State-owned plantations eyes IDR5 trillion in profits

Kamis, 08 Maret 2012 | 09:53

The net profit of state-owned plantation companies is targeted to reach IDR5 trillion throughout this year or 42.58% higher compared to IDR3.5 trillion a year earlier.The state-owned plantation companies managed to book total revenue of IDR45 trillion throughout last year, PT Perkebunan Nusantara (PTPN) III's President Director Magananda Daryono said.

“We haven’t set the target for this year’s revenue. Such net profit is set to increase IDR5 billion as we begin the cooperation with other state-owned plantation companies,” he said in the inauguration of the SOE new board of directors yesterday.

Although the holding company has not been established, PTPN III will begin to cooperate with other state-owned plantation companies in form funding assistance and synergy of marketing process.

PTPN III, which is chaired by former Deputy of SOE for Primary Industry Business, is seeking for bank loan and equity at least IDR5 trillion in the first year. The company will use it for the expansion of other SOEs like PTPN I, PTPN II, PTPN V, and PTPN XIV.

Such expansion includes developing oleo chemical and cooking oil production, which has been initiated by PTPN VI.

Besides developing its own plantation, PTPN III will provide assistance to market products from other SOEs, including Deli tobacco and strawberries.

The holding company, which will have a total assets of IDR50 trillion, also plans to add its land ownership in other region outside Java Island as much as 300,000 hectares in the next 2 years. Thus, it will own a total of 1.4 million ha in 2014.

Apart from palm and rubber commodities, the holding plantation company will also develop sugar production to meet demand for such commodities.

Earlier, Deputy of SOE for Primary Industry Business Muhammad Zamkhani has inducted Megananda as the new President Director of PTPN III. Megananda has previously served as deputy assistance in the Ministry of SOEs.

Besides Megananda, other new president directors were Erwin Nasution (PTPN IV), Ismed Hasan Putro (PT Rajawali Nusantara Indonesia), and Pontas Tambunan (PTPN V General and HR Director). (T06/NOM)

Local producers dominates pharmaceutical market

Oleh Demis Rizky Gosta, Yudha Prawira

JAKARTA: Local industries were still dominating the pharmaceutical market worth IDR43.08 trillion in 2011. Seven of ten drug makers recording the largest sales volume in last year were local companies.

IMS Health’s data shows PT Sanbe Farma recorded the largest turnover in 2011, controlling 7.1% of total national market that boasted a sales value of IDR1.94 trillion.

Came in second, PT Kalbe Farma posted sales of IDR1.84 trillion with market share of around 7%, followed by PT Dexa Medica, with turnover of IDR1.24 trillion.

Chairman of International Pharmaceutical Manufacturers Group (IPMG) Indonesia Lutfi Mardiansyah explained local pharmaceutical producers dominate market of branded-generic and over the counter (OTC) medicines.

Market of prescription drugs last year recorded sales of IDR25.04 billion or 58% of national turnover, while sales of over the counter medicines reached to IDR18.03 trillion or 42%.

In addition, the sales growth of local pharmaceutical industries increased more rapidly than the sales of multinational industries.

IPMG projects the turnover of national pharmaceutical industries to grow 12%-13% to IDR48.61 trillion this year.

Encouraged by purchasing power

The growth of medicines consumption will be along with the higher purchasing power of middle to high-class people and the implementation of national social insurance system (SJSN) in 2014.

“Approximately, 87 million of Indonesia’s population is projected to move up to the middle class in 2016 leading to increasing consumption per capita on healthcare products and services,” he said.

Today, spending of Indonesia’s people for healthcare services and products goes only to 2.4% of total gross domestic product by US$44 per capita or the lowest spending among other spending of Southeast
Asian countries.

Vice President of Healthcare Frost & Sullivan Asia Pacific Rhenu Bhuller predicts the healthcare spending in Indonesia to reach US$47 billion or IDR432 trillion in 2020.

The higher spending is mainly triggered by the growth of middle-class society and the increase of old-age population.

The household income of US$5,000 per year is projected to escalate 20.8% per year through 2014, while the household income of more than US$10,000 may grow 22.8% per year in the same period.

The condition may encourage disposable income that will increase healthcare spending of people in Indonesia. (t01/msw)

By Achmad Puja Rahman Altiar