Phapros Prepares Strategy to Face Rising Raw Material Prices Due to Strong Dollar

PT Phapros Tbk has prepared a number of strategies to address the rising cost of pharmaceutical raw materials amid the geopolitical situation and the strengthening of the US dollar against the Rupiah. Director of Finance, Risk Management and Human Resources at PT Phapros, Ferdinand Troedu, acknowledged that the impact is not limited to the pharmaceutical industry but affects nearly all sectors. “For Phapros, we see that the impact is already present and indeed occurring, as the majority of our raw materials are still imported,” he said during a Phapros media gathering themed ‘Weaving Harmony, Strengthening Collaboration’ on Saturday (20/6/2026). He explained that imported raw materials fall into two categories, direct and indirect, and both are experiencing price increases. “To address this, we are pursuing various methods, one of which is direct renegotiation or reprofiling of raw material suppliers,” he stated. According to him, price renegotiation can be achieved through long-term contract schemes or by increasing contract volumes. “The second approach is that we are also looking for alternative supply sources. So, we seek alternative options to allow for bargaining. Thirdly, we are implementing efficiency measures in production,” he said. However, he clarified that efficiency does not mean reducing production, but rather focuses on how to reduce costs through more efficient production processes. Meanwhile, Director of Production at PT Phapros, Ida Rahmi Kurniasih, added that Ministry of Health policies are also providing room for the pharmaceutical industry to cope with the impacts of the recent global situation.