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President Director
"The Company is committed to continuing to review and evaluate the business strategies used in the reporting year regularly, which aims to ensure that the Company can continue to grow and develop annually, through innovative and effective strategic measures that need to be implemented."
In 2024, PT Industri Jamu Dan Farmasi Sido Muncul Tbk demonstrated significant growth in both operational and financial aspects. The Company effectively navigated various challenges and business dynamics, maintaining considerable control over its operations. The Board of Directors remains optimistic that Sido Muncul will continue to grow and maintain sustainability in its industrial sector.
This report presents the latest information regarding Sido Muncul's business activities in 2024 and aims to help shareholders and stakeholders understand the conditions and developments achieved by the Company throughout 2024.
Through this report, the Board of Directors would like to describe the Company's operational and financial performance throughout 2024.
Economic global conditions are still characterized by significant uncertainty, although there has been some improvement in 2024 compared to the previous year. High global inflation has led central banks to raise interest rates, which is hindering economic growth. Geopolitical tensions and prolonged conflicts have further created uncertainty and economic fragmentation, hindering global economic growth. According to the International Monetary Fund (IMF), economic growth is forecasted to be at 3.2% for 2024. The IMF also anticipates that the global economy will experience a slowdown, with a high inflation rate of 5.8% in 2024, which is expected to decrease to 4.2% in 2025.
Amid global uncertainty, Indonesia has demonstrated strong resilience. According to data from the Statistics Indonesia (BPS), the Indonesian economy is projected to grow by 5.03% in 2024. This growth is supported by controlled inflation, robust domestic consumption, an attractive investment climate, and policies promoting industrial downstreaming. Furthermore, data from Bank Indonesia (BI) indicates that the inflation rate for Indonesia is expected to be 1.57% (year on year) in 2024, remaining within the target range of 2.5±1%.
According to the data BPS, the current national economic conditions are robust, primarily attributed to the growth observed across various industrial sectors and an increase in productive household consumption. Notable growth rates were recorded in several key business areas: the Construction sector grew by 7.02%, the Mining and Excavation sector grew by 4.90%, and the Processing Industry grew by 4.43%. Furthermore, Household Consumption (PK-RT) and Consumption of Non-Profit Institutions Serving Households (PK-LNPRT) exhibited growth rates of 4.94% and 12.48%, respectively.
According to data from the Ministry of Health’s Strategic Plan for 2020-2024, Indonesia has great potential to develop its traditional medicine industry as it ranks among the top five mega-biodiversity countries in the world. The Ministry of Health of the Republic of Indonesia aims to enhance the capacity of human resources, facilities, and infrastructure to boost the production capacity of export-oriented herbs by 2024.
According to data from Bank Indonesia (BI), the Prompt Manufacturing Index (PMI) for the Chemical, Pharmaceutical, and Traditional Medicine sectors stands at 51.9%. These industries show strong long-term potential, particularly in health, herbal, and pharmaceuticals. The Ministry of Industry (Kemenperin) reports that in 2024, the export value for the pharmaceutical industry, including chemical drug products and traditional medicines, is projected to reach USD1.042 billion. The largest export destinations for these products are Taiwan, China, Philippines, India, Japan, Singapore and Vietnam.
The development of the pharmaceutical industry, chemical drug products, and traditional medicines has experienced positive growth. Public awareness of health continues to increase, and the recognition of herbal medicine as a world intangible cultural heritage by UNESCO opens up opportunities for Sido Muncul to expand its market globally.
In 2024, the Board of Directors developed a strategic plan that aligns with the Company’s vision and mission, as well as its external and internal conditions, risk exposure, and market opportunities. This strategy aims to enable the Company to grow and achieve optimal performance every year.
The Board of Directors together with Management are committed to realizing sustainability in the Company's business. Periodically, Sido Muncul will continue to expand its distribution network in the domestic and international markets. Through its subsidiaries, Sido Muncul synergizes to build a strong and integrated business ecosystem, which aims to enable Sido Muncul to excel and be the leader in the industry.
The Board of Directors will optimize the use of technology in its operational activities. In 2024, the Board of Directors encouraged the digitalization of business processes by expanding the Human Resource Information System (HRIS) function and implementation of My Sido Muncul application. The use of the My Sido Muncul application will be maximized with the aim of improving the Company's performance in terms of outlet management and gamification potential.
The strategic strategies and policies implemented by Sido Muncul in 2024 are as follows:
Since its establishment, Sido Muncul has built mutually beneficial strategic partnerships with various parties. In 2024, Sido Muncul has more than 188 thousand registered outlets throughout Indonesia. Internationally, Sido Muncul has reached 30 countries to distribute its products. Every year, Sido Muncul will also innovate its services and products.
The Board of Directors is aware that Sido Muncul's business development is growing well. In 2024, various strategic steps were taken to create growth in operations and productivity, as well as improve the Company's financial performance. Therefore, the Board of Directors is optimistic that the strategies and strategic policies prepared will drive growth to the Company for now and ensure its sustainability in the future.
In carrying out its duties and responsibilities, the Board of Directors, in collaboration with the Board of Commissioners, have prepared the Company's Work Plan and Budget (RKAP) and strategic steps for 2024. The preparation of the RKAP took into account various external and internal factors as well as the dynamics of the Company's business.
The Board of Directors, and Management, has implemented operational activities with good governance. In this case, the Board of Directors ensures that each unit performs its functions in accordance with its respective work guidelines. The Board of Directors also conducts periodic evaluations to ensure that the planned strategies and steps are achieved according to the set targets.
The Board of Directors bears full responsibility for implementing the policies and strategies throughout 2024, which have been executed effectively.
In 2024, the Board of Directors, along with Management, were actively involved in the formulation of the Company's strategies and strategic policies. The Board of Directors always ensures that the strategies strategic and policies formulated are in accordance with the Company's objectives and in line with the provisions of applicable laws and regulations as well as Good Corporate Governance principles.
In addition, the Board of Directors ensures that each unit carries out its functions in accordance with the division of tasks and functions that have been determined in the Company's work guidelines and plans. This synergy is expected to drive positive performance in Sido Muncul's operations in 2024.
In its implementation, to ensure the alignment of the formulated strategies and strategic policies with the plan. The Board of Directors holds internal regular meetings and joint meetings with the Board of Commissioners. In 2024, the Board of Directors held 12 joint meetings with the Board of Commissioners. This meeting is a form of coordination between the Board of Directors and the Board of Commissioners for synergy to provide the best results for the Company.
During the meeting, each Director and relevant unit presents a report on the tasks they have completed. This allows the Board of Commissioners to offer feedback and recommendations regarding the execution of these tasks by the Board of Directors. The goal is to ensure that the strategic strategies and policies are effectively implemented to meet the established targets, ultimately contributing to the growth of the Company.
In 2024, Sido Muncul recorded solid growth amidst market challenges and declining purchasing power. The Company's financial performance experienced growth, recording revenue of Rp3.92 trillion, increased by 10% compared to revenue in 2023 of Rp3.57 trillion.
Sido Muncul's revenue was derived from the herbal medicine and supplement segment of Rp2.49 trillion or 63% of total revenue. The food and beverage segment contributed 33% of total revenue with a value of Rp1.3 trillion, and the pharmaceutical segment contributed Rp127.46 billion or 3% of total revenue.
The Board of Directors successfully reduced the Company's operating expenses due to the effective management. The Board of Directors carried out targeted marketing initiatives and increased sales productivity. As a result, in 2024, Sido Muncul managed to obtain a net profit value of Rp1.17 trillion, increased by 23% from the previous year of Rp950.65 billion.
Sido Muncul recorded a very strong financial position with assets, liabilities, and equity amounting to Rp3.94 trillion, Rp 451.78 billion, and Rp 3.49 trillion, respectively. This financial position reflects Sido Muncul ability to expand its resource base, driven by increased operational efficiency and revenue growth. A strong balance sheet illustrates a healthy capital structure and signifies substantial capacity to fund future initiatives that will accelerate a higher growth.
In 2024, Sido Muncul strengthened its position by expanding its domestic and international market. Sido Muncul's distribution network grew by 13% with 188 thousand total outlets. This achievement reflects an increase in public trust in Sido Muncul products, which hold a market share of around 72% in the 2024 common cold market category.
In addition, Sido Muncul launched 9 (nine) new products, including Sido Muncul Vitamin C 1000 Plus D3 400IU + Zinc 50 mg Muscat Grapes, Sido Muncul Natural Male Balance, Tolak Angin Batuk, Sido Muncul Vitamin C 500 mg, Sido Muncul Natural Black Cumin, Sido Muncul Natural Grape Seed + Vitamin C 60 mg, Sido Muncul Natural Calci Bone, Sido Muncul Natural Tolak Linu, and Tentrem White Coffee Less Sugar. Furthermore, Sido Muncul has also won various awards, demonstrating Sido Muncul’s ability to grow with innovation by increasing productivity and quality to maintain business sustainability.
In 2024, the comparison between the realization and targets of Sido Muncul's operational and financial performance is as follows:
Therefore, cumulatively the Company has achieved the set target, namely a minimum growth of 10% in both company revenue and net profit compared to the previous year.
Based on the results of the Annual General Meeting of Shareholders (AGM) on May 15, 2024, the Company distributed dividends of Rp918 billion or equivalent to Rp30.6 per share with a payout ratio of 96.56% of the Company's net profit in 2023 to the Company's shareholders.
All dividends were paid to shareholders through the distribution of interim cash dividends on November 20, 2023, and final dividends on June 06, 2024.
Then based on the decision of the Board of Directors meeting on October 23, 2024 which has been approved by the Company's Board of Commissioners through the decision of the Board of Commissioners meeting on October 23, 2024, the Company has distributed interim dividends for 2024 amounting to Rp540 billion or equivalent to Rp18 per share with a payment ratio of 88.74% of the Company's net profit as of June 30, 2024 to the Company's shareholders on November 20, 2024.
In 2024, there were no significant obstacles faced by the Company. However, during the course of the year, the Board of Directors made several improvements to enhance the efficiency and effectiveness of the Company's operations.
The Board of Directors has successfully fulfilled its roles and responsibilities. However, there is always an opportunity for further improvement. Specifically, the implementation of rapid, targeted, efficient, and adaptive strategies is vital in navigating the challenges posed by a competitive business landscape. In addition, enhancing risk management and monitoring practices is crucial for facilitating sustainable business growth. To address these needs, the Board has initiated a restructuring of the organization aimed at optimizing business and administrative processes. This restructuring is intended to enhance efficiency, adaptability, control, and sustainability, which is expected to lead to improved internal effectiveness and contribute positively to the Company’s future growth.
In 2025, the global economy remains clouded by uncertainty. This uncertainty is driven by geopolitical turmoil, which leads to volatility in financial markets. In addition, tight monetary and fiscal policies have resulted in high interest rates set by central banks, and extreme weather events are impacting several regions in developed countries.
The national economy is projected to improve through an increase in public consumption. Furthermore, Bank Indonesia (BI) has taken a proactive step by reducing the BI Rate by 25 basis points to 6.00%. This decision is aimed at maintaining oversight of the national monetary policy while effectively managing an inflation rate of 1.57% year-over-year, which remains within the target range of 2.5 ± 1% for 2024. These actions represent a strategic approach by BI to strengthen the policy mix and support national stability and economic growth.
Based on data from the Indonesian Pharmaceutical Companies Association, the pharmaceutical industry, chemical drug products, and traditional medicine sectors are targeted to grow by 6.59% in 2025, and 7.59% in 2029.
In light of the economic conditions in 2024 and projections for 2025, the Board of Directors is taking a cautious yet optimistic approach. We recognize opportunities from the increasing global awareness of health and natural products. We believe that in 2025, health products are projected to increase due to developments in medical technology and rising public awareness of health. Therefore, Sido Muncul is targeting growth of above 10% for 2025.
Sido Muncul has formulated measurable and adaptive strategic steps in response to market changes, aligning them with potential economic and geopolitical risks that may affect the industry in the future.
In 2024, the Board of Directors implemented the principles of Good Corporate Governance best practices in all operational activities. The implementation of good governance aims to support and create good business performance. This effort can provide strength for the Company in running a sustainable business, have superior competitiveness, and can provide added value to the Company.
The Board of Commissioners is committed to implementing GCG in adherence to the General Guidelines for Corporate Governance in Indonesia (PUG-KI). With these guidelines, the governance carried out by the Company is oriented towards fulfilling aspects of ethical behavior, accountability, transparency, and sustainability. In addition, the Company also implements the ASEAN Corporate Governance Scorecard guidelines for the Company's governance system.
The Board of Directors hopes that good governance will have a positive impact on the growth and sustainability of the Company's business in the future. Therefore, the Company is expected to be able to realize the vision and mission that are its goals.
There were changes in the composition of the Company's Board of Directors in 2024. Information on changes in the composition of the Company's Board of Directors is as follows:
Board of Commissioners Composition in 2024
January 01 – May 15, 2024
| Name | Position |
| David Hidayat | President Director |
| Dr. (H.C) Irwan Hidayat | Director |
| Leonard | Director |
| Darmadji Sidik | Director |
May 15, 2024 - December 31, 2024
| Name | Position |
| David Hidayat | President Director |
| Dr. (H.C) Irwan Hidayat | Director |
| Darmadji Sidik | Director |
| Budiyanto* | Director |
*) Appointed as Director based on the Resolution of the Annual GMS dated May 15, 2024
The Board of Directors would like to express its appreciation and gratitude to all Company personnel, both the Board of Directors and employees for their dedication and contribution to providing the best performance. Therefore, in 2024, the Company was able to grow with increasing operational and financial performance achievements.
The Board of Directors would like to express its heartfelt gratitude to the Board of Commissioners for their thorough oversight and invaluable contributions. The input, recommendations, and evaluation provided by the Board of Commissioners have been instrumental in enabling the Board of Directors to maintain effective control over the Company's operations. This collaborative effort has led to the achievement of strong performance and significant growth in the Company's business.
The Board of Directors would also like to extend its gratitude to the shareholders and stakeholders for the support and trust given to us. In 2024, the Company managed to record good performance with growth in operational and financial aspects. The Company is always committed to increasing the value of fulfilling benefits to the Company's shareholders and stakeholders.
In light of the achievements obtained in 2024, the Board of Directors hopes to continue to improve the performance and quality of the services. The Board of Directors is optimistic that Sido Muncul will be able to maintain its existence and realize a sustainable business in the future.