JAKARTA (Yosefardi) – State pharmaceutical company PT Kimia Farma Tbk (KAEF) will enter into property business by building 2 hotels in Bandung and 1 hotel in Jakarta.

KAEF will partner with the construction company on the hotel project, running under the build operator transfer (BOT) scheme for 20 years period.

The company also targets to complete the construction of new factory in Banjaran, Bandung with investment cost of Rp1.2 trillion. The groundbreaking is scheduled for November 2014.

KAEF will issue medium term Notes (MTN) worth Rp200 billion, arranged by PT Mandiri Sekuritas.

It booked net profit of Rp70.57 billion in the first half of this year, jumped 65% from Rp42.77 billion in the same period of 2013. Its revenue rose 8.6% to Rp1.89 trillion from previous Rp1.74 trillion. The stronger dollar would hit the company’s earning as it imports law materials.