SINGAPORE May 19 PT Industri Jamu dan Farmasi
Sido Muncul Tbk, Indonesia's biggest herbal medicine
producer, plans to acquire a pharmaceutical company for about
150 billion rupiah ($13.1 million), its chief executive said.
Sido Muncul is doing due diligence on PT Berlico Mulia
Farma, which has more than 80 products such as cough and flu
syrup, vitamins and indigestion pills, and may expand further in
the pharmaceutical sector, Irwan Hidayat told Reuters.
Traditional medicine companies in Southeast Asia have big
plans to grow amid strong investor interest, as an increasingly
health-conscious middle class rises in the region.
Last December, Sido Muncul became the first herbal medicine
company to list on the Jakarta stock exchange. Its shares are
now trading over 40 percent higher than its initial public
Indonesian companies are expected to benefit from a national
healthcare scheme which was launched at the start of this year
with the aim of extending insurance coverage to its 240 million
people by 2019.
"The healthcare insurance in Indonesia will lead to a
tremendous rise in healthcare spending," Hidayat said over the
"Both herbal and pharmaceutical medicines are needed. In the
future, we hope to expand further in the pharmaceutical sector,"
Hidayat said, declining to give more details.
($1 = 11,445.50 rupiah)
(Reporting by Eveline Danubrata; Editing by Anand Basu)