China’s Silk Road Fund (SRF) and Indonesia’s INA sovereign fund INA invest in two state-owned Indonesian pharmaceuticals companies in a deal worth about 1.86 trillion rupiah ($120 million), a deputy minister said on Sunday.
Both SRF and INA will invest in listed PT Kimia Farma Tbk and its PT Kimia Farma Apotek unit, Indonesia’s deputy minister for state-owned enterprises, Pahala Mansury, told a news conference in Bali on the sidelines of a G20 summit.
“We hope the investment partnership can improve the pharma firms’digital services, product development and also repair (their) capital structure,” he said.
SRF was set up in 2014 and is backed by China’s foreign exchange reserves, China Investment Corp, the Export-Import Bank of China and the China Development Bank.
In July INA and SRF signed an investment framework agreement under which the Chinese fund aims invest up to 20 billion yuan ($2.8 billion) in Southeast Asia’s biggest economy.
($1 = 15,490.0000 rupiah)
($1 = 7.1066 Chinese yuan renminbi)
Image:ft