LPEI and Bio Farma Partner to Boost Indonesia's Pharmaceutical Exports to 160 Countries

Jakarta, 10 December 2024 – The Indonesian Export Financing Agency (LPEI/Indonesia Eximbank) has provided PT Bio Farma (Persero) with an Rp300 billion export working capital credit facility as part of the Pharmaceutical and Medical Devices Industry Special Export Assignment (PKE) program. This funding underscores LPEI's commitment to enhancing Indonesia's pharmaceutical sector and improving its global competitiveness.

The credit agreement marks a significant step in strengthening collaboration between LPEI and Bio Farma, aimed at developing Indonesia’s pharmaceutical industry and boosting the international competitiveness of its products. According to the Ministry of Industry, Indonesia's pharmaceutical and natural medicine exports reached USD 639.42 million (IDR 9.9 trillion) between January and September 2024.

The agreement was signed by Nurrohmanudin, Head of Business Division III at LPEI, and IGN Suharta Wijaya, Director of Finance and Risk Management at Bio Farma. The ceremony was witnessed by Anton Herdianto, Acting Managing Director of Business at LPEI, Maqin U. Norhadi, Managing Director of Business Development, and Shadiq Akasya, President Director of Bio Farma.

Anton Herdianto highlighted that the credit agreement reinforces LPEI’s role in advancing Indonesia's pharmaceutical industry through the PKE program. He also noted Bio Farma’s pivotal role in vaccination efforts and its expanding presence in international markets, which reflects the global trust in its vaccine products.

Herdianto further emphasized that the PKE program is a key example of Indonesia's economic diplomacy, aiming to strengthen local industries and enhance their global competitiveness. He added that the partnership with Bio Farma represents a vital step towards achieving self-reliance in Indonesia's pharmaceutical sector.

Bio Farma President Director Shadiq Akasya reaffirmed the company’s commitment to producing high-quality vaccines and supporting Indonesia's national health security. As the largest vaccine manufacturer in Indonesia, Bio Farma also plays a critical role in the national immunization program.

Ranked 9th in the WHO’s 2023 global vaccine market report, Bio Farma is a major global player, distributing vaccines to over 160 countries and standing as the fifth-largest supplier through the WHO. The company has an annual production capacity of 3.1 billion doses, with approximately 52% of its output being exported. “This demonstrates Bio Farma’s dedication not only to the domestic market but also to meeting global demand,” said Shadiq.

LPEI has allocated Rp8.7 trillion across eight active PKE programs, including PKE Aviation, PKE Kawasan, PKE Mandalika Tourism, PKE Trade Finance, PKE UKM, PKE Transportation Equipment, PKE Super Priority Tourism Destinations, and PKE Pharmaceutical and Medical Devices Industry.

Since the issuance of the Minister of Finance Decree (KMK), the PKE program has disbursed IDR 19.9 trillion, benefiting 231 businesses. As of 30 November 2024, new disbursements totaled IDR 6.6 trillion, exceeding the target of IDR 5.5 trillion by 121%.