The Story of Irwan Hidayat Nurturing Sido Muncul Before the Baton Passes

JAKARTA, KOMPAS.com – Maintaining a family business through to the third generation is often regarded as a “curse” in the corporate world. There is a popular adage that the first generation builds, the second expands, and the third destroys. However, PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) is debunking this myth. Entering its 75th year, this national herbal medicine giant is in a crucial phase of leadership transition to the fourth generation. Sido Muncul Director Irwan Hidayat stated that preserving family business continuity requires more than just strong financial reports. One of the biggest challenges in regenerating to the fourth generation is the increasingly expansive family structure. If the third generation was managed by siblings, he said, the fourth generation baton will be held by a lineup of cousins with far more diverse educational backgrounds and mindsets. Irwan acknowledged that for decades, Sido Muncul has operated largely using “family customary law,” unwritten consensus based on trust and habits. However, this approach is no longer sufficient for the future. Those formalisation steps include drafting strict authority boundaries, including the role of the Chief Executive Officer (CEO) in the context of family professionalism. This is crucial to prevent potential internal conflicts that often lead to the collapse of family businesses in many countries. This grand succession plan will begin to be solidified at the Annual General Meeting of Shareholders (AGMS) to be held in Semarang, Central Java, on Thursday (9/4/2026). In that agenda, Irwan Hidayat is projected to return to serve as President Director or CEO. However, he emphasised that this period is the closing chapter for his generation. Irwan targets the next one-year transition period as a time for improvement.