Indofarma Remains Optimistic About Profitability Despite US Dollar Pressure

State-owned pharmaceutical company PT Indofarma Tbk (INAF) remains optimistic about recording a net profit in 2026, despite pressure from the strengthening of the United States (US) dollar against the rupiah. The pressure arises as 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 this year’s profit target, although there is indeed a condition of the rupiah exchange rate weakening against the US dollar, and we know that this will certainly increase the cost of goods,” said Indofarma President Director Sahat Sihombing during a Public Expose at the Indonesia Health Learning Institute (IHLI) Bio Farma Group in Jakarta on Thursday. In line with this, Sahat confirmed that the company will continue to maintain communication with stakeholders abroad, especially raw material supplier vendors. Additionally, he said the company will negotiate so that the prices or price increases that occur remain within a tolerance level that the company has planned for. “Because the source of the raw materials is indeed not yet available domestically, that is a challenge. So, we are leveraging our good relationships with them, to see how they can continue to support Indofarma amidst the rupiah’s weakening,” said Sahat. To optimise performance in 2026, he said the company will maximise exports, which recorded growth of 11.9 per cent year-on-year (yoy) in 2025. On 20 June 2026, the company exported pharmaceutical products to Afghanistan, with five containers shipped from the company’s production facility in Cibitung. “Hopefully, we will also receive orders again for exports to Afghanistan, or perhaps broaden and expand to countries around Afghanistan,” he said. On the same occasion, the company held its Annual General Meeting of Shareholders (RUPST), which approved the Financial Report for the 2025 fiscal year. Throughout the 2025 fiscal 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.