Phytochemindo Managing Director Reveals Reasons Behind Herbal Extract Industry's Growth
Jakarta, CNBC Indonesia - Patrick Kalona, Managing Director of PT Phytochemindo Reksa, acknowledged that Indonesia’s herbal extract industry faces numerous challenges. However, he noted that the sector has continued to grow over recent years.
This is supported by an ecosystem established by the Food and Drug Monitoring Agency (BPOM) and relevant ministries to boost industry performance.
“Looking at developments over the past decade, the number of herbal extract companies has consistently risen,” he stated at the Health Forum on Tuesday, 26 May 2026.
He said that a decade ago there were approximately six herbal extract companies, but today, according to industry associations, the number has approached 22.
“This is clear evidence that with guidance and the established ecosystem, all forms of business can grow and flourish,” Patrick explained.
Previously, Mohamad Kashuri, Deputy Head of Traditional Medicine and Health Supplements at BPOM RI, spoke about the state of Indonesia’s jamu industry.
He stated that Indonesia’s jamu industry faces complex challenges from upstream to downstream, including regulatory issues.
He noted that most players in Indonesia’s jamu development are not just large industries but also micro, small, and medium enterprises (MSMEs), many of whom lack understanding of regulations.
“This naturally leads to obstacles during regulatory compliance or marketing efforts,” he explained.
He added that another issue facing the industry is funding. Capital is crucial for driving jamu businesses, particularly for MSMEs.
He noted that many Indonesian jamu MSMEs lack sufficient capital, hindering their business expansion efforts.
Next is production. Kashuri said the industry requires high-quality, standardised raw materials, but jamu raw materials are still largely imported.
“This also poses challenges for MSMEs. Then there’s product innovation – creating effective products with appealing packaging. This is another hurdle. Marketing is also a challenge. How can our jamu contribute to economic growth? There are many complex issues,” he said.