Jakarta. State-owned pharmaceutical company Biofarma announced plans on Friday to build a new, higher-capacity vaccine production facility to replace its existing factory in Bandung, West Java.

The current factory, located in the Pasteur area of Bandung, is over a century old and situated in a densely populated urban area, making it vulnerable to disruptions, said Biofarma’s Vice President Director, Soleh Ayubi.

The announcement follows Biofarma's recent success in securing a Rp 1.4 trillion ($88 million) contract to supply vaccines to international organizations and foreign countries for next year.

“If disruptions occur at our factory, delays would impact the 153 countries that purchase vaccines from us,” Soleh said during a news conference in Jakarta.

The existing Bandung facility has an annual production capacity of 3.1 billion vaccines, and Biofarma aims to significantly increase this capacity.

“We want to expand our capacity by several times, but it’s not feasible at our current location in Bandung. The factory was built 130 years ago in what was then a jungle, but now it is surrounded by a very crowded city,” Soleh explained.

Biofarma’s management is now searching for a site for the new factory that will be capable of operating for the next century.

“This will enable us to increase our capacity fivefold and significantly boost our export sales. Over the next decade, we aim to grow our export revenue tenfold,” Soleh added.

Indofarma Scandal
During the same conference, State-Owned Enterprises Minister Erick Thohir addressed the ongoing corruption investigation involving Indofarma, a Biofarma subsidiary.

Erick explained that Indofarma was originally established to produce herbal medicines and reduce Indonesia's reliance on imports. He said Indonesia’s potential in herbal medicine is on par with that of India and China due to its rich botanical resources.

“Our initial vision was for Indofarma to specialize in herbal medicine production,” Erick said. “Unfortunately, the management failed to adhere to good governance practices, prematurely ending that aspiration.”

Erick expressed plans to return Indofarma to its primary role as a supplier of raw materials for the pharmaceutical industry, in an effort to decrease import dependency.

In September, Jakarta prosecutors arrested Indofarma CEO Arief Pramuhanto on charges of falsified medical equipment procurement and accounting manipulations that cost the state Rp 371 billion ($23 million).