KLBF – Strategy to maintain performance amid rupiah volatility

KLBF – Strategy to maintain performance amid rupiah volatility Kalbe Farma (KLBF) faces financial pressure from the recent rupiah depreciation, as 60%-70% of its pharmaceutical raw materials are still imported, particularly active pharma ingredients and skimmed milk. To mitigate currency risks, the company has established a joint venture, Global Starway Synergy, in Shenzhen, China, and has started using Renminbi for transactions while also holding cash reserves in US dollars. Additionally, Kalbe Farma is actively seeking local raw material substitutes and enhancing domestic production capacity to meet local content requirements (TKDN). While selective price adjustments may be necessary, the company remains cautious about consumer purchasing power. Note that, KLBF recorded revenue of IDR24.2 tn (+7.44% yoy) and net profit of IDR2.4 tn (+15.58% yoy) in 9M24. (Source : Bisnis Indonesia)