Health is the greatest wealth, the most precious aspect of life and, since coming through the COVID-19 pandemic, we have better knowledge in how to take care of our health.
For over half a century, Kalbe Farma has been consistently improving and encouraging the people of Indonesia to implement a healthy lifestyle through its products and services, from physical, mental, cardiac, and environmental, to economic. Kalbe Farma (Kalbe) was established in Jakarta, Indonesia in 1966 with a vision to become the nation’s best global healthcare company. In the International market, Kalbe has established its footprint in ASEAN and African countries, positioning Kalbe as a national pharmaceutical company with a competitive edge in the export market.
In April 2023, Kalbe and Subsidiaries announced that net sales had reached Rp 7.9 trillion in the first quarter of 2023, growing by 12.2% compared to the first quarter of 2022. Meanwhile, net income stood at Rp 8.6 trillion, growing by 2.5% compared to Rp 8.3 trillion in the same period last year.
Macro-economic recovery in the post-pandemic era has created growth opportunities. Remaining vigilant on inflationary impacts and prolonged supply chain disruption, the Company has continued to implement strategies to maintain its growth and business sustainability and continued to underscore the need to manage input cost pressure through price increase policies, portfolio management, and managing operating cost efficiencies. Kalbe has ensured strong financial liquidity to manage its working capital and fund expansion and will continue its focus on innovation to provide products and services that meet consumer needs.
With “Panca Sradha” as its 5 living values, as well as top-in-class research and development (R&D) and excellent management capabilities, over the years Kalbe has expanded its business interests to become a provider of integrated healthcare solutions, managed through four business divisions: the prescription pharmaceutical division, the consumer health, nutritional and distribution & logistics divisions. These business divisions operate an extensive portfolio of prescription pharmaceuticals and OTC drugs, energy drinks, nutrition products, and medical devices, supported by a robust distribution arm serving over one million outlets across Indonesia’s vast archipelago. Kalbe is also a key player in the digital market through its active involvement in e-commerce ventures that are aimed at serving the rapidly growing, digitally savvy consumers.
Through various strategic alliances with international partners, Kalbe has established a range of R&D ventures, deeply involved in leading-edge drug delivery, a cancer drug, stem cell, and biotechnology research. These activities have allowed the company to continue introducing new, innovative products and services ahead of its competitors.
Kalbe’s current business operations are actively spread across 41 companies, including subsidiaries, joint ventures, and associates, supported by around 17,000 employees who work in 24 distinct business entities in Indonesia and overseas.
Kalbe’s products and services cover various divisions such as Prescription Ethical (i.e. Cravit Lefovloxacin, Neuralgin RX), Consumer Health (i.e. Hydro Coco, Cerebrovit, Komix, Promag, Procold, Woods’ Expectorant), Nutritional (Entrasol, Fitbar, Milna, Prenagen, Nutrive Benecol), Distribution & Logistics, Health Services, Medical Services, Biopharma, Animal Health, International Business and coping up with the digital ecosystem with e-health (i.e. KlikDokter, first introduced in 2008 – a platform for the trustworthy health education media). According to a public announcement issued in April 2023, in terms of growth and contribution by division, the Prescription Drugs Division posted sales growth of 27.5% to Rp 1.9 trillion from Rp 1.6 trillion in Q1 of 2022, accounting for 24.8% of the total net sales. The Consumer Health Division achieved increased sales of 9.3% to Rp 1.1 trillion in the same quarter, compared to Q1, 2022, contributing 14.0% to total net sales in the first quarter of 2023. The Distribution & Logistics Division saw net sales increase by 8.5% to Rp 2.8 trillion from Rp 2.6 trillion in the same period last year and contributed 35.7% to total net sales. The Nutritional Division posted net sales of Rp 2,007 trillion in Q1 of 2023, growing by 6.4% over the same period in the previous year, and accounting for 25.5% of total net sales in the quarter.
As a healthcare company, Kalbe values sustainability when making business decisions. Impacts on the environment, community, and related stakeholders will always be of equal concern in achieving a solid business performance. Through its commitment to helping promote community welfare, environmental protection, and business ecosystem continuity, this sustainability is implied not only in products and services, but also in the way Kalbe operates its business.
Kalbe’s sustainability can be specifically seen through the “Bersama Sehatkan Bangsa” tagline, and is supported by its sustainability governance, which consists of the organization structure, policies, framework, and strategy which cover nine key areas, deployed into the sustainability pillars. Internally, this is called ERAT (Etos Raga Asa Tindak meaning Ethic Body Behavior Action) and externally called SEHAT (Science & Technology for Health, Ecosystem & Environment Preservation, Hygiene & Health Education, Access to Healthcare, Total Sustainable Business Ecosystem).
