October 18, 2023

Developing Sustainable Innovations, Phapros Collaborates with Cross-Sectoral Strategic Partners

JAKARTA, October 18, 2023 - PT Phapros Tbk, which is part of the State-Owned Pharmaceutical Holding, is committed to making innovation the key to the company's progress. According to the Corporate Secretary of PT Phapros Tbk, Zahmilia Akbar, Indonesia has vast resources that can be utilized, especially through technology. Despite initial challenges in implementation, it has become a source of pride for the company.

"This has a very positive impact on our national economic growth. Furthermore, Phapros collaborates with various other industries, from small and medium-sized enterprises to large-scale industries that can support the sustainability of downstream research processes conducted on medical equipment, raw materials, and herbal plants that will later become Phapros' commercial products. Of course, all of this requires technological innovation," she said in an online talk show titled "Pharmaceutical Sector Innovation in Supporting National Economic Growth" hosted by Ruang Saham on Tuesday, October 17.

The event, hosted by Ruang Saham's founder, Ervin Kusuma Winata, discussed how Phapros, in its business journey, can contribute to Indonesia's development. According to Zahmilia, the key to innovation lies in cross-sectoral cooperation, including research institutions and universities.

"We have several strategic collaborations with renowned universities in Indonesia, such as Hasanuddin University, Airlangga University, and Gadjah Mada University. For Gadjah Mada University, one of the collaborations involves downstreaming medical equipment, including a device to remove fluids from the heads of hydrocephalus patients, called Inashunt."

"Many downstream research proposals have been offered to Phapros. For us, cross-sectoral collaboration must also involve other industries, so we can build a stronger and healthier ecosystem," she emphasized.

As a state-owned company, the innovations undertaken must be based on national interests. The Indonesian government's regulatory policy requiring the industrial sector, especially the pharmaceutical industry, to use Domestic Component Levels (TKDN) to reduce import dependency has also been implemented by Phapros.

"As we know, 90% of pharmaceutical raw materials are still imported from China, India, Europe, and America because there are not many local drug raw material producers in Indonesia. Therefore, we are trying to use local raw materials for certain products. Even for Phapros product packaging materials, more than 80% are made from local materials," she explained.

Phapros also supports the government's program related to global commitments to reduce carbon emissions by transitioning its business model to green manufacturing. Through technological innovation, the company has initiated changes in the production process from raw materials to finished products.

"The pharmaceutical industry, like any other industry, can release waste into the environment, including smoke and chemical discharges. For the past eight years, we have implemented several sustainability programs. Since 2019, Phapros has been using solar panels for renewable energy. We also use Compressed Natural Gas (CNG) to replace the oil fuel that has been used. In terms of CSR, we promote reforestation programs, such as in Semarang, where we have initiated a mangrove planting movement at several points prone to flooding and erosion," she explained.