Map of the Strength of Indonesia's Pharmaceutical Giants: Who is Healthy, Which are Still Ailing?
The rise in global oil prices has also impacted product prices, for example, the increase in packaging costs such as plastics, which is one of the main derivatives most affected by the rise in fuel costs. From the delivery and receipt side, it is also impacted by the soaring transportation costs.
In addition, the significant rolling weakening of the rupiah exchange rate from Rp16,400 in May 2025 to Rp17,400 in May 2026 has put serious operational pressure on the pharmaceutical industry in Indonesia.
These macroeconomic conditions directly affect the cost structure of issuers, given that the domestic health sector still has a very high dependence on imports of drug raw materials.
The surge in cost of goods sold has become the main obstacle that must be navigated by company management. If companies struggle to pass on these cost increases to end consumers through product price adjustments, gross and net profit margins will automatically be eroded.
Amid these challenges, the performance of issuers is greatly influenced by efficiency strategies and the strength of the product portfolio they possess.
As an illustration, PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) with flagship lines such as Tolak Angin and Kuku Bima has proven more resilient because the supply of herbal raw materials is mostly sourced domestically.
Meanwhile, business entities like PT Kalbe Farma Tbk (KLBF), which distributes consumer products such as Promag and prescription drugs, the issuer is currently implementing tight operational cost controls to maintain profitability.
The following is a detailed breakdown of net profit performance from issuers that managed to record profits in the full-year 2025 financial reports, presented in the first group.
Net Profit Performance 2024 vs 2025
On the other hand, exchange rate pressures and interest burdens have set back some other issuers, especially those with massive liability structures.
PT Kimia Farma Tbk (KAEF), which focuses on providing generic drugs and clinic services, has indeed managed to suppress its operational loss figures, but the large debt burden still constrains the company’s bottom line.
Similarly, several mid-tier issuers have had to accept a turnaround to record losses due to their inability to stem the soaring cost of goods.
The following is a continuation of the performance data for issuers that achieved profits, combined with a series of issuers that recorded net losses along with their annual percentage movements.
Current Issuer Valuations
Shifting to the market valuation perspective, adding indicators of margin ratios and solvency will provide a more precise basis for analysis regarding current share prices.
The Net Profit Margin (NPM) indicator serves to measure the issuer’s ability to convert revenue into pure profit after deducting all taxes and expenses, including exchange rate differences. The Return on Equity (ROE) indicator maps how effectively the company manages invested capital.
The issuer’s financial risk level can be monitored through the Debt to Equity Ratio (DER), where soaring figures indicate high liabilities that must be managed amid challenging interest rate and exchange rate climates.
Share price assessment itself will be represented through Price to Earnings (PER) and Price to Book Value (PBV), paired with the EV/EBITDA ratio to view the company’s value from the perspective of core operational cash.