The Special Staff Of The Minister Of SOEs Regarding Kimia Farma Closes 5 Factories: Inefficient

JAKARTA - Special Staff (Stafsus) of the Minister of SOEs Arya Sinulingga said the PT Kimia Farma (Persero) Tbk factory was closed because it was not efficient.

Still, Arya said, the factories built by the company were too many.

"We know this is an old factory that hasn't been efficient for a long time, they should only have 5, so there are 10," he said when met at the Ministry of SOEs, Jakarta, Thursday, July 18.

For your information, PT Kimia Farma (Persero) Tbk (KAEF) plans to close five of its 10 factories. The closure of this factory will be carried out in stages.

"From the start, he's never been this, he's always under capacity. So, it's really not necessary here to build that many factories," he continued.

Arya added that Kimia Farma's management is currently preparing mutually beneficial steps (win-win solutions) without harming both parties.

"It's being compiled with friends from Kimia Farma's management, there are consequences from the factory closure, right, there must be consequences, right. There must be things related to employees too," he said.

Previously, the Director of Production and Supply Chain Kimia Farma, Hadi Kardoko, explained that the factory closure or rationalization of production facilities was carried out for business reorientation, financial restructuring, and efficiency.

Hadi said that with the closure of this factory, he hoped to reduce operational costs, so that it could increase the efficiency of the company.

"Currently, our utilization is less than 40 percent, and later this arrangement will increase our utilization, of course, it will be above 40 percent and there will be a better efficiency process," said Hadi.