Jakarta. State-controlled pharmaceutical company Kimia Farma has allocated Rp 1 trillion ($72 million) for capital expenditure this year, the company's president director said in a recent statement.

The company plans to build a build a drug ingredient factory in Cikarang and a medicine plant in Banjaran, both in West Java, president director Rusdi Rosman said.

Kimia Farma, Indonesia’s third-biggest listed pharmaceutical company, also plans to expand its salt factory in East Java as well as its medical equipment factory in Bali.

"We are also expanding our drugstore network with 125 new stores and clinics, which will need a total of Rp 150 billion to Rp 200 billion," Rusdi said.

The company plans to raise a quarter of the funds needed for expansion from its equity, with the rest coming from loans.

The company is considering a plan to raise Rp 1 trillion from selling 20 percent of its enlarged capital, this year, but it has yet to secure approval from the government and the House of Representatives.

Kimia Farma is targeting a 12 percent increase in revenue this year to Rp 5.6 trillion, from an estimated Rp 5 trillion last year. It projects a similar increase in profit to Rp 280 billion, Rusdi said.

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