Indofarma Tbk (INAF), a state-owned medicine and medical device manufacturer, is said to sell off its remaining assets to pay arrears to its own employees.
The plan was announced by Kartika Wirjoatmodjo, Vice Minister of State-Owned Enterprises (SOEs), in Jakarta last Monday (2/9). “For employees, we plan asset divestment, which will be sold systematically to resolve this employee issue,” he said.
For the record, total unpaid employees’ wages of INAF clock up to IDR 95 billion. By divesting the remaining assets, INAF is expected to pay all arrears to its employees.
“They have allocated their assets, worth quite a lot, assisted by Biofarma Holding,” added Wirjoatmodjo.
It is worth mentioning that the Ministry of SOEs has intended to change INAF’s business model in the future. INAF is plotted to no longer be a product supplier. Instead, it will only work on orders from its parent company, PT Biofarma (Persero). This measure is projected to boost efficiency on costs borne by INAF.
In addition, the Ministry of SOEs is also committed to improve INAF’s performance in the future. One of the strategies is to grant bonuses to the board of directors gradually in order to prevent financial report manipulation. (KR/ZH)