A saleswoman shows Teledoc, a self-diagnostic tool offered by Indofarma, in a launching event in Jakarta on July 27, 2020.(B1 Photo/Mohammad Defrizal)

Indofarma Confident of 2021 Turnaround With Medical Equipment Strategy


MARCH 10, 2021

Jakarta. State-controlled pharmaceutical company Indofarma is optimistic to turnaround its financial performance this year, banking on medical equipment sales expansion, the company's president director Arief Pramuhanto said on Tuesday. 

"We are optimistic that the company's financial performance this year will be better," Arief said during a virtual visit to BeritaSatu Media Holding.  

"We certainly want to give the best to stakeholders, including shareholders. We hope that this year the company can distribute dividends," he said. 

The company booked Rp 14 billion ($972,000) loss in the third quarter last year, widening from Rp 10 billion loss in the same period a year earlier, as the prices of medicines raw materials soared during the Covid-19 pandemic, Indofarma's latest financial statement showed.

Indofarma booked Rp 302 billion sales in the three-month period, up 40 percent from Rp 215 billion in the corresponding period a year earlier, but its cost of goods sold rose 48 percent to Rp 238 billion from Rp 161 billion. 

Arief said Indofarma decided to expand its medical equipment sales instead to 48 percent of its total sales last year from just 19 percent in 2019. 

"Now our portfolio is in balance, 50 percent pharmaceutical and 50 percent medical equipment. This is one of the company's efforts to respond to the Covid-19 pandemic," he said. 

He said Indoframa's medical equipment sales would increase to account for about 60 percent of total sales this year. The company anticipated a sustained demand for Covid-19 diagnostic products like rapid antigen tests, hospital supplies, and high-tech medical machines like hemodialysis machines. 

Also, Indofarma expected demands for personal protective equipment would also increase. It planned to build manufacturing facilities for high-volume hospital supplies like face masks, syringes, and medical gloves. Indofarma would "allocate around Rp 200 billion" for the investment this year, Arief said. 

Today, the company has three production lines that could churn out up to 1.5 million medical-grade face masks per month. "We will likely produce raw material for face masks," Arief said.