Established on January 2 1996, the company dates back to 1918 when it was a pharmaceuticals factory known as Pabrik Obat Manggarai. In 1942, ownership of this pharmaceuticals factory changed hands from the Dutch to the Japanese government. In 1950, Pabrik Obat Manggarai was taken over by the Indonesian government via the Department of Health, and became the pharmaceuticals production center for this government department. In 1979, the name of the factory changed to the Department of Health Pharmaceuticals Production Center, a non-profit organization, whose primary task was to produce essential medicines for public health care services. In 1981, the name this production center was changed to Indonesia Farma (State Utility). In anticipation of future growth and increased competition, in 1996, the status of this company was changed to a limited company, PT Indonesia Farma, or PT Indofarma for short. That year the company also began expanding its local distribution network. In 1996, the company acquired a 43.5% shareholding in PT Riasima Abadi Farma, a producer of raw materials used in the production of pharmaceuticals. In January 2000, the company set up subsidiary PT Indofarma Global Medika, to deal with the distribution side of the company’s business. In March 2000, the company acquired a 20% stake in PT Asindo Husada Bhakti, which was set up to distribute pharmaceutical products through retail outlets. In March 2001, the company made a public offering of its shares. Of the funds raised from this offering, 53% was used to develop production capacity and facilities, and 43% to augment working capital.