Business Development Asia LLC

South East Asian Health News

ISSUE 6, APRIL 1998

INDONESIA

Astra Pharmaceuticals of Sweden plans to invest in a manufacturing plant in Indonesia as part of its long-term expansion program in Asia. This announcement came after the company’s donation of Rp1bn (US$120,000) to the Indonesian Government. (March 2^nd 1998)

Darya-Varia Laboratories, the Indonesian pharmaceutical unit of Hong Kong-based First Pacific Co., itself a subsidiary of the Indonesian Salim Group, reported a net loss of Rp100bn (US$12m). This amount includes a Rp56bn (US$7m) charge for unrealized foreign exchange losses and a provision of Rp31bn (US$4m) for the restructuring of manufacturing operations. Darya-Varia sales fell 3% in 1997 due to the economic turmoil, while operating expenses jumped 65% due to higher cost of raw materials priced in US dollars. (March 5^th 1998)

The Ministry of Health has announced that it will provide assistance to private drug companies so they can continue production of medicines. The Government had earlier offered subsidies to state pharmaceutical companies and is now extending the program to include private companies. The subsidies will ease the cost of importing raw materials by covering the difference between the actual exchange rate and the exchange rate set by the Government of Rp5,000 per US$. To date, the government has provided US$140m in pharmaceutical subsidies. (March 27^th 1998)