Indofarma Remains Optimistic About Profitability Despite US Dollar Pressure

Jakarta (ANTARA) - The state-owned pharmaceutical company PT Indofarma Tbk (INAF) remains optimistic that it can record a net profit in 2026, despite being pressured by the strengthening of the US dollar against the Rupiah.

This pressure arises because approximately 70 per cent of the company’s raw materials are imported from various other countries, with payments made in US dollars.

“We remain optimistic about our profit target for this year, even though there is indeed a condition of Rupiah weakening against the US dollar, which we know will certainly increase the cost of goods sold,” said the President Director of Indofarma, Sahat Sihombing, during a Public Expose at the Indonesia Health Learning Institute (IHLI) Bio Farma Group, Jakarta, on Thursday.

In conjunction with this, Sahat ensured that the company will continue to maintain communication with overseas stakeholders, particularly raw material suppliers.

Additionally, he stated that the company will conduct negotiations to ensure that any price increases remain within the tolerance levels already planned by the company.

“Since the sources (of raw materials) are not yet available domestically, it remains a challenge. Therefore, we are leveraging our good relationships with them to see how they can continue to support Indofarma amidst the weakening of the Rupiah,” said Sahat.

To optimise performance in 2026, he noted that the company will maximise exports, which recorded a growth of 11.9 per cent year-on-year (yoy) in 2025.

On 20 June 2026, the company exported pharmaceutical products to Afghanistan, consisting of five containers from the company’s production facility in Cibitung.

“Hopefully, we will also receive orders for exports to Afghanistan again, or perhaps expand to countries surrounding Afghanistan,” he added.

During the event, the company held its Annual General Meeting of Shareholders (AGMS), which approved the 2025 Financial Statements.

Throughout the 2025 financial year, the company recorded net sales of Rp151.5 billion. Although it still recorded a loss, the company significantly reduced its current period loss by 76.7 per cent to Rp77.9 billion, compared to Rp334.5 billion in 2024.