Pharmaceutical Industry Moves, Kimia Farma Build Factory in Saudi Arabia

By : Herry Barus And Aldi Firhand. A | Monday, March 05 2018 - 21:21 IWST

PT Kimia Farma Tbk (KAEF)
PT Kimia Farma Tbk (KAEF)

INDUSTRY.co.id - PT Kimia Farma (Persero) Tbk, through its subsidiary Kimia Farma Dawaa, will build pharmaceutical and health products factory in Saudi Arabia with investment value of around Rp 1 trillion in order to expand the pharmaceutical industry to the Middle East and Africa region.

"The business development review of the plant in Saudi Arabia is in the process of completion, starting in 2020 and is targeted to operate in 2022," said Kimia Farma Dawaa, Ida Rasita, deputy of GM in Jakarta on Monday (5/3/2018)

According to Rasita, the construction of a planned pharmaceutical factory in Jeddah City, Saudi Arabia is a strategic plan for Kimia Farma to expand its business aoad.

He explains, Kimia Farma and Marei Bin Mahfouz (MBM) Group based in Saudi Arabia, recently formed a joint venture, Kimia Farma Dawaa.

In the company Kimia Farma became the majority shareholder, after acquiring a 60 percent stake in Dawaa Medical Limited Company (Dawaa) a subsidiary of MBM.

Kimia Farma's capital investment in Dawaa reaches 38 million Saudi Arabian real estate or equivalent of about Rp133 billion, which is used for the development of the company's business.

This corporate action also marked the beginning of the operation of Kimia Farma Dawaa effectively in March 2018.

Rasita explains, Kimia Farma Dawaa early stage will focus on distribution and retail of pharmacies including opening outlets near the Grand Mosque in Mecca and Nabawi Mosque in Medina, as well as supporting health services for pilgrims and umrah.

But in the long term Kimia Farma Dawaa opened opportunity to build pharmaceutical factory in Saudi Arabia.

"The plant may be built in Jedah, in addition to supplying pharmaceutical products to Middle Eastern countries, also targeted for exports to African countries," he said.

He explains, the pharmaceutical industry in the upstream sector in Saudi Arabia is a bit late developing, so that the country opened and facilitate investment permit for investment.

"The reason Saudi Arabia opens investment opportunities Kimia Farma in the country is a halal guarantee, along with Indonesia which is one of the countries with the largest Muslim population in the world," said Rasita.

That way, halal certification from importing countries can be more easily issued as for the Organization of Islamic Conference countries (OIC).

"Gulf countries, OIC, shopping for body and communications treatments including health insurance are very good," he said as quoted by Antara.

Currently mentioned, only seven pharmaceutical manufacturing companies are established in Saudi Arabia.

By establishing a pharmaceutical factory in Saudi Arabia, Kimia Farma Dawaa can also expand production markets to countries in the Middle East region, including exports to African countries.

News Comment

Today's Industry

Kementan dan teknologi iradiator

Sabtu, 22 September 2018 - 21:30 WIB

Ministry of Agriculture Utilizes Gamma Iradiator Technology to Encourage Fresh Fruit Exports

South Tangerang - Indonesia as a tropical country has quite high fruit variants. Every region in the country has superior products and has been planted on a fairly large scale. In addition to…

Mentan Amran

Sabtu, 22 September 2018 - 21:00 WIB

Optimistic Minister of Agriculture Indonesia Can Have the Best Training Center in the World

Lembang - Agriculture Minister Andi Amran Sulaiman made a working visit to the Lembang Agricultural Training Center (BBPP) on Thursday (9/21). During this visit, Amran called on the employees…

Mentan Andi Amran Sulaiman, Menteri BUUMN Rini Soemarno, Menteri Desa PDT (Foto Humas)

Sabtu, 22 September 2018 - 20:30 WIB

Take Good Care of Agricultural Production, The Performance of the Minister of Agriculture Amran Asked not to be disturbed

Jakarta - Minister of Agriculture (Minister of Agriculture) Amran Sulaiman is considered to have demonstrated maximum work in maintaining the stock of food availability. Production in the agricultural…

Kepala (BPPSDMP) Kementan Momon Rusmono

Sabtu, 22 September 2018 - 20:00 WIB

Ministry of Agriculture Affirms the Commitment of Farmers' Welfare in the Main Meeting of the KTNA Group

Pangkal Pinang - Ministry of Agriculture affirms its commitment to encourage national food productivity to improve farmers' welfare. The existence of farmer groups is very important to empower…

Jaksa Agung, HM Prasetyo

Sabtu, 22 September 2018 - 19:30 WIB

AGO Appreciates Lombok's Earthquake Fund OTT

Jakarta - Attorney General Muhammad Prasetyo appreciated the performance of the Mataram District Prosecutor's Office, West Nusa Tenggara, who carried out the Lombok earthquake fund capture operation…