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Kimia Farma sets aside Rp 4.2t for capex
Kimia Farma finance director IGN Suharta Wijaya said 70 percent of the capital expenditure would come from bank loans and medium-term notes (MTN), while the other 30 percent would come from the firm’s internal fund.
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State-owned pharmaceutical company PT Kimia Farma operates a floating health center in West Nusa Tenggara. The facility serves patients in seven islands in West Lombok. (JP/JP/Panca Nugraha)
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tate-owned pharmaceutical company PT Kimia Farma is allocating Rp 4.2 trillion (US$295.73 million) for its capital expenditure (capex), a portion of which will go to developing its downstream business through the acquisition of hospitals.
Kimia Farma finance director IGN Suharta Wijaya said 70 percent of the capital expenditure would come from bank loans and medium-term notes (MTN), while the other 30 percent would come from the firm’s internal fund.
“Among the businesses we have yet to run are hospitals. One option is to acquire a hospital,” Suharta said as quoted by kontan.co.id on Sunday, adding that the company had started to expand both its upstream and downstream businesses.
He conceded that Kimia Farma was currently eyeing three hospitals but declined to identify them by name. The company was previously rumored to be looking at hospitals in Jakarta, West Java and East Java.
With the acquisition, he added, the company wanted to assure that participants of the Healthcare and Social Security Agency (BPJS Kesehatan) would be served properly.
“We want to have control of those hospitals; we have to own at least 51 percent of the shares,” Suharta said.
He added that the company would discuss the acquisition process with its subsidiary PT Phapros, which it had recently acquired from PT Rajawali Nusantara Indonesia (RNI).
“In the next three months, we will hold a post-merger integration program. We will discuss in detail what Phapros will do and what Kimia Farma will do. For the time being, we will run our respective businesses,” he added.
Outside its core business, Kimia Farma also plans to develop warehouses for healthcare products and cosmetics at a 3.5-hectare plot of land in Cikarang, Bekasi, West Java, which could be used as distribution centers.
“We will also develop health and beauty outlets as well as our existing drugs stores all over Indonesia,” Suharta added. (bbn)
