JAKARTA. Bio Farma will officially control PT Kimia Farma (Persero) Tbk (KAEF) and PT Indofarma (Persero) Tbk (INAF), following the signing of Government Regulation (PP) Number 76 of 2019 regarding Addition of State Capital Participation into PT Bio Farma (Persero) by President Joko Widodo (Jokowi) recently.
According to Setkab (Cabinet Secretariat) web page on Saturday (19/10), President Jokowi signed the PP on 15 October 2019. The PP was signed to strengthen the capital structure and increase the business capacity of Bio Farma.
"The government deems it necessary to increase capital participation to PT Bio Farma (Persero)," said Setkab in its official statement quoted by CNBC Indonesia on Sunday (20/10/2019).
The addition of state capital participation lead to two things. First, the status of Kimia Farma and Indofarma is changed into a limited liability company that is fully subject to Law Number 40 of 2007 concerning Limited Liability Companies. Second, Bio Farma becomes the shareholder of Kimia Farma and Indofarma.
On 18 September, the Ministry of State-Owned Enterprises (SOEs) also officially appointed Honesti Basyir, former Managing Director of Kimia Farma, to become the Managing Director of Bio Farma, the holding company of the Pharmaceutical SOEs Holding initiated by the government. The holding aims to make the performance of pharmaceutical SOEs stronger and facilitate access to investment that results in business expansion. (AM/AR)