VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Indonesia's largest state-owned pharmaceutical company, PT Kimia Farma (Persero) Tbk, has expanded its business to the Middle East by acquiring 60 percent stake in Dawaa Medical Limited Company (Dawaa), a subsidiary of Saudi Arabia-based Marei Bin Mahfouz (MBM) Group.

"Kimia Farma`s capital investment in Dawa reaches 38 million riyals, or equals to Rp133 billion, which is used for the development of the company`s business," President Director of Kimia Farma Honesti Basyir said in Jakarta on Tuesday.

The signing of the shareholder agreement was marked by the establishment of a joint venture company (JV) of Kimia Farma Dawaa between Kimia Farma's President Director Honesti Basyir and CEO of MBM Mahfouz Bin Marei Bin Mahfouz.

Basyir stated that the cooperation was a sign of an effective operation of Kimia Farma Dawaa in March 2018.

He added that Kimia Farma`s business expansion abroad, especially in Saudi Arabia and countries in the Middle East and North Africa (MENA), is taken as a business and market development strategy to increase the benefits for stakeholders.

"As a state-owned pharmaceutical company, Kimia Farma is not only aimed at fulfilling the needs of Indonesians inside the country but also those living in or traveling to Saudi Arabia.

This business expansion is also supporting the Government of Indonesia`s program to serve the health service needs of Hajj pilgrims and Indonesia's Umrah, which increases every year and serves Indonesian citizen who work in Saudi Arabia.

Dawaa currently has 31 outlets of apothecary networks, including 10 outlets in Mecca and 21 outlets in Jeddah, In conducting the pharmaceutical wholesales, cosmetics, and medical devices. Besides this, there are also two distribution centers in Mecca and Jeddah.

"We expect to add at least 90 outlets after establishing the Kimia Farma Dawaa," he remarked.

Kimia Farma chose Saudi Arabia as the entrance for market penetration into the Middle Eastern region because greater prospects are available in Saudi Arabia, with market value estimated at US$20 billion in 2020.

Meanwhile, CEO of MBM Marei Bin Mahfouz revealed that Kimia Farma Dawaa will initially focus on distribution and retail pharmacies, including opening outlets near the Grand Mosque in Mecca and Nabawi Mosque in Medina and supporting health services for Hajj and Umrah pilgrims.

"We hope this cooperation can affect the health industry in Saudi Arabia and provide the people in Saudi Arabia with health services," he pointed out.

Later, Kimia Farma Dawaa will build a pharmaceutical factory in Saudi Arabia.

"Besides supplying pharmaceutical products to the Middle East market, the production of pharmaceutical factory Kimia Farma Dawaa will also be exported to countries in African region," he noted. (ANTARA)

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