JAKARTA: State-owned lender Bank Mandiri has channeled Rp 1 trillion (US$73.09 million) worth of working loans to state pharmaceutical company Kalbe Farma. The credit is aimed at helping to fulfil the company’s cash flow needs in providing medicines for the country.
Bank Mandiri is also providing a treasury line facility worth $8 million that Kalbe Farma can use to meet its foreign exchange needs in the procurement of raw materials for drug manufacturing.
Bank Mandiri corporate secretary Rohan Hafas said the channeling of the credit facility was part of the company’s commitment to supporting the government in developing the health sector, especially through financing schemes for companies in the health and pharmaceutical industries.
“We hope that this partnership can give as much benefit as possible to both parties and be a contribution to support national economic growth,” Rohan said as quoted by kompas.com in Jakarta on Sunday.
He added that the credit provided for Kalbe Farma was short-term financing and would take effect for one year.
The treasury line facility, which Kalbe Farma could use for hedging needs, would also take effect for one year, he said.
“Indonesia’s pharmaceutical sector needs to be continuously supported due to a high demand for medicines in the country, along with the growing population,” said Rohan.
In 2015, Bank Mandiri channeled Rp 2.45 trillion worth of financing to the pharmaceutical sector, up by 40.80 percent from Rp 1.74 trillion in the previous year.
