Indofarma Down to 3 Employees After Mass Layoffs,Danantara Explains Restructuring Plan
Jakarta,November 11,2025 - State-owned pharmaceutical holding company Danantara has addressed the recent drastic reduction in Indofarma’s workforce,leaving the company with only three remaining employees following layoffs impacting 413 workers on September 15,2025. Danantara officials state the move is part of a necessary restructuring plan aimed at turning around the financially struggling pharmaceutical firm.
According to statements made by Dony, a representative from Danantara, the layoffs and subsequent consolidation under Kimia Farma are designed to improve operational efficiency and financial health. “The point is, we, the goverment at Danantara, cannot possibly do anything that is not appropriate. That’s why they’re all happy, right. So they’re happy, this is part of the turn around. Later, Indofarma will come under Kimia Farma and become a console,” he explained.
Danantara emphasized that capital injection into Indofarma will only occur if the company demonstrates a viable path to recovery. “If the company doesn’t have a healthy profile, it’s no use giving money from a business that doesn’t exist. So we have to be logical. if it’s people’s money, then we want to divide it up, if we don’t find it, it’s perilous, right. So, we’re calculating this at Indofarma too. Later, Indofarma will merge with Kimia Farma,” Dony stated.
The layoffs are part of a broader restructuring program announced by Indofarma management, detailed in a disclosure to the indonesian Stock Exchange (BEI). The program focuses on financial restructuring and business reorientation, aiming to reduce operational costs and increase sustainability.
“PT Indofarma Tbk is making efforts to improve and recover by carrying out corporate restructuring.This draft Restructuring Plan is part of the implementation of the Corporate Restructuring Strategy through financial restructuring and business reorientation,” Indofarma management said in the disclosure.
The company is also continuing to follow up on a peace agreement reached in its Postponement of Debt Payment Obligations (PKPU) proceedings, as outlined in Peace Decision Number 74/PDT.SUS-PKPU/2024/PN.NIAGA.JKT.PST dated August 15, 2024. Indofarma has secured funding to support the implementation of efficiency measures mandated by the homologation decision.
Indofarma management assured that all employee rights will be fulfilled,stating,”With this funding support,Indofarma ensures that all obligations related to employee rights are completed in accordance with applicable regulations.”
(acd/acd)
