Commission VI of the DPR RI Reviews Phapros, Encourages the Strengthening of National Pharmaceutical Industry Independence

SEMARANG, July 10, 2026 – PT Phapros Tbk, a leading pharmaceutical company in Indonesia, received a Specific Working Visit from Commission VI of the House of Representatives of the Republic of Indonesia (DPR RI) at the Simongan Factory, Semarang, on Friday (10/7). The working visit was also attended by BP BUMN (SOE Agency), PT Danantara Asset Management, PT Bio Farma (Persero), and PT Kimia Farma (Persero) Tbk as part of the supervision of state-owned enterprise (SOE) governance in the pharmaceutical sector to strengthen national pharmaceutical industry independence.

One of the focuses of the working visit was to evaluate the achievements of substituting imported medicine raw materials with domestic production within the Kimia Farma Group, while also reviewing the operational readiness and performance of Phapros as one of the strategic facilities playing a role in strengthening the independence of the national pharmaceutical industry.

Dr. Anggia Erma Rini, M.K.M., Chairperson of Commission VI of the DPR RI and Head of the Specific Working Visit Team to the Phapros Factory, stated that Indonesia's current dependence on imported pharmaceutical raw materials is still relatively high, posing a challenge in achieving national pharmaceutical independence. According to her, it is necessary to optimize the potential of local raw materials, including through the development of herbal-based raw materials and utilizing Indonesia's biodiversity supported by strong research, so that they can become alternatives to replace imported raw materials.

“Cross-ministerial synergy and pharmaceutical sector SOEs need to be strengthened, especially between the Ministry of Health, the Ministry of Industry, and Bio Farma Group, so that the policies taken truly support the use of domestic products. Furthermore, the use of nationally produced medicines in government programs needs to be increased. The government also needs to have accurate data regarding how large the portion of domestic medicine has been used in national health programs,” Anggia said.

According to her, Pharmaceutical SOEs must continue to improve their competitiveness. This is because competition in the pharmaceutical industry is increasingly fierce, so it is not enough to just rely on the existing market. Product innovation, new product development, and quality improvement must continue to be carried out to compete with imported products.

In this working visit, Commission VI of the DPR aims to assess the effectiveness of cross-SOE synergy between BP BUMN, Danantara Indonesia, and Bio Farma Group in asset management and investment financing for the upstream pharmaceutical industry. In addition, this visit also aims to identify structural constraints faced by the domestic pharmaceutical raw material industry, including limited economies of scale, technology, and human resources.

Through direct inspection and dialogue with relevant working partners to discuss various strategic steps, Commission VI also seeks to obtain a factual picture regarding the integration among stakeholders, ranging from SOE development policies at the central level, asset management by Danantara Indonesia, domestic production capacity, downstreaming of research and technology, to synergy between Pharmaceutical SOEs.

Strengthening the Finances of Pharmaceutical SOEs

On the same occasion, the Managing Director of Business at PT Danantara Asset Management, Febriani Eddy, stated that "The independence of the pharmaceutical industry must start with strengthening the company's financial condition. In 2025, there are 21 strategic programs of Danantara, including the restructuring program for Pharmaceutical SOEs which continues into the following year."

Furthermore, Febriani emphasized the importance of economies of scale in developing domestic medicine raw materials. According to her, efforts to realize the independence of the pharmaceutical industry need to be carried out gradually through a sustainable industrial ecosystem.

PT Phapros Tbk, as the main location for inspection during the Specific Working Visit of Commission VI of the DPR, has been operating in Semarang City since 1954 and currently produces more than two hundred types of pharmaceutical products, with its flagship product Antimo leading the market in its category. In addition to meeting domestic needs, Phapros conducts contract manufacturing collaboration and has pioneered exports to Cambodia since 2013, making its production facility relevant to be examined as part of the supply chain supporting national pharmaceutical independence.

During this working visit, a discussion was also held regarding the National Pharmaceutical Industry Resilience Strategy, presented by the President Director of PT Bio Farma (Persero), Shadiq Akasya. The event was also attended by the Deputy for SOE Value Enhancement of BP BUMN Endra Gunawan, President Director of PT Kimia Farma (Persero) Tbk Djagad Prakasa Dwialam, and President Director of PT Phapros Tbk Intan Abdams Katoppo.

As a subsidiary of PT Kimia Farma (Persero) Tbk, Phapros in the first quarter of 2026 recorded a net profit growth of IDR 761.5 million. This achievement serves as an indicator of the company's performance reinforcement in supporting the transformation of pharmaceutical SOEs while strengthening the competitiveness of the pharmaceutical industry.