Bio Farma Plans to Merge with State-owned Hospital Holding

TheIndonesia.co - President Director of the state-owned pharmaceutical company PT Bio Farma Honesti Basyir announced plans for a state-owned hospital holding to merge with a state-owned pharmaceutical holding to support the national health security program.

"The plan is to merge them to complete the health ecosystem," Basyir informed in Jakarta, Monday, August 22, 2022.

Though the pharmaceutical holding already has complete health service elements, such as a clinic, it does not have a hospital yet, he said.

“The pharmaceutical holding is focusing on the supplier side, such as medicines, vaccines, and medical devices. Meanwhile, in health services, we must strengthen our capability in the form of hospitals or clinics," Basyir added.

He also said that the company will later control not only products but also health services from upstream to downstream. "If we can integrate the supply and demand sides, this is extraordinary. There is no benchmark in the world where there is a corporation that has a very complete ecosystem in the healthcare industry. That is our mandate," Basyir said.

The plan to merge the two holdings may also involve a change in the name of the holding, he added. The merger of the pharmaceutical holding and the state-owned hospital is among the government’s programs, which also include building national health resilience.

Earlier, Bio Farma was granted a mandate by the State-Owned Enterprises (SOEs) Ministry to become an SOE pharmaceutical holding. Bio Farma is the holding company for two members, Kimia Farma and Indofarma.

In July 2022, the SOE pharmaceutical holding welcomed a new member, namely PT Indonesian Nuclear Industry (Persero) or INUKI. INUKI is focusing on radiopharmaceutical products or nuclear-based medicine.
So far, the pharmaceutical holding has covered many sectors such as manufacturing, distribution systems, and health services, including clinics. The holding is also running the largest pharmaceutical retail network in Indonesia through Kimia Farma pharmacy outlets.