Kimia Farma Receives Strategic Rp 846B Loan from Bio Farma

Loan Details and Collateral

PT Kimia Farma Tbk (KAEF), a prominent state-owned enterprise in Indonesia's pharmaceutical sector, has secured a significant Rp 846 billion loan from PT Bio Farma (Persero), its parent company, through a Shareholder Loan (SHL) arrangement dated December 31, 2025. The loan is collateralized by land and buildings, indicating a substantial backing of tangible assets. This financial arrangement was disclosed through the Indonesia Stock Exchange (IDX) information disclosure platform.

Strategic Use of Funds

The loan proceeds will be allocated towards three primary objectives: working capital enhancement, operational debt settlement, and banking obligation fulfillment. Management has emphasized that these funds are crucial for supporting Kimia Farma's operational continuity and financial restructuring efforts. The loan is part of the company's comprehensive restructuring plan aimed at stabilizing financial performance and fostering sustainable business growth.

Corporate Context and Implications

This financial backing from Bio Farma demonstrates the parent company's commitment to supporting Kimia Farma's financial health. As both entities are state-owned enterprises operating in the healthcare sector, this transaction highlights the strategic importance of maintaining financial stability within Indonesia's pharmaceutical industry. The loan facility not only provides immediate financial relief but also signals confidence in Kimia Farma's long-term viability.