Kimia Farma sets aside Rp939.5 billion for capital expenditure

Kimia Farma sets aside Rp939.5 billion for capital expenditure


Jakarta (ANTARA News) - Publicly traded pharmaceutical company PT Kimia Farma said it has set aside Rp939.52 billion for capital expenditures for 2014.

The capital spending will be used for business expansion, corporate secretary of the state company Djoko Rusdianto said after a shareholders meeting on Wednesday.

The company will open 100 more units of Kimia Farma dispensaries to added to 512 units now in operation all over the country, Djoko said.

He said Kimia Farma will also open 100 new units of clinics bringing the total number to 300 units by the end of this year.

He said Kimia Farma also plans to open dispensaries in neighboring countries including Malaysia, Timor Leste (East Timor) and Vietnam and in Saudi Arabia .

"Currently Kimia Farma already has a dispensary in Sepang, Malaysia. The number will be increased. Our sales in Malaysia have continued to increase," he said.

In Timor Leste, Kimia Farma will increase the number of its clinics with modern facilities, specialists compelte with chemical laboratories, he said.

The clinic in Timor Leste is located at Colmera, Audian with an investment of Rp500 million each .

The plan to open clinics and dispensaries in Saudi Arabia is still being studied after being approved by the religious affairs ministry, he said.

"The market target of clinics and dispensaries to be opened in Saudi Arabia are Indonesian migrant workers," he said.

There are hundreds of thousands of Indonesian migrant workers mostly house maids .

Djoko said expansion planned by Kimia Farma includes investment in manufacturing industry to produce biotechnology and radio pharmacy products.

Investment in the manufacturing sector to build new factories will cost around Rp400 billion, he said.

"Kimia Farma will also invest in shares by increasing its stake in PT Asuransi Jiwa InHealth Indonesia and in pharmaceutical salt factory," he said.

The fund for the capital expenditures will include internal cash and fund to be raised through the sail of Medium Term Notes (MTN) in the second half of 2014, he said.

"Currently we have Rp394 billion cash . MTN and bank loans will cover the rest," he said.