JAKARTA, KOMPAS.com \u2013 PT Industri Jamu Dan Farmasi Sido Muncul Tbk\nrecorded a 19 per cent decline in revenue for the first quarter of 2026\ncompared to the same period in the previous year.<\/p>\n
In the first quarter of 2026, the company\u2019s revenue was recorded at\nRp640.5 billion, while the same period last year was Rp789.1\nbillion.<\/p>\n
Sido Muncul\u2019s President Director, Dr (HC) Irwan Hidayat, stated that\nthe revenue decline was not caused by a drop in end-consumer demand.<\/p>\n
The revenue decline is the impact of inventory adjustment policies at\nthe distributor level. This policy was taken to address excessive stock\naccumulation in the distribution network.<\/p>\n
Management estimates that full normalisation will be achieved as\ndistributor stocks return to ideal levels.<\/p>\n
\u201cThe decline is not due to reduced demand, but rather we are\nconducting an inventory adjustment. Market demand at the retail level\nremains stable, even increasing in some regions,\u201d Irwan said during a\npress conference in Jakarta on Monday (12\/5\/2026).<\/p>\n
The accumulation of stock at distributors was influenced by tiered\nsales patterns and distributors purchasing at old prices at the end of\n2025. In the tiered sales system, distributors receive incentives in the\nform of lower prices or rewards if they purchase in certain\nquantities.<\/p>\n
This condition caused excessive inventory buildup at the distributor\nlevel. Such accumulation has the potential to create operational\ninefficiencies and damage product prices in the market.<\/p>\n
\u201cThey bought at old prices, then sold cheaply in the market.\nMeanwhile, the official price has already increased, but they still sell\nbelow that price. This damages the market,\u201d he explained.<\/p>\n
Although the company\u2019s revenue has declined, market demand at the\nretail level remains stable. In fact, demand shows an increase in Java\nand Sumatra.<\/p>\n
Irwan emphasised that sales data from distributors to stores does not\nshow a significant decline. This proves that Sido Muncul\u2019s business\nfundamentals remain strong and end-consumer demand is unaffected.<\/p>\n
\u201cThe financial report shows a decline because we limited sales to\ndistributors. However, consumer demand has not decreased, and in some\nregions, it has even increased,\u201d he said.<\/p>\n
Sido Muncul\u2019s flagship products continue to maintain their position\nas market leaders in various categories. Tolak Angin commands 72 per\ncent of the herbal cold remedy market share based on Nielsen data.<\/p>\n
In addition to Tolak Angin, other products also dominate their\nrespective categories. Kuku Bima holds 51 per cent of the energy drink\nmarket. Then, products like Esemag, Tolak Linu, herbal supplements, and\nother powdered jamu also maintain their positions as market leaders.<\/p>\n
This dominant position in various product categories forms a strong\nfoundation for management\u2019s optimism in facing 2026 challenges.<\/p>\n
Irwan stated that with strong market demand and the right strategies,\nthe company is confident in maintaining profitability performance.<\/p>\n
Coinciding with the 75th anniversary of Sido Muncul in November 2026,\nthe company is preparing six strategic steps to drive long-term\ngrowth.<\/p>\n
First, launching the SidoHerbalPedia portal as a platform to educate\nthe public on herbal-based treatments.<\/p>\n
This portal is expected to boost sales of herbal food supplement\nproducts while increasing public awareness of the benefits of Indonesian\nherbs. SidoHerbalPedia will contain information on clinically tested\njamu based on research.<\/p>\n
Second, conducting upstream research to improve the quality of spice\nplants as main raw materials. This step is important to ensure the\nquality of jamu products from the source of raw materials.<\/p>\n
Third, developing research on medicinal plants for various diseases\nsuch as cancer, diabetes mellitus, and immunity enhancement. This\nresearch aims to expand the portfolio of scientifically based herbal\nproducts.<\/p>\n
Fourth, conducting preclinical tests on existing Sido Muncul\nproducts. This step aims to strengthen scientific validation of product\nefficacy and increase consumer trust.<\/p>\n
Fifth, expanding the export market by entering mainstream markets\nabroad. This year, Sido Muncul plans expansion to Saudi Arabia and China\nby registering products for sale in mainstream markets.<\/p>\n
Currently, Sido Muncul products abroad are mostly circulating in\nsecondary markets or Indonesian stores. By entering mainstream markets\nin Saudi Arabia and China, the company targets a significant increase in\nexport sales.<\/p>\n
\u201cWe will register products in Saudi Arabia to enter the mainstream\nmarket. If possible, we will also enter China,\u201d Irwan said.<\/p>\n
Sixth, maintaining consistent product quality across all business\nlines. The company will also optimise cost efficiency through production\noptimisation, packaging, supplier management, promotional advertising,\nand supply chain.<\/p>\n
In addition to the six strategies above, Irwan stated that the\ncompany will remain vigilant against several external challenges, one of\nwhich is global geopolitical dynamics driving up packaging raw material\nprices.<\/p>\n
However, the company can still manage the price increase. This is\nbecause around 90 per cent of Sido Muncul\u2019s raw materials come from\ndomestically. With a cost structure dominated by local raw materials,\nthe impact of US dollar exchange rate fluctuations against the rupiah is\nrelatively limited.<\/p>\n
\u201cWe are not a pharmaceutical factory that is 100 per cent\nimport-dependent. Our raw materials are 90 per cent local, so the\nexchange rate impact is not too significant,\u201d he said.<\/p>\n
Imported raw materials, he continued, only account for 5-6 per cent\nof total needs, mostly auxiliary production materials. Meanwhile,\nplastic packaging affected by price increases due to exchange rate\nfluctuations only contributes 5-7 per cent of total production\ncosts.<\/p>\n
Irwan is optimistic about the prospects of the herbal industry and\nSido Muncul\u2019s performance in 2026. Increasing public awareness of health\nis the main catalyst.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/despite-19-performance-decline-sido-munculs-tolak-angin-maintains-72-market-share-1778659150", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }