Jonatha Sofjan Hidajat
Board of Directors successfully take advantage of market opportunities by
launching new products that suit consumer needs, expanding distribution
networks to reach remote areas of the country and strengthening digital sales
platforms to be closer to consumers and to expand unlimited new market
Dear Honored Shareholders,
We would like to praise God Almighty for His mercy
and grace. Hereby we deliver the supervisory report of
Board of Commissioners regarding the development and
management of PT Industri Jamu Dan Farmasi Sido Muncul
Tbk (the “Company”) for the financial year ended December
It is an honor for us to report that in the midst of the
unrecovered economic conditions and the increasingly
fierce competition, the Company was able to achieve
impressive performance growth. The Company successfully
managed various challenges and optimized opportunities in
The year 2021 started with strong optimism that the
pandemic will soon be over. The Covid-19 vaccine raised
hope that conditions in the future would be better. The
national vaccination program started on January 13,
2021. According to the government’s plan, the vaccination
program will take 15 months with a target of 181 million
Indonesian people. It is not easy to reach the target across
regions given Indonesia’s geographic conditions. It takes
time to reach a certain ratio to population in order to achieve
Nonetheless, unfortunately, the world was hit again by the
Delta variant of Covid-19, which had an extremely high
transmission and death rates. Indonesia experienced a
second wave with a very dramatic escalation of infection
cases. In July 2021, Indonesia became the epicenter of
Covid-19 with the highest death toll in the world reaching
2,069 people on July 27, 2021.
This reminded all of us that Covid-19 would not end anytime
soon. Although towards the end of 2021 the transmission
rate of Covid-19 in Indonesia continued to decline, this
disease has not completely disappeared. The spread of
Covid-19 is at risk of rising again along with the increased
mobility and the loosening of health protocols.
One interesting thing is the change in people’s behavior
during the pandemic. Covid 19 has formed a new paradigm
in society regarding the importance of maintaining health.
People are becoming more aware of living a healthier
lifestyle. They try to boost immune system by exercising,
eating nutritious foods and taking vitamins and health
supplements. The demand for vitamins and health
supplements, especially those made from natural herbal
ingredients, shows a remarkable increasing trend.
Board of Commissioners appreciates the achievement
of excellent performance in 2021. Board of Directors
successfully managed to maintain sustainable business
growth by achieving sales that exceeded targets in all
business segments. The Company moved swiftly to
take advantage of market opportunities by launching
new products that suit consumer needs, expanding
distribution networks to reach remote areas of the country
and strengthening digital sales platforms to be closer to
consumers and to expand unlimited new market coverage.
In 2021, the Company recorded net sales of Rp4.02 trillion,
grew by 20.6% from Rp3.34 trillion in 2020. This growth
was driven by strong demand from Herbal & Supplements
segment which grew by 21.3% from Rp2.22 trillion in 2020
to Rp2.69 trillion and Food & Beverages segment which
grew by 18.3% from Rp1.01 trillion in 2020 to Rp1.19 trillion.
Meanwhile, Pharmacy segment also recorded a significant
growth in percentage at 26.5% from Rp108.43 billion in
2020 to Rp137.15 billion. This achievement was supported
by a comprehensive marketing strategy and an optimized
production capacity to meet the increasing market demand.
The Company earned a net income of Rp1.26 trillion, grew
by 35.0% from Rp934.02 billion in 2020. Net income margin
increased from 28.0% in 2020 to 31.4%. The increase in net
income margin showcased the success of the Company in
carrying out sustainable efficiency in all lines of operations.
This was also implied by the cost of goods sold which only
increased by 15.9%, smaller than the percentage of sales
On non-financial aspect, Board of Commissioners also
noted a number of achievements that deserve appreciation.
The Company’s strong commitment to environmental management was rewarded Gold PROPER Award of the
Ministry of Environment and Forestry Republic of Indonesia
for the second time and Level 5 Green Industry Award of
the Ministry of Industry Republic of Indonesia for the fourth
Board of Commissioners performed supervisory and
advisory functions based on the Articles of Association
and BOC Manual. In performing our duties, Board of
Commissioners is assisted by committees as supporting
organs for Board of Commissioners, namely Audit
Committee and Nomination and Remuneration Committee.
The supervisory and advisory functions of Board of
Commissioners are mainly performed in coordination
meetings with Board of Directors to monitor performance
periodically. During 2021, Board of Commissioners held
13 meetings, 12 of which were coordination meetings with
Board of Directors.
In the coordination meeting forum, Board of Directors
clearly explained the work plans, strategies and initiatives to
be implemented in 2021. Board of Commissioners actively
conveyed insights and recommendations according to our
respective functions and capacities.
Board of Commissioners supports the efforts of Board
of Directors to continue to develop traditional and herbal
medicines by utilizing natural resources in Indonesia.
Indonesia has a biodiversity of no less than 40,000 plants,
7,500 medicinal plants with 1,300 species identified. This
abundance is the potential as well as the main capital for
the development of traditional and herbal medicines.
Board of Directors has mentioned that the Company is
building a green house facility to develop superior seeds of
medicinal plants on a mass and sustainable scale. Breeding
medicinal plants, in addition to securing availability of
superior seeds as raw materials, also aims to preserve rare
medicinal plants to be cultivated by farmers.
Every month, Board of Commissioners together with
Board of Directors evaluate the operational and financial
performance achievements of the previous month, problems
encountered and the respective solutions, as well as the next
development plan. Board of Commissioners also monitors
the effectiveness of internal control, risk management and
good corporate governance implementation.
Communication between Board of Commissioners and
Board of Directors is not only carried out through coordination
meeting forums, but also through informal communication
in the form of telephone, video conference, or electronic
mail. Through intensive communication between Board of
Commissioners and Board of Directors, Board of Directors
can immediately report the latest developments regarding
strategy implementation and Board of Commissioners
provides guidance and opinions, so that Board of Directors
can make decisions based on a comprehensive perspective.
Herbal Medicine Association (GP Jamu) believes that herbal
medicine industry will remain prospective in 2022. The overall
herbal medicine sales figure will grow by approximately
10% in line with the increasing public awareness of the
health benefits of herbal medicine. People tend to choose
to consume herbs and traditional medicines as a preventive
measure during the pandemic. This paradigm will continue
in the future even after the pandemic is over.
Board of Directors submitted 2022 business plan with
moderate growth targets. Board of Commissioners believes
that Board of Directors is able to realize the strategy to
achieve these targets. The Company’s strength is research
and development that continues to produce scientificallybased innovative products that can be accounted for. With
that strength, Sido Muncul products are able to penetrate the millennial and Z generation markets, who are critical
in choosing the intake of vitamins and supplements they
Considering the increasingly fierce competition in the herbal
and pharmaceutical industry as well as market uncertainty
due to the ongoing Covid-19 pandemic, Board of
Commissioners has provided insights to Board of Directors
To design the right marketing strategy by mapping its
main competitors who have similar products and to
build a market research team in order to monitor their
To map positioning of each product to obtain a clearer
picture of which products are promising to become
cash cows in the future as a basis for designing better
product development and marketing strategies.
To evaluate the export market and focus on a
progressive purchasing rate.
To develop the production of medicinal raw materials
which are currently still imported.
In addition, Board of Commissioners reminded Board of
Directors to ensure that the Company’s activities always
run according to strict health protocols, continue to improve
efficiency, give emphasis to occupational health and safety
aspects and run the business by upholding SIDO values.
Board of Commissioners and Board of Directors are
strongly committed to implementing and upholding the
principles of Good Corporate Governance (GCG). The
consistent implementation of GCG is an important part
of all of the Company’s business processes. Board of
Commissioners considers that the Company implements
GCG satisfactorily. The Company has guidelines and GCG
policies in place that are comprehensive and continuously
updated from time to time. Nonetheless, surely there is
always room for improvement to increase the quality of
In the view of Board of Commissioners, internal financial and
operational control system implemented in the Company is
quite effective, transparent and accountable. However, it
is still necessary to improve SOP in order to increase the
effectiveness of internal control. Board of Commissioners
through Audit Committee will assign Internal Audit Unit to
evaluate all SOP related to internal control system.
Annual GMS on March 31, 2021 approved the appointment
of Mr. Segara Utama, Mrs. Lindawati Gani and Mr. dr.
Mohammad Adib Khumaidi as Independent Commissioners
of the Company starting from the closing of the GMS until
the closing of the Company’s Annual GMS which will be
held in 2022.
Extraordinary GMS on December 15, 2020 approved the
resignation of Mr. Young-Tae Park and Mr. Eric Marnandus
from their positions as Commissioners of the Company.
Hence, the composition of Board of Commissioners of the
Company as of December 31, 2021 is as follows:
|Jonatha Sofjan Hidajat
|| President Commissioner
|Sigit Hartojo Hadi Santoso
|| Independent Commissioner
|| Independent Commissioner
|Dokter Mohammad Adib Khumaidi
|| Independent Commissioner
Finally, on behalf of Board of Commissioners, I would like to
extend my gratitude to the shareholders and all stakeholders
for their support and trust. My sincere appreciation goes
to Board of Directors and all employees who have shown
their hard work, loyalty and dedication for the Company’s
success. Hopefully, the Company can continue to provide
the best benefits to the shareholders, customers, business
partners and all stakeholders in the future.