PETALING JAYA: Pharmaniaga Bhd is bullish on the Indonesian market and expects revenue contribution from its operations there to grow 17-18% this year. “Our operations in Indonesia are doing well. There are two operations there, one is PT Millennium Pharmacon International Tbk and the other is PT Errita Pharma. Both are profitable now,” chairman Tan Sri Lodin Wok Kamaruddin told reporters at its AGM today. He said growing population and affluence in the country is expected to increase demand for better healthcare. “Late last year we signed an agreement with Hilleman Laboratories of India to produce halal injectible vaccine. That’s going to be a big market. We will start with (focusing on) the Malaysian market but there is also potential for us to go to the region, especially Indonesia where we have a big operation. We see tremendous potential in producing this injectible vaccine to be marketed to this part of the world,” he added. Managing director Datuk Farshila Emran said its Indonesian operations currently contribute 32% to group revenue and is confident it can achieve the double-digit growth this year. The group’s revenue for the financial year ended Dec 31, 2017 grew 6% to RM2.3 billion from RM2.1 billion a year ago. For financial year ending Dec 31, 2018, the group has allocated RM75 million in capital expenditure, most of which will be spent on new machineries and equipment for its operations in Indonesia and enhancing its warehousing in Malaysia. Meanwhile, Farshila said it is on track with plans to set up a new plant to produce halal injectible vaccines. It is currently carrying out feasibility studies and aims to roll out the first commercial batch in 2024. She said it is reviewing the size of the new plant and has two possible sites namely Bandar Seri Iskandar, Perak and Sungai Petani, Kedah where it has land, and not in Puchong as announced earlier. The group signed a collaboration agreement with Technology Depository Agency and Hilleman Laboratories in December last year, and announced plans to invest RM100 million in a vaccine plant. Pharmaniaga’s share price rose 0.48% or 2 sen to close at RM4.20 today with 23,000 shares traded.