World bank will loan B. Braun $33m for Indonesia injectables plant

By Gareth Macdonald contact

- Last updated on GMT

iStock/Marcio Silva
iStock/Marcio Silva

Related tags: Indonesia

The World Bank has confirmed it will loan B. Braun $33m (€30m) to help pay for a manufacturing facility in Indonesia.

The loan – which is being provided by the World Bank’s International Finance Corporation (IFC) - will be used to construct a facility in Kota Bukit Indah at which B. Braun will make large volume injectable pharmaceutical products for Indonesia and other local markets.

According to a construction plan​ the plant will feature production areas, warehousing space, offices, a chiller and cooling tower, a flammable and toxic building, a high pressure boiler, a domestic and fire water tank, bus shelter and car park.

A B. Braun spokeswoman told us "The facility will be completed in November 2016​" adding that "the exact draw-down schedule of the loan from IFC is subject to confidentiality, as per the agreement with IFC​." 

At present healthcare spending in Indonesia is equivalent to 3% of the country’s gross domestic product (GDP) according to the World Bank, which is lower than comparable middle income countries.

To address this, the Indonesian Government introduced universal health coverage, the Jaminan Kesehatan Nasional (JKN) in 2014, in bid to make healthcare coverage available to the country’s 250 million citizens by 2019.

Sergio Pimenta, IFC Director for Manufacturing, Agribusiness and Services, said: “Investments in high-quality medical goods are one example of how the private sector can support public efforts for expanding universal health coverage, like in Indonesia​.”

B. Braun generated revenue of €1.07bn ($1.1bn) in the Asia-Pacific region in 2015, up from €840m ($916m). Most of the firm’s revenue comes from the sale of products made at its manufacturing facilities in Europe and in China, India, Japan, Malaysia and Vietnam.

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