Production and Delivery of Alternative Medicines [herbal] / Supplements

Herbal medicines

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Production and Delivery of Alternative Medicines [herbal] / Supplements
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Biotechnology and Pharmaceuticals
Business Model Description

Build a network of B2B and B2C manufacturers, distributors and suppliers of herbal-based products in the form of pharmaceutical preparations, traditional medicines and affiliated products. Example of a company active in this space:

Sido Muncul, founded in 1940, is a publicly listed herbal medicine and food products company. It produces and markets a variety of consumer products related to herbal medication, such as the Jamu Tolak Angin (15). Affinity Equity Partners acquired 21% stake in PT Industri Jamu dan Farmasi Sido Muncul Tbk (IDX:SIDO) from PT. Hotel Candi Baru in December 2017 for a transaction value of USD 317.8 mn. (15)

Expected Impact

Promotion of alternative medicines [herbal] / supplements to promote local industry and exports, while ensuring improved nutrition and affordable medicines

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Zero Hunger (SDG 2)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Responsible Consumption and Production (SDG 12)
Sector Sources
  • (1) Bappenas. 2021. Indonesia's Voluntary National Review 2021. (2) Republic of Indonesia. 2019. Roadmap of SDGs Indonesia Towards 2030. (3) SEKRETARIAT NASIONAL SDGS. 2019. Indonesia's SDG National Action Plans-RAN SDGs 2021-2024. (4) MAMPU-AIPEG. 2020. Consequences of Child Marriage in Indonesia. (5) BPS. 2018. 2018 Socio-economic National Survey (Susenas). (6) Healthcare Resource Guide: Indonesia. 2019. The U.S. Department of Commerce’s International Trade Administration. (7) EY Indonesia. 2017. Ripe for investment: the Indonesian health care industry post introduction of universal health coverage. (8) Macrotrends. 2021. Indonesia Healthcare Spending 2000-2022. (9) Republic of Indonesia. 2020. Indonesia's 2020-2024 National Medium-Term Development Plan (10) Cekindo. 2021. Pharmaceutical Sector in Indonesia. (11) Ministry of Health of the Republic of Indonesia. 2020. SURAT EDARAN NOMOR : HK.02.02/IV.2243/2020. (12) BadanPOM. 2020. Kawal Jamu Menjadi Warisan Budaya Kebanggaan Indonesia Yang Lestari dan Berdaya Saing, Badan POM Gelar Bimbingan Teknis Bagi Pelaku Usaha Jamu Gendong di Yogyakarta. (13) The Jakarta Post. 2014. Women show off “jamu” skill in festival. (14) IDNFinancials. 2020. Export of Indonesian herbal medicine product increases by 14.08% in 9M 2020.
IOA Sources
  • (15) Helios Capital Asia. 2021. Affinity Equity Partners acquires 21% stake in Sido Muncul. (16) Cekindo. 2021. Food Supplement Indonesia: How to Invest in the Sector. (17) KebijakanIndonesia. 2021. The Rising Demand for Indonesian Herbal Remedies. Kebijakan Kesehatan Indonesia. (18) IDX. 2021. PUBLIC EXPOSE/ PAPARAN PUBLIK TAHUN 2021 PT KIMIA FARMA TBK. (19) The Jakarta Post. 2020. Market reports paint a bright, post-pandemic future for Indonesian ‘jamu'. (20) SimplyWallSt. 2021. Indonesian (IDX) Growth Pharmaceuticals & Biotech Stocks. (21) SidoMuncul. 2021. MENGENAL SIDO MUNCUL. (22) Nutraingredients-Asia. 2018. Herbal supplements in Indonesia: On-trend ingredients and pressing health concerns revealed. (23) POM. 2021. FREQUENTLY ASKED QUESTION. (24) BadanPOM. 2021. SIARAN PERS BADAN POM KAWAL PENGEMBANGAN HERBAL BERBASIS JAMU NUSANTARA UNTUK TINGKATKAN DAYA SAING PRODUK HERBAL NASIONAL. (25) Sido Muncul. 2022. REPORT OF THE DIRECTORS. (26) Republic of Indonesia. 2021. Annexes Indonesia’s Voluntary National Review . (27) World Bank. 2022. Out-of-pocket expenditure (% of current health expenditure) - Indonesia. (28) Statista. 2021. Indonesia: preventive care spending in urban areas 2019. Statista. (29) Hendro D Situmorang. 2021. 90% Bahan Baku Obat Covid-19 Masih Impor. (30) Dinas Komunikasi dan Informatika Kabupaten Nganjuk. 2020. Kemenkes Sarankan Masyarakat Manfaatkan Obat Tradisional. (31) Universitas Indonesia. 2021. Peran Obat Herbal dan Suplemen Kesehatan dalam Menangani Covid-19. (32) Ruthland Biodynamics. 2022. Environmental impact of herbal medicine. (33) KEMENTERIAN KOORDINATOR BIDANG PEREKONOMIAN REPUBLIK INDONESIA. 2020. Konsumsi Jamu Meningkat, Pemerintah Berdayakan UMKM dengan Pendekatan Klaster Obat Tradisional. (34) NADFC. 2010. CHALLENGES AND OPPORTUNITIES OPPORTUNITIES IN REGULATING REGULATING HERBAL MEDICINES MEDICINES IN INDONESIA. (35) University of Indonesia. 2018. Perkembangan Bahan Baku Obat Tradisional di Indonesia Terus Meningkat. (36) BPS. 2021. Susenas Maret 2021. (37) KataData. 2020. Belanja Rumah Tangga Meningkat Selama Pandemi Covid-19. (38) Ministry of Health of the Republic of Indonesia. 2020. SE Dirjen Yankes nomor: HK.02.02/IV/2243/2020. (39) Republic of Indonesia. 2022. APBN 2022. (40) Ministry of Health. 2020. Rencana Aksi Program 2020-2024. (41) BPOM. 2019. Peraturan Kepala BPOM Nomor 32 Tahun 2019. (42) Republic of Indonesia. 2021. Peraturan Presiden (PERPRES) Nomor 49 Tahun 2021.,,tentang%20Bidang%20Usaha%20Penanaman%20Modal (43) Republic of Indonesia. 2012. MoH Regulation No. 007 of 2012. (44) Republic of Indonesia. 2017. Kepmenkes No. HK.01.07/MENKES/650/2017. (45) BKPM. 2020. BKPM regulations of the Republic of Indonesia number 7 of 2020. (46) Ministry of Finance. 2021. Ini Dukungan Pemerintah Untuk Industri Jamu, Suplemen Kesehatan, Kosmetik, Spa dan Aromaterapi. (47) Ministry of Finance. 2019. MOF Regulation Number 128/ PMK.010/2019. (48) Republic of Indonesia. 2021. Peraturan Presiden (PERPRES) Nomor 10 Tahun 2021. (49) Ministry of Industry. Direktori Perusahaan Industri. 2021.