The Chinese state-owned Silk Round Fund (SRF) and Indonesia’s sovereign fund INA have reportedly agreed to invest in two Indonesian pharmaceutical companies in a deal valued at around IDR 1.86 trillion (USD 120 million). The target companies are PT Kimia Farma Tbk (IDX: KAEF) and its subsidiary, PT Kimia Farma Apotek. The agreement was announced on the sidelines of the G20 summit held in Bali this week.
Background on Silk Round Fund
Founded in Beijing in 2014, the Silk Round Fund (SRF) is a state-owned investment fund backed by China Investment Corp., the Export-Import Bank of China, and the China Development Bank. The fund focuses on investment opportunities in countries along the “One Belt, One Road” initiative, an economic development strategy primarily covering Eurasia. In July this year, SRF and INA signed an investment framework deal to invest up to RMB 20 billion (USD 2.8 billion) in Indonesian target companies.
PT Kimia Farma Profile
PT Kimia Farma Tbk is a leading Indonesian state-owned pharmaceutical company with a diverse business portfolio that includes pharmaceutical manufacturing, distribution, marketing, retail pharmacy, and health clinics. The company specializes in small-molecule drugs and generics, catering to a wide range of healthcare needs in Indonesia. The investment from SRF and INA is expected to support Kimia Farma’s expansion and development in the region.-Fineline Info & Tech
