Jakarta, February 23rd, 2023 – Indonesia Investment Authority (INA) and Silk Road Fund (SRF) today announced the closing of the investment in PT Kimia Farma Tbk (KAEF) and PT Kimia Farma Apotek (KFA) as their first investment in Indonesia’s healthcare industry. This investment closing is a testament of INA and SRF’s conviction in Kimia Farma Group as the leading, fully integrated healthcare service provider in Indonesia.
INA’s vision of greater healthcare inclusion in Indonesia aligns with the Government’s priority in the health sector to improve healthcare quality for the people. Healthcare – together with Infrastructure & Logistics, Digital, and Green Energy & Transformation – is one of the key sectors INA is focusing on helping unleash Indonesia’s potential and drive the country’s future economic growth. Leveraging KFA's multifaceted portfolio of services, encompassing 1,200+ pharmacies, 450+ clinics and labs, INA is more than ready to support KAEF and KFA’s growth ambition to be the number one healthcare partner for Indonesians.
With the conclusion of this final stage, INA and SRF have officially become the strategic investor of KAEF and KFA by subscribing to KAEF MCB (mandatory convertible bonds) rights offering and acquiring a 40% shares in its subsidiary, KFA.
During the B20 Summit last November, Conditional Share Subscription and Purchase Agreement and the other transaction documents were signed by INA’s CEO, Ridha Wirakusumah; SRF’s Chairwoman of the Board of Directors, Zhu Jun; PT Bio Farma (Persero)’s President Director, Honesti Basyir; KAEF’s President Director, David Utama; and KFA’s President Director, Nurtjahjo Walujo Wibowo.
“Healthcare in Indonesia presents an attractive opportunity for investors given Indonesia’s market size and rapidly growing middle class. Through this investment, INA aims to accelerate healthcare access across Indonesia, further optimizing existing retail and healthcare delivery channels and expediting healthcare system digitalization to reach a broader cross-section of patients and customers,” Ridha said.
“This transformative deal is in line with our goal to achieve world-class levels of care and quality in the Indonesian healthcare sector. The development of a Universal Health Coverage system has advanced almost all aspects of the healthcare industry value chain in Indonesia, and we want to be an active player in the ecosystem,” Ridha further added.
“The closing of the deal marks the beginning of a new stage of the cooperation between SRF, INA, KAEF and KFA. As a leading integrated pharmaceutical company and top pharmacy retailer in Indonesia, KAEF and KFA have enormous potential to deliver differentiated customer value and better healthcare services. Working closely with our partners, SRF will bring in effective resources to support KAEF and KFA, for them to sharpen their edge and seize opportunities in the promising and fast-evolving healthcare industry in Indonesia. We hope to make this investment a flagship project of China-Indonesia cooperation under the Belt and Road Initiative,” said Zhu Jun.
Honesti Basyir said, “This corporate action shows the spirit of Bio Farma Group that is increasingly focused on supporting the development of the health ecosystem in Indonesia. This achievement is in line with the spirit and instructions from the Minister of SOE to make Indonesia an independent country in the health sector, and we can see that from what Kimia Farma has done.”
“A Right Issue of KAEF and the important action to Unlock Value of KFA are strategic steps taken to support the company's performance, mainly for the development of the Indonesian healthcare industry. We are optimistic that partnering with strategic investors, namely INA and SRF, will enhance the performance of Kimia Farma Group in the future,” David Utama said.
The agreement is a further example of a broader partnership and long-term cooperation between SRF and INA. Previously, on June 2022, INA and SRF signed an Investment Framework Agreement to facilitate their investment cooperation in Indonesia to enhance economic cooperation between the People’s Republic of China and Indonesia.
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About PT Bio Farma (Persero)
Bio Farma is a state-owned company that produces vaccines antisera, and other biological products (life science). As a world-class and globally competitive life science company, Bio Farma has implemented various integrated systems is committed to presenting quality products and innovation as demonstrated by its performance that always refers to international standards and the latest quality management systems. For more information, please visit www.biofarma.co.id.
About PT Kimia Farma Tbk
PT Kimia Farma Tbk is a healthcare company with an integrated upstream to downstream businesses in Indonesia. A member of the Bio Farma Group, PT Kimia Farma Tbk has several main business fields, namely the development of pharmaceuticals and medicinal raw materials; distribution; marketing; retail pharmaceuticals; laboratories and health clinic. For more information, please visit www.kimiafarma.co.id.
About PT Kimia Farma Apotek
PT Kimia Farma Apotek is a subsidiary of PT Kimia Farma Tbk which is engaged in pharmaceutical retail, especially in the pharmacy sector. There are three business fields run by PT Kimia Farma Apotek and its subsidiaries, which are pharmaceutical retail networks; health clinic services and clinical laboratories. For more information, please visit www.kimiafarmaapotek.co.id.
About Silk Road Fund (SRF)
Silk Road Fund is a medium to long term development and investment fund incorporated in China. Through a variety of equity-oriented investment and financing options, Silk Road Fund provides investment and financing support to promote multilateral and bilateral connectivity between China and other countries, as well as their economic and trade cooperation under the Belt and Road Initiative. For more information, please visit www.silkroadfund.com.cn.
About Indonesia Investment Authority (INA)
The Indonesia Investment Authority is Indonesia’s sovereign wealth fund, mandated to increase investment to support the country’s sustainable development and build wealth for its future generations. INA conducts investment activities and collaborates with leading global and domestic investment institutions in sectors that strengthen Indonesia's advantages and provide optimal returns. For more information, please visit www.ina.go.id.