOEs) Ministry has announced that PT Indofarma will sell assets to its holding company, Bio Farma, to reduce its debt and pay out withheld wages.
The plan was revealed by deputy SOEs minister Kartika “Tiko” Wirjoatmodjo on Monday following a meeting with House of Representatives’ Commission VI, which oversees trade, industry and SOEs.
“We’re currently allocating [Indofarma] assets of a sufficient amount. The Bio Farma holding will help. These assets will be [sold to] the holding in stages, which later will be used for employee settlements,” Tiko said, as quoted by Tirto.
The deputy minister said the settlement amount of the wages in arrears would depend on the value of Indofarma’s assets, but added that he “would try to maximize them”.
“For workers, we are currently lining up asset sales which we will sell in stages to resolve issues so things become efficient going forward,” Tiko said.
The proceeds from the asset sales are also meant to repay debts incurred by Indofarma to both creditors and vendors, which is also to be conducted in stages in line with the debt payment obligation suspension (PKPU) arrangement.
SOEs Minister Erick Thohir said his office had assessed that the firm’s sellable assets would provide Rp 95 billion (US$6.1 million) worth of the workers’ wages in arrears.
