REPUBLIKA.CO.ID, JAKARTA -- A factory to be built by state-owned pharmaceutical company Kimia Farma as a joint venture with a South Korean partner is expected to allow the country to cut its imports of medicines by 50 percent.
Construction of the factory which will produce pharmaceutical basic materials would start this year in Lippo Cikarang, Bekasi, to be completed in 18 months, Kimia Farma president director Rusdi Rosman said.
Rusdi said the factory would produce 15 of hundreds of types of pharmaceutical basic materials needed in the country.
"We could not yet estimate the competitive prices for medicines, but we hope with the factory we could slash imports by 50 percent," Rusdi said after a general shareholders' meeting of the company here on Wednesday.
He said the 11th of a series of economic policy packages, announced recently by President Joko Widodo is expected to boost development of pharmaceutical industry to bring the country closer to self sufficiency in pharmaceutical basic materials.
"The availability of basic materials domestically would not only save fund in imports but the price of medicines are also expected to be cheaper," he said.
He said when the basic material factory has been in operation, Kimia Farma would produce medicines which are needed more by the people.
He said if the company's pharmaceutical products could not compete well in price against imported products, the company already has market in the United States and Japan.
"Our partner already has market there . Therefore, is the products did not sell on the domestic market the products could be exported to the United States and Japan as the quality is superior over imported products," he said.
The company has set aside Rp958 billion for capital spending this year to finance the construction of new factories, dispensaries and clinics.
The fund would be used for the construction of three pharmaceutical factories, a pharmaceutical salt factory and a number of dispensaries and clinics, Rusdi said.
The fund would be raised from bank loan and the sales of medium term notes (MTN), bonds and internal cash of the company.
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