Indofarma, Indonesian State-Owned Pharma Company, Unable to Pay Salaries Since March

PT Indofarma Tbk (INAF), a state-owned pharmaceutical company in Indonesia, has admitted its inability to pay employee salaries since March 2024 due to financial difficulties. The company's President Director, Yeliandriani, stated that Indofarma currently lacks sufficient operational funds to fulfill its wage obligations to employees.

The salary payment issues stem from Indofarma's decision to Postpone Debt Payment Obligations (PKPU), which requires the company to coordinate with a team of administrators appointed by the court. Despite the financial challenges, Yeliandriani assured employees that the 2024 Eid al-Fitr holiday allowance (THR) had been paid in full on April 5, 2024.

Why this matters: The financial struggles of Indofarma, a major state-owned pharmaceutical company in Indonesia, highlight the broader economic challenges faced by businesses in the country. The inability to pay employee salaries can have significant implications for the workforce and their families, as well as potential ripple effects on the local economy.

Indofarma is currently undergoing a debt restructuring process, with the Temporary PKPU in place. Yeliandriani emphasized that the PKPU does not directly impact the company's operations, and Indofarma will continue to operate as usual while coordinating with the court-appointed committee.

The financial difficulties at Indofarma have left its employees in a state of distress, as they have not received their salaries for over a month. The company's management is working to address the situation and find solutions to meet its financial obligations, including employee wages.

Yeliandriani stated, "The company currently does not have sufficient operational funds to fulfill its employee wage obligations." She further added, "The debt restructuring process for Indofarma is currently in the Temporary PKPU process."

As Indofarma navigates its financial challenges and works towards a resolution, the company remains committed to maintaining its operations and serving its customers. The management is actively engaging with the court-appointed administrators to develop a plan that will allow the company to meet its financial obligations and ensure the well-being of its employees.

Key Takeaways

• Indofarma, a state-owned pharma firm, unable to pay salaries since March 2024.
• Indofarma in debt restructuring process, under Temporary PKPU with court-appointed administrators.
• Eid al-Fitr holiday allowance (THR) paid, but regular salaries remain unpaid.
• Financial struggles highlight broader economic challenges faced by Indonesian businesses.
• Indofarma committed to maintaining operations, working with administrators to resolve issues.