Indofarma Clarifies Mass Layoffs as Strategic Business Restructuring

Background on Recent Layoffs

PT Indofarma Tbk (INAF), a state-owned pharmaceutical company, faced public scrutiny following reports of mass layoffs affecting 413 employees on September 15, 2025. The news sparked concerns about the company's operational stability and future prospects. However, BPI Danantara's Chief Operating Officer, Dony Oskaria, provided crucial context regarding the nature of these layoffs during a recent statement.

Danantara's Official Response

Dony Oskaria explained that the process was not a straightforward termination of employment but rather a strategic restructuring initiative. According to Oskaria, the company offered certain employees the opportunity to leave as part of a broader business reorganization plan. He emphasized that while some employees chose to leave, the company later re-hired 18 new staff members in late September 2025, indicating a selective recruitment process following the restructuring.

Future Consolidation Plans

The restructuring is part of a larger strategic plan to consolidate Indofarma under Kimia Farma, another state-owned pharmaceutical company. This consolidation aims to create a more efficient operational and financial structure within the state-owned pharmaceutical sector. By integrating Indofarma under Kimia Farma, the government hopes to achieve better resource allocation and enhanced competitiveness in the pharmaceutical industry.

Implications for State-Owned Pharmaceutical Sector

This move reflects a broader trend of consolidation within Indonesia's state-owned enterprises (SOEs), particularly in the pharmaceutical sector. The restructuring is expected to have significant implications for both employees and the company's future market positioning. While the short-term impact includes workforce adjustments, the long-term goal is to create a more robust and competitive entity in the pharmaceutical market.