PT Bio Farma (Persero), Indonesia’s state-owned pharmaceutical company, has recently submitted a proposal for a state capital injection (PMN) amounting to Rp 22 trillion (approximately USD 1.5 billion) to build a new vaccine production facility. The primary objective of this substantial investment is to enhance their production capacity, allowing for the manufacture of an additional one billion doses of vaccines annually.

Currently, Bio Farma has a production capacity of 3.5 billion doses per year, which includes both raw materials and finished products, covering 16 different vaccine types. However, many of the existing production machines are over 20 years old and require modernization to meet both national and international quality standards, including those set by the World Health Organization (WHO).

Shadiq Akasya, the President Director of Bio Farma, emphasized the urgency of upgrading their facilities during a recent meeting with the Indonesian Parliament. He pointed out that the WHO has raised concerns regarding legacy production facilities, highlighting the need for improvements in their operational infrastructure. With the proposed PMN funding, Bio Farma aims not only to renew its aging production equipment but also to develop new vaccine products.

In terms of production output, the new facility is expected to generate around 700 million doses of drug substances and 300 million finished vaccine products. This expansion is critical for strengthening Indonesia’s vaccine supply, especially given the country’s current market share, which stands at only 5% of the global vaccine demand. Comparatively, other major players like the Serum Institute of India command a 20% market share, while other companies like Sanofi and GSK hold 11% and 7%, respectively.

The initiative comes at a crucial time as Indonesia seeks to bolster its healthcare system and enhance vaccine availability for both local and global markets. Bio Farma’s planned expansion aligns with the government’s broader strategy to improve national health security through enhanced immunization programs.

Moreover, the new production facility is set to support the development of vaccines that are currently imported from abroad, such as those for Rotavirus, Typhoid Conjugate, and Hepatitis B. This move is expected to not only boost local production capabilities but also reduce dependency on foreign vaccine suppliers.

In summary, Bio Farma's request for a significant capital injection reflects its commitment to strengthening Indonesia's pharmaceutical industry and enhancing public health outcomes. The company's vision for the future includes improving local production quality and increasing global market participation in the vaccine sector, setting the stage for more robust health security measures.