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Kimia Farma

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Corporate brand

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Indonesian state-owned pharmaceutical manufacturer, distributor, and pharmacy operator.

Last updated August 21, 2026

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Overview

Kimia Farma is an Indonesian pharmaceutical company with roots extending to the Dutch colonial period and a business spanning medicine production, pharmaceutical distribution, and retail pharmacy services. Its corporate history is commonly traced to 1817, when a pharmacy business was established in the Dutch East Indies. The modern organization, however, was formed through a series of nationalizations, consolidations, and changes in legal status after Indonesia became independent. In 1957, the Indonesian government nationalized several Dutch-owned pharmaceutical and chemical businesses. The enterprises brought under state control included pharmaceutical trading companies in Jakarta, a quinine factory in Bandung, an iodine operation in Mojokerto, and a medical-bandage manufacturer in Surakarta. In 1968, these nationalized businesses were reorganized into a group of state pharmaceutical companies. The reorganization created several entities with specialized regional and product responsibilities, including pharmaceutical, quinine, health-product, and medical-device operations. A further consolidation took place in January 1969, when the state pharmaceutical companies were merged into PNF Bhineka Kimia Farma. In August 1971, the enterprise was converted into a state-owned limited-liability company and became PT Kimia Farma (Persero). This transition established the corporate structure associated with the Kimia Farma name in the modern Indonesian pharmaceutical sector. Following the Asian financial crisis of the late 1990s, Indonesia pursued privatization and capital-market reforms involving a number of state-owned enterprises. Kimia Farma was included in this process in 2000. In 2002, the company established separate subsidiaries for pharmacy operations and pharmaceutical trading and distribution. The same year, PT Kimia Farma Tbk became a publicly listed company through listings on the Jakarta Stock Exchange and the Surabaya Stock Exchange, which were later consolidated into the Indonesia Stock Exchange. Kimia Farma's activities cover several stages of the healthcare supply chain. Its manufacturing network has included facilities in Jakarta, Bandung, Semarang, Watudakon in East Java, and Tanjung Morawa in North Sumatra. These sites have manufactured or processed medicines, active or intermediate pharmaceutical materials, quinine and its derivatives, iodine, antibiotics, injections, tablets, capsules, syrups, creams, eye drops, cosmetics, vegetable oils, and medical devices. The company has also operated an extensive pharmacy network, giving it a direct-to-consumer channel in addition to institutional and distribution businesses. The company has traditionally positioned itself as an integrated national healthcare enterprise: a state-linked producer and distributor with retail access through pharmacies. Its portfolio includes prescription medicines, over-the-counter products, health-related goods, cosmetics, and medical devices. The combination of manufacturing, distribution, and retail distinguishes Kimia Farma from a narrowly focused drug producer and supports its role in Indonesia's domestic pharmaceutical infrastructure. Kimia Farma has also considered regional expansion. In 2012, the company disclosed plans to open a pharmacy branch in Malaysia, although the available reference material does not establish whether that plan was completed or became a sustained international operation. The company remains primarily identified with the Indonesian market. Its public-company identity, historical state ownership, manufacturing base, and pharmacy network make it one of the country's most prominent domestic pharmaceutical brands.

History

Kimia Farma's historical lineage is traced to 1817, when a pharmacy business operated in the Dutch East Indies. The company in its present institutional form emerged much later through the Indonesian state's nationalization and consolidation of pharmaceutical businesses. In 1957, the Indonesian government nationalized several Dutch-owned pharmaceutical and chemical enterprises. The nationalized portfolio included pharmaceutical trading companies in Jakarta, the Bandoengsche Kininefabriek in Bandung, an iodine business in Mojokerto, and a medical-bandage manufacturer in Surakarta. These operations represented different parts of the pharmaceutical and healthcare supply chain, including medicine trading, quinine production, iodine processing, and medical supplies. Government Regulation No. 69 of 1968 reorganized the nationalized businesses into a collection of state pharmaceutical companies. The resulting entities included PNF Radja Farma, PNF Conscience Farma, PNF Nakula Farma, PNF Bio Farma, PN Bhineka Kina Farma, PN Sari Husada, and PN Kasa Husada. Their names and locations reflected the different regional and technical functions assigned to them. On 23 January 1969, these state pharmaceutical enterprises were consolidated into PNF Bhineka Kimia Farma. On 16 August 1971, the organization changed its legal form into a state-owned limited-liability company, becoming PT Kimia Farma (Persero). This change marked the creation of the corporate form that would later enter Indonesia's public equity market. After the Asian financial crisis, the Indonesian government sought to reduce pressure on public finances and broaden private participation in state-owned enterprises. Kimia Farma's privatization process was authorized in 2000. On 4 January 2002, the company established separate subsidiaries for pharmacy operations and for pharmaceutical trading and distribution. On 4 July 2002, PT Kimia Farma Tbk was officially listed on both the Jakarta Stock Exchange and the Surabaya Stock Exchange and adopted its public-company name. Kimia Farma developed a geographically distributed manufacturing base. The Jakarta plant has produced a broad range of dosage forms, including tablets, coated tablets, capsules, granules, syrups, dry suspensions, eye drops, creams, antibiotics, and injections. The Bandung plant has been associated with quinine and related materials, rifampicin, traditional Indonesian medicines, and intrauterine devices. The Semarang factory has produced castor oil, vegetable oils, and cosmetic talc. The Watudakon facility in East Java has processed mined iodine and has been described as Indonesia's only iodine-processing plant. The Tanjung Morawa facility in North Sumatra has supplied medicines to the Sumatran market. The company has therefore operated as more than a conventional drug manufacturer. Its activities have included production, wholesale distribution, retail pharmacy, health products, cosmetics, and selected medical devices. The pharmacy network provides a consumer-facing channel, while the distribution business connects products with healthcare providers and other retail outlets. The company has also explored international growth, including a 2012 plan for a Malaysian pharmacy branch, although the supplied sources do not establish the plan's final outcome. In May 2021, Kimia Farma became associated with a major public-health scandal after police arrested a local manager and four other employees over allegations that used COVID-19 nasal swabs were washed and reused at Kualanamu International Airport. The company dismissed the implicated workers. Lawyers subsequently pursued claims against the company on behalf of affected passengers. The incident raised questions about testing integrity, employee misconduct, operational oversight, and reputational risk for a pharmaceutical and healthcare provider.

  • 2021

    COVID-19 swab-reuse scandal

    [1]

    Employees were arrested over allegations that used nasal swabs were cleaned and reused in airport testing operations.

  • 2002

    Public listing and subsidiary formation

    [1]

    The company established pharmacy and distribution subsidiaries and was listed on the Jakarta and Surabaya stock exchanges.

  • 2000

    Privatization process initiated

    [1]

    Kimia Farma was included in the Indonesian government's privatization program for state-owned enterprises.

  • 1971

    Conversion into a state-owned limited company

    [1]

    The organization changed its legal form and became PT Kimia Farma (Persero).

  • 1969

    Consolidation into PNF Bhineka Kimia Farma

    [1]

    The state pharmaceutical companies were merged into PNF Bhineka Kimia Farma.

  • 1968

    State pharmaceutical companies reorganized

    [1]

    Government Regulation No. 69 reorganized the nationalized operations into a group of state pharmaceutical companies.

  • 1957

    Dutch-owned pharmaceutical businesses nationalized

    [1]

    The Indonesian government nationalized several Dutch-owned pharmaceutical, chemical, quinine, iodine, and medical-supply enterprises.

  • 1817

    Historical origins in the Dutch East Indies

    [1]

    The lineage associated with Kimia Farma is traced to the establishment of a pharmacy business in the Dutch East Indies.

Products and positioning

State-linked Indonesian pharmaceutical company with integrated manufacturing, distribution, and pharmacy operations.

  • Pharmaceuticals

    Prescription medicines

    Kimia Farma manufactures and distributes prescription medicines in multiple dosage forms. Its reported production capabilities include tablets, coated tablets, capsules, granules, syrups, dry suspensions, creams, eye drops, antibiotics, and injectable products. The portfolio reflects the company's role as a broad domestic pharmaceutical producer rather than a single-therapy specialist.

  • Consumer healthcare

    Over-the-counter medicines

    The company offers non-prescription medicines and health-related products through its retail and distribution channels. These products complement its prescription portfolio and support sales through pharmacies and other healthcare outlets in Indonesia.

  • Pharmaceutical ingredients

    Pharmaceutical raw materials

    Kimia Farma's historical manufacturing base has included quinine and quinine derivatives, rifampicin-related production, and iodine processing. The Bandung and Watudakon facilities have been associated with specialized raw-material and intermediate-product capabilities.

  • Medical devices

    Medical devices

    The company's product activities have included medical devices, with the Bandung operation historically associated with production of intrauterine devices. Medical-device activities sit alongside medicines, health products, and distribution services.

  • Personal care and health

    Cosmetics and health products

    Kimia Farma has also produced or marketed cosmetics and other health-related goods. The Semarang factory has been associated with vegetable oils, castor oil, and cosmetic talc, illustrating the breadth of the company's non-medicinal manufacturing activities.

  • Retail pharmacy · 2002

    Kimia Farma pharmacies

    The pharmacy business provides a direct retail channel for medicines and health products and forms a central part of the company's integrated model. Pharmacy operations were separated into a subsidiary during the 2002 restructuring.

Controversies

  • 2021

    Alleged reuse of COVID-19 nasal swabs at Kualanamu Airport

    In May 2021, a Kimia Farma manager in Medan and four other employees were arrested after authorities alleged that used COVID-19 nasal swabs had been washed and reused for testing passengers at Kualanamu International Airport. The reported activity was alleged to have continued from December 2020 and to have affected thousands of passengers. Kimia Farma dismissed the employees. Two human-rights lawyers later filed a lawsuit seeking damages for affected passengers. The allegations concerned employee misconduct and testing safety rather than a stated company-wide product defect.

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Brand decisions

  • 2012

    Proposed Malaysian pharmacy expansionStrategy

    Background

    Kimia Farma explored expansion beyond Indonesia as part of a possible regional retail strategy.

    Action taken

    The company disclosed plans to open a pharmacy branch in Malaysia.

    Aftermath

    The supplied reference does not establish whether the proposed branch opened or became a continuing operation.

  • 2002

    Creation of pharmacy and distribution subsidiariesStrategy

    Background

    As part of its post-privatization corporate restructuring, Kimia Farma separated important commercial functions.

    Action taken

    The company established subsidiaries for pharmacy operations and pharmaceutical trading and distribution.

    Aftermath

    The restructuring clarified the company's retail and wholesale channels before its public listing later in the year.

  • 2002

    Public-market listingM&A

    Background

    Indonesia's post-crisis reforms encouraged privatization and capital-market participation by state-owned enterprises.

    Action taken

    PT Kimia Farma Tbk was listed on the Jakarta Stock Exchange and the Surabaya Stock Exchange.

    Aftermath

    Kimia Farma became a publicly traded pharmaceutical company while retaining its state-owned identity.

  • 1971

    Legal conversion to a state-owned limited companyStrategy

    Background

    The government continued formalizing the structure of its consolidated pharmaceutical enterprise.

    Action taken

    PNF Bhineka Kimia Farma was converted into PT Kimia Farma (Persero).

    Aftermath

    The new legal form provided the basis for the company's later development as a state-owned corporate entity.

  • 1969

    Consolidation of state pharmaceutical enterprisesStrategy

    Background

    Following the nationalization of Dutch-owned pharmaceutical businesses and their reorganization into several state entities, the Indonesian government pursued further consolidation.

    Action taken

    The state pharmaceutical companies were merged into PNF Bhineka Kimia Farma.

    Aftermath

    The consolidation created the institutional predecessor of the modern Kimia Farma organization.

Recent events

  • Reported

    Kimia Farma lowers PCR test price[3]

    Kimia Farma lowered the price of its PCR swab test from Rp900,000 to Rp495,000, implementing a government directive. The company also announced planned price reductions for rapid antigen tests.

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Sources3 sources

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