State firms ink agreement to build paracetamol raw material plant

Jakarta (ANTARA) – State-run pharmaceutical firms PT Kimia Farma Tbk (Persero) and PT Kilang Pertamina Internasional (PT KPI) signed a cooperation agreement to produce raw material for paracetamol to support self-reliance in the national pharmaceutical industry.

The two state-run companies have inked a Head of Agreement (HoA) on a business cooperation scheme based on the joint study encompassing the supply of benzene as raw material, off-take plan, transaction scheme and commercial evaluation, and project development strategy.

Deputy Minister of State Enterprises Pahala Nugraha Mansury, in a statement here on Friday, lauded the cooperation to build a pharmaceutical plant to produce raw material for paracetamol, with an annual capacity of 3,800 tons.

Mansury noted that the cooperation is expected to support the domestic pharmaceutical industry’s self-reliance, as currently some 95 percent of the medicine raw material was imported.

“We can learn from the COVID-19 pandemic that health is an inseparable capital to recover the national economy. However, we have to understand that until now, 95 percent of the medicine raw material was still imported,” Mansury stated.

PT KPI is a sub-holding of state-run oil company PT Pertamina in the refinery and petrochemical sector.

President Director of Pertamina Nicke Widyawati remarked that under the cooperation, benzene and propylene produced from its Refinery Unit IV in Cilacap will be processed further into para aminophenol (PAF) as raw material of the pharmaceutical products, including paracetamol.

“The cooperation will boost synergy and collaboration among state-run enterprises in the areas of business, research and technology, and professional human resource development,” she noted.

Support from all stakeholders is deemed necessary to create a conducive ecosystem for development of the petrochemical and pharmaceutical industry.

Director of Digital Healthcare PT Bio Farma (Persero) Solehudin Al Ayubi noted that the holding company in the pharmaceutical industry had designed the roadmap to reduce imports of raw material.

It has improved the value chain ecosystem in the healthcare industry through establishment of the medicine raw material firm PT Kimia Farma Sungwun Pharmacopia.

Source: Antara News

Internal Affairs