Demand Remains Strong, Tolak Angin Holds 72% Market Share Amid Adjustment

Based on the financial report as of 31 March 2026, Sido Muncul recorded revenue of Rp 640.5 billion, down approximately 19% from the same period last year at Rp 789.1 billion. The company’s net profit was recorded at Rp 147.2 billion.

Sido Muncul’s President Director, Dr (HC) Irwan Hidayat, stated that the decline was not caused by weakening end-consumer demand, but rather the impact of inventory adjustment policies at the distributor level.

Irwan explained that the company conducted stock adjustments at the distributor level after inventories were deemed above normal needs. This condition was considered inefficient and could potentially make product prices in the market unhealthy.

“So far, distributor stocks have been relatively higher than normal needs. Therefore, we are making adjustments to make distribution more efficient and keep product prices in the market stable,” said Irwan at the House of Jamu Cipete, South Jakarta, on Tuesday (12/5/2026).

According to Irwan, stock accumulation occurred because the company previously implemented a tiered sales system. Distributors buying in large quantities received cheaper prices, so stocks in distributor warehouses continued to grow.

“That was first because of the tiered sales system. So if they take a certain amount, they get a cheaper price. If they take more, they get an even better price. So over time, the stock builds up. Because it’s too much, it’s inefficient,” explained Irwan.

He added that excessively large stocks also trigger unhealthy price competition in the market.

“Second, the prices get damaged. In the market, prices get ruined because they’re sold at cheap prices. That’s why I’m doing the inventory adjustment,” he continued.

Irwan emphasised that the decline only occurred in sales from the company to distributors (selling-in), while demand at the retail level remained stable, even increasing in several regions such as Java and Sumatra. For other regions outside Java, inventories are said to be normal.

“So automatically it drops. But sales don’t drop. So the performance report drops, but sales are stable,” he said.

He reiterated that the performance decline was not caused by falling demand.

“So the drop is not because demand is down,” he stressed.

Products Remain Market Leaders and Target New Growth

Amid the stock adjustment process, Sido Muncul’s business fundamentals are still considered strong. Several flagship products of the company continue to hold their positions as market leaders.

“At Sido Muncul, most products are market leaders. As a company, for example, Tolak Angin is 72 percent. For muscle and joint pain relief, Tolak Linu might be 90 percent,” said Irwan.

Irwan added that other products like Esemag and Kuku Bima also dominate their categories.

“For Esemag, it might be 90 percent. Then Kuku Bima, maybe around 51 percent. These remain market leaders,” he added.

With a strong market position, Sido Muncul still targets profit for 2026 at least equal to the previous year’s achievement.

“Our target, for this year, is profit at least the same. Same as last year,” said Irwan.

In addition, coinciding with the 75th anniversary celebration in November, Sido Muncul is preparing several strategic steps, from developing herbal-based food supplements, launching the SidoHerbalPedia educational portal, increasing research from upstream to downstream, and expanding export markets.

“This is during a war, prices are rising or raw materials are rising, what we are doing is that. One of them was launching SidoHerbalPedia yesterday to educate the public about jamu or herbal that has been clinically tested,” explained Irwan.

Irwan explained that the company is also increasing research investment to improve the quality of spice plants and develop herbal ingredients for various health needs.

“Then second, we are doing research. The research is first upstream. Upstream, on the plants to get higher quality spices. Then, we are also developing medicinal plant research for various diseases,” he continued.

Sido Muncul’s commitment to maintaining the quality and safety of herbal-based products is also demonstrated through strengthened scientific research and preclinical testing. This is evidenced by the success of Tolak Angin passing preclinical tests, including toxicity tests, conducted with renowned academic institutions.

On the expansion side, Sido Muncul targets expanding export markets to Saudi Arabia and China, with Tolak Angin as one of the flagship products.

“Then directing to export markets. Export markets is the fourth step, we might enter Saudi Arabia this year,” explained Irwan.

Sido Muncul also continues to maintain product quality while optimising cost efficiency across all business lines. According to Irwan, rising packaging and imported material prices can still be managed because most raw materials come from domestic sources.

“And the sixth is, we hope to maintain quality, so maintaining quality in the factory,” Irwan concluded.

Looking ahead, Sido Muncul remains optimistic about long-term growth prospects, supported by strong market demand, dominant brand positions, and strengthened innovation and market expansion.