Kalbe And A Chinese Company Build A Drug Baku Material Factory With An Investment Of IDR 650 Billion

Kalbe Farma (Photo: Kalbe Farma)

JAKARTA - PT Kalbe Farma Tbk (KBLF) and Livzon Pharmaceutical Group Inc China (Livzon Group) announced the establishment of a strategic joint venture to produce medicinal raw materials or pharmaceutical active materials (API) with an initial investment of IDR 650 billion.

The formation is through Kalbe Farma's subsidiary, namely PT Global Chemindo Megatrading (GCM) and a subsidiary of Livzon Group, Lian SGP Holding Pte.Ltd. (Lian SGP). The name of the joint venture company is PT Livzon Pharma Indonesia.

The joint venture will focus on producing active pharmaceutical (API) materials and other pharmaceutical raw materials for the export market, including their potential in the domestic market.

"We welcome the collaboration with Livzon Group, which is a major drug raw material producer in China, which is an important milestone in increasing our competence in producing active pharmaceutical raw materials (API)," said President Director of PT Global Chemindo Megatrading Stanley Handiono Angkasa in a written statement, Tuesday, July 30.

He said the company's formation was part of the company's response to the Indonesian Government's initiative to strengthen domestic pharmaceutical active raw materials.

"In the long term, the construction of a domestic API factory will contribute to reducing dependence on imports and strengthening Indonesia's health resilience," he said.

Stanley also said that active pharmaceutical raw materials (API) play an important role in the pharmaceutical industry, in addition to advancing the Indonesian pharmaceutical industry, increasing export contributions, and ultimately enabling technology transfer and building research and development capabilities in Indonesia.

Meanwhile, the CEO of the Livzon Pharmaceutical Group Tang Yanggang stated, the joint venture marks a significant step in Livzon's strategy to expand reach in Southeast Asia.

"By combining Livzon's technology expertise with Kalbe's market knowledge, we are confident that we will be able to provide high-quality pharmaceutical products that will contribute to the health sector in Indonesia and its surroundings," he said.