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 abroad.

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

Totolink outlet. (Photo: Public Relation of Totolink)

Kamis, 11 Juli 2024 - 22:08 WIB

Totolink Strengthens Commitment to Innovative and Reliable Network Solutions for Indonesia

Marking a strategic step, Totolink Indonesia proudly announces the enhancement of its head office in Jakarta, located at Harco Mangga Dua Blok E No.28, Sawah Besar, Central Jakarta.

The President Commissioner of Bersama Digital Data Centres (BDDC), Setyanto Hantoro (fourth right) and The President Director of BDDC, Angelo Syailendra (third right) during the BDDC JST1 Inauguration Ceremony in Jakarta on Wednesday (10/07/2024).

Kamis, 11 Juli 2024 - 19:03 WIB

BDDC Inaugurates JST1 TIER IV Data Centre in Jakarta to Strengthen Digital Infrastructure

Bersama Digital Data Centres (BDDC), an in-town data centre provider with interconnectivity and integrated digital systems, inaugurated its 5 MW Tier IV data centre facility, JST1 (Jakarta Selatan…

The Board of Directors of PTT Global Chemical (GC) pose for a group photo after receiving the prestigious SNI (Indonesian National Standard) certification for its InnoPlus Polyethylene resin. (Photo: GC Public Relations)

Kamis, 27 Juni 2024 - 15:30 WIB

Global Chemical Achieves Prestigious SNI Certification for InnoPlus Polyethylene Resin

PTT Global Chemical (GC) is proud to announce its successful attainment of the prestigious SNI (Indonesian National Standard) certification for its InnoPlus Polyethylene resin.

 Financial Literacy

Rabu, 26 Juni 2024 - 22:47 WIB

The Importance of Financial Literacy

Financial literacy refers to the ability to understand and use various financial skills effectively, including personal financial management, budgeting, and investing.

Unveiling New Opportunities

Rabu, 26 Juni 2024 - 14:52 WIB

Unveiling New Opportunities

As we step into 2024, the cryptocurrency landscape continues to evolve, presenting unprecedented opportunities for investors, developers, and enthusiasts.