Bio Farma Becomes Shareholder of Kimia Farma, Indonesia Farma
In a bid to strengthen the capital structure and increase the business capacity of state medical company PT Bio Farma, the Government has decided to increase equity participation in the Company.
Based on these considerations, President Joko “Jokowi” Widodo on 15 October 2019 had signed Government Regulation (PP) Number 76 of 2019 on Additional State Capital of the Republic of Indonesia into PT Bio Farma.
The addition of state capital as referred to comes from the transfer of all Series B shares owned by the Republic of Indonesia to:
a. PT Kimia Farma Tbk, whose status as a Limited Company is determined based on Government Regulation Number 16 of 1971 on the Transfer of the Form of State Pharmaceutical and Medical Device Company “Bhinneka Kimia Farma” to become a Limited Company; and
b. PT Indonesia Farma Tbk, whose status as a Limited Company is determined based on Government Regulation Number 34 of 1995 on the Transfer of the Form from General Company “Indonesia Farma” to become a Limited Company.
The addition of state capital as referred to as much as: a. 4,999,999,999 (four billion nine hundred ninety nine million nine hundred ninety nine thousand nine hundred ninety nine) Series B shares in the PT Kimia Farma Tbk Limited Company; and b. 2,499,999,999 (two billion four hundred ninety nine million nine hundred ninety nine thousand nine hundred ninety nine) Series B shares in PT Indonesia Farma Tbk (Persero), have been placed and fully paid by the State,” reads Article 2 Paragraph (1) of the PP.
The value of state capital addition, according to the PP, is determined by Minister of Finance based on a proposal from Minister of State-Owned Enterprises (BUMN).
“With the transfer of Series B shares, the State exercises control over PT Kimia Farma Tbk and PT Indonesia Farma Tbk through dual color Series A shares with authority as stipulated in the Articles of Association,” Article 3 of the PP reads.
The results of the addition of state capital as referred to, according to this PP, are: a. Company Status of PT Kimia Farma Tbk and PT Indonesia Farma Tbk turned into a limited liability company which is fully subject to Law Number 40 of 2007 on Limited Companies; and b. PT Bio Farma became a Shareholder of PT Kimia Farma Tbk and PT Indonesia Farma Tbk.
“This Government Regulation shall apply as of the date of its promulgation,” said Article 6 of the PP, which has been promulgated on 17 October 2010 by Acting Minister of Law and Human Rights Tjahjo Kumolo. (Pusdatin / ES)
Translated by: Estu Widyamurti
Edited by: Yuyu Mulyani