Financial Performance Analysis of PT Kimia Farma Tbk (KAEF) and PT Indofarma Tbk (INAF) Year 2018- 2022

COVID-19 pandemic in Indonesia has presented health challenges that have created potential opportunities for pharmaceutical companies due to increased reliance on medicines and medical devices. Indonesia's pharmaceutical market has experienced rapid growth in the Southeast Asia region, driven by the country's large population of over 265 million people and the implementation of the Indonesia's Universal Healthcare Program (JKN) in 2014. This study aims to evaluate the financial health of two pharmaceutical companies, PT Kimia Farma Tbk (KAEF) and PT Indofarma Tbk (INAF), listed on the Indonesia Stock Exchange. This study analyzes data from the period of 2018 to 2022, collected from the official company websites. Various financial ratios, including profitability ratios, solvency ratios, liquidity ratios, and activity ratios, were investigated. The results indicate a significant decline in the financial health of both PT Kimia Farma Tbk and PT Indofarma Tbk over the research period. Kimia Farma Tbk's financial health deteriorated from level A (Healthy) in 2018 to level BB (Unwell) in 2022, while Indofarma Tbk experienced a decline from level A (Healthy) in 2018 to level B (Unwell) in 2022. This study highlights the potential opportunities within the pharmaceutical industry during the COVID-19 pandemic. However, it also reveals the negative impact faced by PT Kimia Farma Tbk and PT Indofarma Tbk, resulting in a decline in their financial health. Therefore, it is crucial for both companies to implement stringent monitoring and evaluation measures, as stipulated by the Decree of the Ministry of State-Owned Enterprises, to address their financial challenges effectively.