Aventis invests $5m in RI unit
Adianto P. Simamora, The Jakarta Post, Jakarta
PT Aventis Pharma, the largest foreign pharmaceutical company operating in Indonesia, said it was investing US$5 million to upgrade its production facility in a bid to strengthen its operations here.
President of Aventis Pharma Homayoun Madjrouh said on Wednesday that the new investment would help the company boost its production capacity by more than 30 percent to meet rising demand both in the domestic and export market.
"We do believe that demand in pharmaceutical products will continue to increase both in the domestic and export market," Homayoun told reporters.
The project is scheduled for completion in August 2003.
The company, which is located in the Pulo Mas area of North Jakarta, focuses on cardiology, oncology, infectious diseases, arthritis, allergies and respiratory disorders, diabetes and disorders related to the central nervous system.
The company said that around 90 percent of its drugs were for the domestic market, while the remaining 10 percent were destined for the overseas market.
Their main export markets were in Pakistan, Cambodia, Vietnam, Malaysia and Singapore with total sales of $5 million last year.
Aventis said that its total sales reached Rp 400 billion ($45 million) in 2001, an increase of 14 percent from the previous year.
The company expected sales this year to be even higher.
Aventis Pharma is a company resulting from the merger of PT Hoechst Marion Roussel Indonesia and PT Rhone-Poulenc Rorer last year.
With the merger, Hoechst Marion Roussel Indonesia and Rhone- Poulenc Rorer were dissolved and all their production activities were taken over by Aventis.
Homayoun also expressed his confidence over the investment climate in Indonesia.
"To the people of Indonesia, our $5 million investment shows our confidence in the country as this is a long-term investment in the future. We believe in our role in the future of Indonesia and are making proactive investment that reflect our long-term vision," Homayoun said.