Kimia Farma sets aside Rp 4.2t for capex

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Kimia Farma sets aside Rp 4.2t for capex

• News Desk
  The Jakarta Post
  

Jakarta / Sun, May 5, 2019 / 05:00 pm

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)
State-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)


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Kimia Farma distributes Rp83.2 billion as dividends
8th May 2019 09:47

Jakarta (ANTARA) - Publicly-listed state pharmaceutical firm PT Kimia Farma (Persero) Tbk has decided to distribute dividends worth Rp83,2 billion to shareholders this year.

The dividends account for 20 percent of the company's net profit, which can be distributed to the owners of the parent entity in the book year 2018 at Rp415.89 billion.

"Compared to last year, the dividend this year declined. Last year, the dividend represented 30 percent (of net profit) and now it declined to 20 percent due to business expansion," he said.

Kimia Farma expanded the regional business to the Middle East in 2018 so the company needs intensive investment.

"Therefore, we call on our shareholders to see that the 20 percent of dividends we will distribute are aimed at strengthening the fundamental of our entities," he said.

Kimia Farma posted total assets of Rp9.46 trillion last year, up 55.2 percent from Rp6.10 trillion a year ago.

The business expansion, acceleration and transformation enabled the company to post a net profit of Rp401.79 billion, increasing 21.13 percent from Rp331.7 billion.

The meeting also agreed on a reshuffle of the company's lineup by discharging Muhammad Umar Fauzi, Pujianto and Arief Pramuhanto.

The company later welcomed Subandi as commissioner, Andi Prazos as business development director and Dharma Syahputra as General Affairs & Human Capital director.



Editor: Fardah Assegaf

COPYRIGHT © ANTARA 2019

 

[Nike]

After Saudi Arabia, Kimia Farma eyes expansion to Vietnam

• News Desk
  The Jakarta Post
  

Jakarta / Thu, May 9, 2019 / 09:08 am

A man purchases products at a Kimia Farma pharmacy. (Tribunnews/Tribunnews)
After acquiring shares in a Saudi Arabian company, state-owned pharmaceutical company PT Kimia Farma has expressed its intention to expand its business to Vietnam by acquiring a local company.

Kimia Farma finance director I.G.N Suharta Wijaya said the company was studying the regulations in the country to find out if a foreign company was allowed to control the majority of shares in a local company.

“So, it depends on the regulation in the country. It the regulation is okay, we will enter the country this year,” Suharta said in Jakarta on Tuesday as quoted by tempo.co.

He stressed that to enter the country, Kimia Farma had to hold majority shares of a local company as otherwise, the investment was not secured.

Suharta said Kimia Farma was interested in acquiring a Vietnamese company that had 400 outlets in the country, fewer than the outlets owned by Kimia Farma.

“If the sales of each Kimia Farma outlet in the country is Rp 1.5 billion [US$104,877] per month, [the sales of an outlet of the Vietnamese company] could be Rp 4 billion per month,” he added.

If the plan works, it will be the second overseas expansion by Kimia Farma. Previously, the company invested Rp 130 billion to acquire Dawaa Medical Limited Company, a company in Saudia Arabia. Dawaa is a subsidiary of Marei Bin Mahfouz Group, which also runs a healthcare business.

Kimia Farma president director Honesti Basyir said the company invested Rp 148.2 billion in Saudi Arabia. With the move, Kimia Farma controls 60 percent of the shares and changed the name of the company to Kimia Farma Dawaa. (bbn)


https://www.thejakartapost.com/news...ia-kimia-farma-eyes-expansion-to-vietnam.html

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