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Singaporean pharma company keen to establish pharmaceutical factory in Indonesia

Jakarta (ANTARA News) – A Singaporean pharma company has expressed interest to invest US$4 million to build a pharmaceutical factory in Jakarta, Bogor, Depok, Tangerang, and Bekasi region (Jabodetabek), according to the Indonesian Investment Coordinating Board (BKPM).

The pharmaceutical factory will be worth Rp55.6 billion, with an exchange rate assumption of Rp13,900.

“The value of the factory may not be too significant, however, pharmaceuticals is a priority sector that has become the focus of our investment marketing strategy,” Head of BKPM Franky Sibarani noted in a press release received here on Wednesday.

Sibarani said the company only exported its products to Indonesia and had appointed a local distributor in the country as its primary dealer.

“Looking at the developments in the market, the company has decided to make direct investments by establishing a pharmaceutical factory in Indonesia,” he remarked.

Furthermore, Sibarani pointed out that it was a strategic move to develop the pharmaceutical sector as it could reduce imports.

Sibarani emphasized that the BKPM fully supported the companys investment plan, so it could add a competitor to the drug manufacturers in Indonesia and could help lower the prices of drugs in the interest of the Indonesian society.

Official of Investment Promotion of the representative office of BKPM (IIPC) in Singapore Ricky Kusmayadi revealed that the investment interest had been identified, and the company had visited the IIPC office in Singapore to obtain information on the process of investing in Indonesia.

Kusmayadi noted that the confidence of Singaporean investors in Indonesia, as a production base in the ASEAN, had increased despite the gloomy condition of the global economy.

“We will continue to oversee the investment interest to be realized,” he said.

Singapore ranks first among the list of countries that have invested in Indonesia.

Along with Malaysia, Singapore was identified as a priority country for investment marketing, especially among the member countries of the ASEAN.

Investment marketing was conducted to improve the investment realization of ASEAN countries in 2015 that had increased by 15 percent to reach $9.1 billion compared to $7.93 billion in 2014.

In terms of investment commitment, the member countries of the ASEAN have recorded an increase of 79 percent to reach $22 billion in 2015 compared to $12.3 billion in the previous year.

Source: www.antaranews.com, 9 June 2016