Report of the Board of Commissioners

Jonatha Sofjan Hidajat

President Commissioner

To Our Esteemed Shareholders and Stakeholders,

The Board of Commissioners, present the report on the duties and responsibilities of the Board of Commissioners in performing supervisory function over the management and operations of PT Industri Jamu Dan Farmasi Sido Muncul Tbk, which concluded on December 31, 2023, as part of the implementation of Good Corporate Governance principles.

Outlook on External Conditions

The global economy in 2023 was marked by a deceleration in the recovery momentum. This slowdown in the growth trajectory reflects uneven expansion during the third quarter. This was largely due to complex external factors, including tight financial conditions, sluggish trade growth, diminished optimism among businesses and consumers, and escalating geopolitical tensions arising from the Russia-Ukraine conflict, compounded by the ongoing Palestine-Israel conflict. Furthermore, the repercussions of tightened monetary policies and extreme weather conditions have also played a significant role.

Economic growth in several developed countries remains tepid. The United States achieved a growth rate of 3.3%1, China experienced a 5.2%2 increase, and Japan saw a contraction of 0.4%3 year-over-year in the fourth quarter of 2023. In response to these conditions, central banks in most countries have opted to maintain their interest rates, aligning with the gradual easing of inflation. The energy commodity market, meanwhile, has shown a positive trend, albeit at a lower level than in 2022. Agricultural commodity prices continue on an uptrend, while the prices of basic metals remain variable, and precious metals have seen a strengthening in their value.

In contrast to the global economic slowdown, Indonesia has demonstrated reasonable growth that aligns with its targets. According to data from the Central Statistics Agency, the Indonesian economy as a whole grew by 5.05% year on year (YoY)4 in 2023. This growth is partly attributed to the decrease in the inflation rate, which reached 2.61% YoY in December 2023, down from the previous year. This positive outlook is likely driven by strong domestic demand. Household consumption grew by 4.82% YoY5, supported by continuously increasing mobility, stable purchasing power, and consumer confidence remaining high following the Covid-19 pandemic.

Assessment Of The Board Of Directors' Performance

While the achievements of this year have not surpassed those of 2022, the Directors have shown commendable resilience and strategic acumen in sustaining the Company's business outcomes.

Firstly, the Directors' proactive approach in implementing intensive and innovative marketing programs has been a cornerstone of this year's performance. These initiatives, geared towards boosting sales, have played a pivotal role in maintaining a steady course in a challenging economic landscape. Furthermore, the Company's ongoing commitment to product development has been noteworthy. The focus on distribution and enhancing brand awareness for new products has been a critical part of our diversification strategy. It has laid the foundation for creating a new generation of products, potentially rivaling the success of Sido Muncul flagship product.

Financially, the total net sales amounted to Rp3.6 trillion compared to the previous year's Rp3.9 trillion. Upon closer examination of performance by segment, a diverse picture emerges. Net sales in the Herbal Medicine & Supplements segment reached Rp2.4 trillion, down from Rp2.6 trillion in 2022. The Food & Beverage segment achieved Rp1.1 trillion, up from Rp1.09 trillion in 2022. The Pharmaceutical segment reached Rp115.7 billion, down from Rp143.0 billion in 2022.

The net profit for the year 2023 stood at Rp950.6 billion, marking a decrease of 13.9% from Rp1.1 trillion in 2022. This decline is in line with the downturn in sales.

In terms of environmental stewardship and corporate responsibility, the Board of Directors' efforts deserve to be appreciated. The Company's commitment to environmental management has been recognized with the prestigious Gold PROPER Award from the Ministry of Environment and Forestry (KLHK) for the fourth time. Additionally, the Company's leadership in green practices has been acknowledged with the Primary Green Leadership Award from KLHK for the second time. These accolades underscore the Company's dedication to integrating environmental management into its business operations and community development sustainably.

Supervision Of The Company Strategy Formulation And Implementation

As the Board of Commissioners, our primary focus has always been the vigilant oversight of the strategic implementation formulated by the Board of Directors. This commitment aligns seamlessly with our role as supervisors in the management of the Company, ensuring adherence to the Articles of Association, General Meeting of Shareholders' decisions, Code of Conduct and prevailing laws and regulations, to achieve the Company Vision and Mission.

Specifically, the Board of Commissioners' supervisory and guiding functions are carried out with the aim of ensuring the Company is on the right track and capable of sustainable growth. The Board of Commissioners also strives to maintain intensive communication with the Board of Directors to ensure that oversight of the Company's business activities is more focused and structured.

Throughout 2023, the Board of Commissioners has endeavored to ensure supervision of the strategic implementation process previously established. Regularly, Joint Meetings of the Board of Commissioners and Board of Directors were held, focusing on presenting information related to strategic issues and the Company's performance. In this period, the Board of Commissioners convened 12 meetings with the Board of Directors.

During these sessions, the Board of Commissioners actively exercised its role in oversight and provided advice, suggestions, and recommendations regarding the business plans set to be established and agreed upon jointly. Recommendations from the Board of Commissioners were integral to the Company's strategy formulation process. Agreed and approved strategies and strategic policies were then articulated into performance targets, operational planning, work programs and the achievements are reflected on the Key Performance Indicators (KPI).


As we embark on the year 2024, the global and domestic economic landscape continues to present a tapestry of challenges and opportunities. The lingering uncertainties in the global conditions, influencing consumption and investment level that are a significant factor in this dynamic environment.

The International Monetary Fund (IMF) projects a raising economic growth for 2024, forecasting a slight increase to 3.1% from 3% in 20236. This projection does not subside the ongoing risks associated with economic and geopolitical tensions. Contrasting this, the World Bank offers a more pesimistic outlook, projecting that the global Gross Domestic Product (GDP) will decrease to 2.4% in 2024, from 2.6% in the previous year.7 Although global growth is forecasted to not be as high as last year, we remain optimistic about the potential for both domestic business and exports.

Indonesia, in the midst of its democratic festivity in 2024, are expected to have a stable growth by International monetary institutions. The political year is expected to have an impact on investment performance. Consumer confidence and spending are predicted to remain robust, buoyed by increased mobility and government efforts to sustain public purchasing power.

Armed with these projections, the Board of Directors, through consultation with the Board of Commissioners, has considered and established a risk management-based business strategy, thereby ensuring the implementation of this strategy is accurate and focused. We believe that a resilient, adaptive, and innovative business approach, focused on customer satisfaction, will be the cornerstone of successful competition in the future.

The Board of Commissioners is confident in the positive outlook for the coming year, where market conditions are anticipated to be more conducive, potentially boosting the Company's performance. This optimism is also bolstered by the growing consumer awareness of natural health supplement products. We also recognize that opportunities remain vast, both in domestic and international markets.


Our role as the Board of Commissioners not only to ensure the attainment of desired outcomes but also to vigilantly oversee the processes leading to these outcomes. It is imperative that these processes align with the prevailing regulations and procedures.

The Company's management under our supervision has not only complied with the relevant laws and regulations but has also shown a progressive enhancement in the quality of Good Corporate Governance (GCG) application within its operations. This improvement is evident in the increasingly robust and comprehensive mechanisms and instruments of GCG that the Company has adopted.

The Company is committed to continuously enhance GCG practice to maintain the highest standards of corporate governance, ensuring that our processes are not only effective but also transparent and accountable. We believe that such diligence in implementing and enhancing GCG practices is an integral part to the company's sustainable growth and success.


In 2023, there was a change in the composition of the Board of Commissioners through the Extraordinary General Meeting of Shareholders (EGMS) held on March 29, 2023. The change in the composition of the Board of Commissioners was due to the resignation of Mr. Segara Utama as an Independent Commissioner. Consequently, the composition of the Company's Board of Commissioners is as follows:

Position Name
President Commissioner Jonatha Sofjan Hidajat
Commissioner Johan Hidayat
Commissioner Sigit Hartojo Hadi Santoso
Independent Commissioner Lindawati Gani
Independent Commissioner Dr. Mohammad Adib Khumaidi

We extend our deepest gratitude to the Board of Directors, employees, business partners, and all stakeholders for their unwavering support, which has been instrumental in the growth and development of the Company. The Board of Commissioners strongly believe that the future success of the Company will depend significantly on the dedication of all parties to collaboratively steer the Company towards a brighter future. The Board of Commissioners is committed to adhering to the highest standards of business practices in our efforts to realize the Company's vision and mission.

1 Bureau of Economic Analysis. "Gross Domestic Product, Fourth Quarter and Year 2023 (Advance Estimate)", 26 Januari 2024
2 National Bureau of Statistics of China. "National Economy Maintained the Momentum of Recovery and Improvement in 2023." 17 Januari 2024
3 Kajimoto, Tetsushi. "Japan Q4 GDP Unexpectedly Contracts Due to Weak Domestic Demand." Reuters, 15 Februari 2024
4 Bank Indonesia. Siaran Pers berjudul “Pertumbuhan Ekonomi Indonesia Triwulan IV 2023 Meningkat”, 5 Februari 2024
5 Sipayung, Ronald S.G.S. "Dinamika Pertumbuhan Ekonomi Indonesia 2023 dan Proyeksi Tantangan 2024." Sekretariat Kabinet Republik Indonesia, 11 Februari 2024
6 World Economic Forum. “The IMF's latest update on the global economy, and other economics stories to read”, 5 Februari 2024
7 The World Bank.” Global Economy Set for Weakest Half-Decade Performance in 30 Years”, 9 Januari 2024