Bio Farma Chief Opens Up on Transformation and Business Development

Jakarta, CNBC Indonesia — The Chief Executive of Bio Farma, Shadiq Akasya, has explained that the state-owned enterprise (SOE) pharmaceutical holding company was formed in 2020. However, at that time Indonesia and the world were preoccupied with the COVID-19 pandemic, including Bio Farma itself, which was then focused on securing vaccines.

“So the transformation process continued to roll on during that period. The pharmaceutical holding was formed in 2020, and in 2021 and 2022 we were still occupied with that issue. That is why, starting in 2023, we have focused more on how to reorganise this company,” he explained to CNBC Indonesia on Monday (7/9/2026).

According to him, Bio Farma was then under the SOE Ministry, whereas it now falls under Danantara. At the time, the SOE Ministry agreed that what needed to be done was transformation, including forming a business reorientation so that the business fundamentals had to be fixed first.

“Then financial restructuring. Both of these are areas where the pharmaceutical industry — the companies under Bio Farma — have indeed been making considerable efforts,” he affirmed.

Shadiq also explained that there were financial problems at the time, so without fixing the fundamentals, results would not be achieved. For that reason, Bio Farma also carried out two business reorientation programmes.

The first was to make the business more effective and efficient. The second was to find a more effective and efficient business model so that, ultimately, money would sustain the corporate business.

“We also approached creditors. We carried out restructuring there. Then capital injection was needed. A shareholder loan was also needed. We undertook this financial restructuring. What could we do from the holding side? For instance, we made efforts to secure financing,” he detailed.

Shadiq also affirmed that the company used many other instruments, including supply chain financing and project financing, to improve working capital.

Bio Farma itself still distributes its vaccines together with institutions such as UNICEF, the Pan American Health Organization (PAHO) and the Global Alliance for Vaccines and Immunization (Gavi), as well as through bilateral cooperation with export destination countries.