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President Director
"The Board of Directors formulates the Company's strategic direction and key policies for 2025 based on its vision and mission, supported by a comprehensive assessment of industry dynamics, risk profile, and market opportunities."
In the 2025 fiscal year, PT Industri Jamu Dan Farmasi Sido Muncul Tbk maintained a solid position, with its sustained business performance . Consistency in executing its strategy, operational discipline, and balanced financial management enabled the Company to sustain its growth momentum amid changes in the industry landscape. The Board of Directors believes that the Company’s policy direction and capabilities serve as key key strengths in reinforcing competitiveness and ensuring business sustainability going forward.
This report is prepared as a strategic communication tool for shareholders and stakeholders, providing a comprehensive overview of the Company’s business journey throughout 2025. The information presented reflects the dynamics of the business environment, management responses, and performance achievements during the reporting period, while reaffirming the commitment to continuously creating long-term value for all stakeholders.
As quoted from Bank Indonesia’s 2025 Annual Meeting book entitled ‘Resilient and Self-Reliant’: Synergy Driving Higher and More Resilient Economic Growth’, the global economy is currently entering a phase of uneven deceleration across countries and regions. Global economic growth remained constrained, largely driven by weakening performance indeveloped countries, while developing countries demonstrated relatively greater resilience. In its presentation, Bank Indonesia projected global economic growth remains at around ±3.0%, reflecting continued pressures from tight monetary policies, geopolitical fragmentation, and the uneven normalization of post-pandemic economic activity.
Meanwhile, amid the global slowdown, Bank Indonesia noted that Indonesia’s economy demonstrated strong resilience and relatively better performance compared to many other countries. National economic growth is projected to remain in the range of 4.7%–5.5%, supported by solid domestic demand and consistent policy mix between the Government and Bank Indonesia.
Household consumption continued to serve as the primary driver of national economic growth, supported by sustained purchasing power and rising domestic economic activity. Furthermore, investment showed a sustained growth trend, supported by improvements in the business climate, infrastructure development, and continued investment realization, including in high value-added sectors.
In terms of inflation, Bank Indonesia projected inflation to remain within the target range of 2.5% ±1%, reflecting the effectiveness of price control achieved through the synergy of monetary and fiscal policies, as well as coordinated inflation control at both the central and regional levels. Stable core inflation and controlled food inflation has provided a supportive foundation for maintaining sustainable macroeconomic stability.
The Company’s performance in 2025 was shaped by a number of unique challenges arising from macroeconomic pressures. In 2025, Bank Indonesia’s Consumer Confidence Index also showed a declining trend. The decline in the index was also attributable to weakening job availability. Although the index tended to decline in the early part of the year, it rebounded in October 2025. The improvement in the Consumer Confidence Index toward the end of 2025 indicated that public optimism remains well maintained, and that the slowdown was temporary, with expectations of recovery heading into 2026.
From a global perspective, the Company was also affected by geopolitical instability throughout 2025. This resulted in fluctuations in prices, the rupiah exchange rate, and international logistics costs. They rising geopolitical tensions indirectly increased market uncertainty, leading several destination markets to adopt a more defensive stance and prioritize on preserving their cash flows.
Overall market dynamics led to a slowdown in household spending, particularly in non-essential categories, and increased pressure on the lower-to-middle segments. On the other hands, the export segment faced various challenges. Nevertheless, through normalization and strategic adjustments, the Company’s export performance remained solid throughout 2025.
These market pressures are mitigated by Sido Muncul through the expansion of its product distribution network and the acceleration of the digitalization of its supply chain. Cost-efficiency initiatives were further strengthened through the utilization of of new and renewable energy, simplification and digitalization of business processes, and modernization of production machinery, contributing both to lower production costs and improved product quality.
The Company successfully maintained raw material price stability through strong and sustainable partnerships with local farmers. Even amid a general market contraction, the Company’s flagship product, Tolak Angin, retained its dominant position with a market share of 72%. This highlights that, even amid an industry slowdown, the Sido Muncul brand remains strong and top of mind among consumers.
The Board of Directors formulated the Company’s strategic direction and key policies for 2025 based on its vision and mission. This was supported by a comprehensive assessment of industry dynamics, risk profiles, and market opportunities. The formulation of this strategy aims to sustain business growth while strengthening the Company’s position as Indonesia’s leading herbal producer.
The strategies and strategic policies implemented by Sido Muncul in 2025 are as follows:
All of the above initiatives are designed to work in synergy to support sustainable growth. The Board of Directors acknowledges that 2025 presented its own set of challenges, as pressures in the domestic market created a fluctuating dynamics. Nevertheless, the Board of Directorscontinuously evaluates the progress of each strategic initiative, ensuring the Company remains adaptive and confident that the strategies implemented remain relevant and will lead the Company to achieve better performance compared to the previous year.
The formulation of the 2025 strategies and strategic policies was conducted collectively and comprehensively, and subsequently formalized in the Company's Work Plan and Budget (RKAP). As an initial measure, the Board of Directors established Strategic Directives to serve as the main guidelines for aligning the Company's vision and development direction. In formulating these directives, the Board of Directors conducted an in-depth review of both external and internal conditions to ensure that the resulting strategies are relevant and adaptive to industry dynamics.
These guidelines are then translated into tactical actions by each division and reviewed periodically. The Board of Directors will validate the entire process to ensure that the formulation of Strategies and Strategic Policies aligns with the Company's future direction and supports sustainable growth.
The Board of Directors conducts operations in accordance with good corporate governance principles. The Board of Directors ensures that each function performs its duties and responsibilities in accordance with established work guidelines. Periodic evaluations are conducted to ensure that the planned strategic initiatives and actions are effectively implemented. The evaluations are generally conducted during regular internal meetings in coordination with the Board of Commissioners. In 2025, a total of 12 evaluations and regular meetings were conducted.
During evaluations, each Director and the respective units present reports on the implementation and achievements attained. Based on these presentations, evaluations are conducted, enabling the Board of Commissioners and the Board of Directors to exchange views, as well as provide inputs and recommendations on performance achievements for the year. The scheduling of these meetings is crucial to ensure that the progress of the Company's strategic plan implementation remains aligned with the Company's overall strategy and timeline.
Beyond meeting evaluations, each individual has a Key Performance Indicator (KPI), which serves as a guideline and tool to help ensure that every member of the Company performs effectively. The KPIs of each key personnel are approved by the Board of Directors and evaluated semiannually. In 2025, KPI evaluations were conducted for all Company personnel.
Entering 2025, Sido Muncul projected double-digit growth, supported by the strong growth momentum achieved in 2024. However, the realization in the first semester revealed a considerable gap compared to the established targets. Consequently, the Board of Directors normalized the growth target to 5% and implemented a sales strategy offering incentives to end customers in order to mitigate the market pressures identified by the Company. This target normalization does not reflect any weakening of the brand value, but rather reflects market fluctuations driven by macroeconomic pressures and shifts in domestic economic and political policies.
Tolak Angin, the Company's flagship product, continues to dominate the market, along with Kuku Bima Ener-G also remain leaders in the powdered energy drink category. Throughout 2025, the Company also launched eight new products, developed with strong innovation to address market challenges. The eight new products are: Sido Muncul Softcapsule Vitamin D3 + K2, Tentrem Teh Tarik, Anak Sehat Susu Strawberry, Anak Sehat Susu Anggur, Sido Muncul Natural Sari Daun Salam, Sido Muncul Natural Mahoni, Sido Muncul Vitamin C+Collagen, Sido Muncul Natural Kidnera.
Taking into account internal conditions, macroeconomic factors, and market projections, Sido Muncul has established business plan targets across several substantial components, which serve as benchmarks for evaluating the Company's performance. The management assesses that Sido Muncul has successfully navigated 2025 with strong results. The comparison between the targets and the realizations is as follows:
Table of Comparison Between Targets and Realizations in 2025
| Description | 2025 Realization (Rp-Million) | 2025 Target (Rp-Million) | Achievement of Realization Against 2025 Targets (%) |
| Sales | 4,079,659 | 4,115,038 | 99% |
| Profit for the Year | 1,229,202 | 1,229,577 | 100% |
All in all, the Company's financial performance in 2025 showed positive results. This is reflected in total sales to Rp4.08 trillion, representing 99% of the target of Rp4.12 trillion. This is supported by dominant contribution from herbal and supplement, as well as strong growth from food and beverages segment. Furthermore, the Company posted a profit for the year of Rp1.23 trillion, achieving 100% of the annual profit target of Rp1.23 trillion, as a result of the Company's good operational cost discipline so that every expenditure produces maximum returns on the Company's sales and net profit.
From a capital structure perspective, the Company's total assets in 2025 were recorded at Rp3.68 trillion. This was driven by a decrease in cash and cash equivalents due to strategic capital allocation decisions. In 2025, The Company distributed an interim dividend equivalent to Rp22 per share, or Rp648 billion. In addition, the Company purchased Rp299.62 billion in treasury shares. Furthermore, The Company's total liabilities in 2025 amounted to Rp561.44 billion. This was driven by an increase in accounts payable due to increased purchases from suppliers at the end of 2025 and an increase in tax payable. The Company's equity in 2025 was recorded at Rp3.12 trillion, this decrease was driven by the purchase of treasury shares.
Geopolitical turbulence in 2025 led many countries to adopt more protectionist policies. This also includes tariff policies that triggered retaliatory actions among countries, as well as monetary policies from the United States and Japan that influenced capital flows toward their respective markets. As a result, Indonesia's projected growth could not be as ambitious as the Government's target. Consequently, continued pressure on consumer purchasing power could affect the Company's performance.
The Board of Directors recognizes this and has implemented mitigation measures by adjusting promotional strategies and incentives to generate market demand. Furthermore, the Board of Directors continues to prioritize the expansion of both domestic and international distribution, along with the development of new products to deliver high-quality offerings that meet consumer needs in the health, beauty, and food & beverage segments. As a result of these initiatives, the Company has continued to achieve strong growth despite challenges in both domestic and international markets.
Entering 2026, the Company views the business landscape with measured optimism. The management believes that the anticipated improvement in economic conditions in 2026 could strengthen the consumers' purchasing power, which in turn is expected to contribute to the Company's performance. Building on its innovation capabilities, consistent high product quality, solid business fundamentals, and operational efficiency demonstrated in 2025, Sido Muncul is well-positioned to enter a phase of accelerated growth while further strengthening its business competitiveness.
The Company's optimism regarding the 2026 outlook is supported by several fundamental factors, particularly the recovery in consumers' purchasing power and the normalization of the domestic market. The Company anticipates a more stable economic environment, aligned with the controlled inflation rate maintained throughout 2025. During this period, Bank Indonesia gradually lowered its benchmark interest rate from 6.00% to 4.75% as a measure to stimulate economic growth, support domestic spending, and maintain stability in the Rupiah exchange rate and inflation around 2.5%.
The improvement in macroeconomic conditions is expected to drive changes in consumer spending patterns, positively impacting the Company's sales volume. To capitalize on these opportunities, the Company will focus its strategy on strengthening its distribution network and increasing product availability nationwide, particularly in regions outside Java with significant growth potential.
Building on the performance of its export and domestic segments, as well as its focus on innovation and efficiency, the Company projects a moderate 8% growth in both sales and net profit for 2026. This moderate growth reflects the Company's optimism while maintaining prudence toward potential market risks and fluctuations that may arise at any time, particularly those arising from trade policies and domestic economic resilience.
In the international market, growth will be driven by increased contributions from key focus countries such as Nigeria, Malaysia, and the Philippines, as well as enhanced penetration and distribution networks in other non-focus countries. In line with this strategy, the Company also aims to expand its product portfolio across all export markets, introducing a greater range of high-potential herbal and health products tailored to the characteristics and preferences of each target country.
In both domestic and international markets, the Company places product innovation as the core of its strategy to expand its consumer base, with a particular focus on the younger generation and the growing awareness of healthy lifestyles. The innovations developed are not limited to herbal medicine products but also extend to the Food & Beverage category and other health-related products. Efficacy and quality remain the Company's primary focus, supported by the development of modern packaging formats and designs to overcome the perception of herbal products as conventional.
The Company's commitment to Environmental, Social, and Governance (ESG) principles remains strong, supported by a dedication that goes beyond mere regulatory compliance. This approach is reflected in the various prestigious awards the Company received in 2025. Entering 2026, the Company aims to increase the use of renewable energy in its production processes, improve waste management efficiency, and strengthen partnerships with over 4,000 supported spice farmers to maintain cost efficiency, raw material price stability, and sustainable supply.
By implementing all these initiatives, the Company is well- positioned to grow adaptively in response to market dynamics. The Company is confident in its ability to expand product marketing both domestically and internationally, creating optimal and sustainable value for all stakeholders.
Throughout 2025, the Company's Board of Directors consistently continued and strengthened the implementation of Good Corporate Governance (GCG) across all operational activities. The implementation of GCG serves as a foundation to support sustainable business performance, enhance the Company's competitiveness, and create added value for all stakeholders.
In its implementation, the Board of Directors remains committed to apply GCG in accordance with the General Guidelines for Corporate Governance in Indonesia (PUGKI), ensuring that the Company's governance is guided by the principles of ethical conduct, accountability, transparency, and sustainability. The implementation of these principles is integrated into the Company's decision-making processes, risk management, and operational activities.
Furthermore, the Company continues to implement the ASEAN Corporate Governance Scorecard (ACGS) framework as a reference for strengthening its corporate governance system. The ACGS framework is used as an evaluative tool to ensure that the Company's corporate governance practices are properly implemented. The Board of Directors believes that the implementation of good corporate governance will have a positive impact on the Company's future growth and sustainability, as well as support the achievement of its vision and mission.
Based on the latest ACGS Individual Company Report, with a cut-off date of June 30, 2024, and published on October 7, 2025, the Company achieved a total score of 89.46, marking an improvement over the previous assessment. This achievement reflects the strengthened implementation of corporate governance principles, particularly in the areas of shareholder rights protection, openness and transparency, sustainability, and the roles and responsibilities of the Board of Directors and the Board of Commissioners. It also demonstrates a sustained improvement in the implementation of GCG, as reflected by higher level of compliance with ACGS indicators and the enhanced quality of public disclosures.
Throughout 2025, the Company continued to strengthen the implementation of GCG by taking into account the results of the ACGS assessment. This was achieved through the refinement of governance policies and practices, the enhancement of monitoring functions, and the improvement of information disclosure quality. The Company is committed to continuously improving its GCG practices to stay aligned with corporate governance best practices and meet stakeholder expectations.
On the other hands, throughout 2025, the Company’s risk management system had operated effectively and efficiently. The Board of Directors, together with the Board of Commissioners, has managed risks that could potentially have a negative impact on the Company’s performance. Furthermore, the Board of Directors has developed strategic measures to mitigate the Company’s risks. The Board of Directors ensures that all operational activities are conducted in accordance with established safety systems and standards, and comply with applicable laws and regulations.
Furthermore, the Board of Directors assessed that the Whistleblowing System (WBS) was implemented effectively, transparently, and in accordance with prevailing policies. This system is provided as a channel for stakeholders to report suspected violations within the Company in a secure and responsible manner.
Throughout 2025, the Company received 8 (eight) complaints through the WBS channel. All of these complaints were followed up and resolved in accordance with the applicable procedures, proportionately and in a timely manner. None of the complaints were material or had a significant impact on the Company’s financial, legal, operational, or reputational aspects.
For reference, in conducting their duties, the Board of Directors is assisted by the Corporate Secretary and the Internal Audit Unit. In 2025, the supporting organs under the Board of Directors have conducted their duties and responsibilities effectively.
Throughout 2025, there were changes in the composition of Sido Muncul's Board of Directors. The Company made changes to its Board of Directors with the appointment of Mrs. Maria Reviani as Director, based on the resolution of the Annual General Meeting of Shareholders (AGMS) dated May 2, 2025, in accordance with Deed of Meeting Resolution No. 2. This appointment changed the composition of the Company's Board of Directors from four male Directors to a five-member Board, with Mrs. Maria Reviani as the sole female Director at PT Industri Jamu Dan Farmasi Sido Muncul Tbk. This change in the Board of Directors composition was made to address the Company's strategic needs, enhance management functions, and ensure leadership continuity supporting its long-term objectives and strategies.
The appointment of a female Director aligns with the Company's commitment to good corporate governance, particularly regarding diversity in the Board of Directors. This diversity adds value by enriching perspectives in strategic decision-making, while upholding prudence and the Company's best interests. Diversity practices, including gender representation, are part of the best corporate governance practices recommended by the OECD and are aligned with the corporate governance assessment framework of the ASEAN Corporate Governance Scorecard (ACGS).
At the national level, the Company's commitment to gender diversity in leadership is also aligned with efforts to enhance the corporate governance promoted by the Indonesia Stock Exchange and the Indonesia Business Coalition for Women's Empowerment (IBCWE), both of which encourage greater female representation in corporate leadership as part of good governance practices.
The appointment of this Board member was made based on the principles of meritocracy, professionalism, and integrity, ensuring that the individual's competencies and experience align with the Company's needs.
Following this change in composition, the current Board of Directors of Sido Muncul is as follows:
| No | Name | Position |
| 1 | David Hidayat | President Director |
| 2 | Irwan Hidayat | Director |
| 3 | Maria Reviani | Director |
| 4 | Budiyanto | Director |
| 5 | Darmadji Sidik | Director |
The entire Board of Directors is committed to fulfilling this mandate by consistently prioritizing the principles of good corporate governance, in the best interests of shareholders and other stakeholders.
In recognition of Sido Muncul's performance throughout the year, the Board of Directors would like to express its highest appreciation and gratitude to all parties who have contributed to achieving these results. The Board of Directors would like to extend its gratitude to the shareholders and all stakeholders for their continued support and trust in the Company.
The Board of Directors would also like to express its appreciation to the Board of Commissioners for their supervisory role, guidance, and constructive advice, which have enabled the Company's management to be operated effectively, in a well- directed manner, and in alignment with its strategic objectives. The Board of Directors also extends its gratitude to all members of Sido Muncul's management and staff for their dedication, professionalism, and strong spirit of collaboration, which have been key factors in achieving optimal performance in 2025. The Board of Directors hopes that these positive achievements can be maintained and further enhanced on a sustainable basis in the coming years.