REPUBLIKA.CO.ID, JAKARTA -- Public-listed pharmaceutical firm PT Kimia Farma has readied capital expenditure worth Rp600 billion to undertake several business expansions next year.
"We are still evaluating the most profitable sectors. We can again just issue medium-term notes (MTN) or banking loans for rights issue," PT Kimia Farma President Director Rusdi Rosman stated here on Wednesday.
The rights issue was carried out after making a proposal to the shareholders. However, the company does not rule out the possibility of utilizing external funds, banking loans, or even re-issuing MTN, he noted.
He said the capital expenditure funds would be used to expand the company's business, such as for covering building construction cost and purchasing machinery for its factory in Banjaran, Bandung, West Java.
This year, the company has used Rp200 billion of its Rp350 billion capital expenditure funds.
"The remaining funds will be utilized by the end of the year. We will use it to purchase machinery for pharmaceutical salt factories in Jombang, East Java," Rosman revealed.
Regarding business expansion of drug stores and clinics, he explained that the operation of the 700th drug store in Balikpapan in East Kalimantan on Tuesday (Oct. 20) provided opportunities to PT Kimia Farma Apotek, a Kimia Farma's subsidiary, to expand its business lines. It will not only sell drugs but also be involved in the health clinic business.
"We will develop PT Kimia Farma Apotek to conduct business in sectors that benefit the people. We can sell cellular phone minutes, do business for offering money order services, and capitalize on other business opportunities," he pointed out.
With 700 drug stores spread across the country, PT Kimia Farma Apotek is in a bargaining position with medicine producers that will help to improve the efficiency of Apotek's operations, Rosman noted.
He stated that Kimia Farma could post an income of about Rp5.2-5.5 trillion, with a net profit target of Rp250 billion.
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