Jakarta (ANTARA) - The Finance Ministry plans to inject Rp2 trillion in funds to state-owned pharmaceutical holding company PT Bio Farma this year for the procurement of COVID-19 vaccines, an official said.
The plan to release funds to the Bio Farma Group surfaced after the State Enterprises Ministry, the Finance Ministry, and Commission XI of the House of Representatives (DPR) conducted a study and saw the company was in urgent need of additional capital.
“During the last days of discussion at the DPR RI’s budget committee, we came up with a proposal to add PMN (state capital participation) to Bio Farma Group,” director general of state wealth at the Finance Ministry, Isa Rachmatawarta, said at an online discussion here on Friday.
The fund injection will come in the form of state capital participation for the procurement of COVID-19 vaccines and the development of health infrastructure and facilities, he informed.
"That is what we have studied. We have considered it. It has so far been positive. In fact, we consider to speed it up," he added.
The fund injection of Rp2 trillion will be completely transferred to Bio Farma as a state-owned pharmaceutical holding company. The government will then delegate authority to Bio Farma to distribute funds to other state-owned pharmaceutical companies, PT Kimia Farma Tbk and PT Indofarma Tbk, Rachmatawarta said.
"I don't remember how much will exactly go to Bio Farma and Kimia Farma. But in general, Bio Farma will be in charge of the project, which also involves Kimia Farma and Indofarma," he added.
Although this year only has two months left, he said he is optimistic about funding to Bio Farma being incorporated into the 2020 state budget.
“If possible, we can add it to the 2020 state budget because it is relevant to COVID-19 handling. So, we will likely propose it in 2020,” he said. (INE)
EDITED BY INE