JAKARTA - PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) optimistic that the company's performance this year will still be able to grow amid the current global geopolitical challenges.
President Director of Sido Muncul Dr. (H.C.) Irwan Hidayat Irwan Hidayat said he was still aware of a number of external challenges, including global geopolitical dynamics that drove the rise in the price of packaging materials. However, this condition is considered still manageable by relying on around 90 percent of raw materials from within the country, so that the impact of fluctuations in the exchange rate of the US dollar against the rupiah is relatively limited.
"With 90 percent of raw materials originating from within the country, the impact of fluctuations in the value of the US dollar exchange rate on the rupiah is relatively limited," he said recently.
In the long term, SIDO has a strategy to strengthen investment in the national herbal upstream sector. The company strengthens research to improve the quality of spice plants as the main raw material for herbal products.
Not only that, the company is also developing research on medicinal plants for various diseases such as cancer, diabetes mellitus, to increasing body resistance. Some products are also entering the preclinical test phase.
As part of its long-term strategy, Sido Muncul launched the HerbalPedia digital education platform to increase public understanding of herbal-based medicine while strengthening the penetration of herbal supplement products. International market expansion is also being driven. This year, the company is aiming to enter the Saudi Arabian market as well as expand its penetration in the ASEAN and African regions through mainstream market channels.
"We also continue to maintain product quality consistently across all business lines and optimize cost efficiency through production, packaging, supplier management, promotional advertising, and supply chain optimization," he continued.
Based on the financial statements as of March 31, 2026, Sido Muncul recorded revenue of IDR 640.5 billion or down around 19 percent compared to the same period last year of IDR 789.1 billion. However, Irwan explained that the decline was not due to a weakening in consumer demand, but rather due to the normalization of inventories at the distributor level.
The accumulation of stocks is influenced by the tiered sales pattern and the purchase of distributors at old prices at the end of 2025. According to him, excessive inventory of goods at the distributor level has the potential to cause inefficiency and damage product prices.
However, market demand at the retail level is still strong, especially in the Java and Sumatra regions. Sido Muncul herbal products such as Tolak Angin, Kuku Bima Ener-G!, Esemag, and Tolak Linu still dominate the national herbal market.
In fact, Tolak Angin is said to control around 72 percent of the market share. So far he assesses that the herbal industry still has a bright outlook as people's awareness of health and natural lifestyles increases.
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