Kimia Farma Responds to Arbitration Defeat

PT Kimia Farma Tbk (KAEF) has spoken out regarding the business dispute ruling between Indonesia Investment Authority (INA) and Silk Road Fund Co Ltd (SRF) against the company and PT Kimia Farma Apotek (KFA) at the Singapore International Arbitration Center (SIAC). The dispute over investment funds and costs amounting to Rp 2.2 trillion was filed with the SIAC on 23 October 2024.

KAEF Corporate Secretary Ida Rasita did not disclose the details of the ruling. She confirmed that KAEF is conducting a comprehensive review of the arbitration award and coordinating with all stakeholders. “This is in order to seek the best solution to protect the interests of the Company and shareholders as stipulated in the prevailing laws and regulations, to ensure the Company can continue providing healthcare services to the public,” she said in a disclosure to the Indonesia Stock Exchange on Sunday, 28 June 2026.

In carrying out its business activities in the health sector, Ida assured that KAEF submits to, complies with, and adheres to the applicable legal provisions and regulations. KAEF maintains a cooperative stance towards the relevant authorities in accordance with the principles of good corporate governance. “The Company ensures that all operational activities, including manufacturing, distribution, pharmacies, and healthcare services across the entire Kimia Farma network, continue to run in serving the public’s needs in the health sector,” Ida said.

Previously, three Tempo sources from State-Owned Enterprises and the government stated that the Singapore arbitration tribunal had ruled in favour of INA and SRF in the dispute in mid-June 2026. The dispute originated from financial statement misstatements at KFA in 2021 and 2022, as well as the financial statements of PT Kimia Farma Diagnostik (KFD). Consequently, PT Bio Farma (Persero) and KAEF are jointly and severally liable to return the funds and investment of INA and SRF, amounting to approximately Rp 2.2 trillion, as they acted as guarantors in this dispute.