Assegaf Hamzah & Partners (AHP) advised PT Bio Farma (Persero) (Biofarma) on a landmark bank loan restructuring involving PT Kimia Farma Tbk (Kimia Farma) and its key subsidiary, PT Kimia Farma Apotek, marking a significant milestone in the transformation of one of Indonesia’s most strategic pharmaceutical groups.

The mandate formed a core part of Biofarma Group’s recovery and realignment strategy. AHP advised on the financial restructuring of Kimia Farma, which involved engagement with 11 creditor banks, complex joint borrowing arrangements, and multi-entity liabilities across the Kimia Farma group. Our role included structuring the transaction, negotiating commercial terms, and finalising the restructuring documentation, while ensuring compliance with applicable regulatory requirements.

In parallel, AHP advised on the restructuring of Kimia Farma Apotek, Indonesia’s largest pharmacy network and healthcare services provider. This was implemented through a Master Restructuring Agreement with five major banks, establishing a long-term framework to stabilise the company’s financial position, improve cash flow management, and sustain healthcare services across more than 1,000 outlets nationwide.

Together, the transactions addressed debt exposures of approximately IDR4.5 trillion at Kimia Farma and IDR1.4 trillion at Kimia Farma Apotek, reflecting the scale and complexity of the restructuring. The outcome supports the Biofarma Group’s broader business reorientation and the government’s strategic objective of strengthening national healthcare resilience.

This matter represents one of the most significant mandates handled by AHP’s Restructuring & Insolvency Practice, a practice pioneered and shaped by the late Ibrahim Sjarief Assegaf, whose vision continues to guide the firm’s approach to complex financial restructurings in Indonesia.

The work required close coordination across multiple disciplines, including restructuring and insolvency, corporate and M&A, capital markets, and regulatory advisory, underscoring AHP’s ability to deliver integrated solutions on complex, multi-layered transactions involving state-owned enterprises.

The matter was led by Partners the late Ibrahim Sjarief Assegaf, Putu Suryastuti, Tracy Tania, and Harun Wailan Ngantung, supported by Senior Associate Paulanie Wijaya and Associates Yoga Baskara Yogyandi, Raehan Nico, Sheliah Sylvania Patty, and Mollynda Ara Safia.

Commenting on the transaction, Harun Wailan Ngantung said: