Indofarma's Recovery Path: Challenges and Prospects

Early Signs of Improvement

PT Indofarma Tbk (INAF) is showing initial signs of recovery through various efficiency measures implemented by the company. According to Muhammad Wafi, Head of Research at KISI Sekuritas, the reduction in operating expenses to sales ratio through Q3-2025 indicates positive progress. 'This is a positive signal from the efficiency efforts, but Indofarma is still in survival mode,' Wafi stated.

Dependence on Funding Support

The recovery process is heavily dependent on successful working capital injection. Wafi emphasized that merely cutting costs is insufficient; achieving positive operational cash flow is crucial for sustainable recovery. The company's ability to secure necessary funding will be critical in determining its future prospects.

Analyst Recommendations

Analysts are cautiously optimistic about Indofarma's prospects while acknowledging the challenges ahead. The company's journey toward full recovery requires not only cost management but also successful implementation of its business strategies and securing financial backing. Continued monitoring of Indofarma's financial health and operational performance will be essential for investors.