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Herbal medicine tycoons climb as commodity chiefs slide
The country’s 50 richest still managed to add US$5.6 billion to their combined wealth, which totaled $134.6 billion last year
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PT Sido Muncul director Irwan Hidayat talks to journalists in Jakarta, on Nov. 18, 2013. (JP/R. Berto Wedhatama)
T
ycoons in the pharmaceutical and herbal medicine sectors have gained ground as Indonesians grow more conscious of health and wellbeing and the commodities business slumps.
Forbes Indonesia has released its Indonesia’s 50 Richest List for last year, and among the big earners are the country’s top executives in the pharmaceutical industry. One of them is Irwan Hidayat, the director of publicly listed herbal manufacturer PT Sido Muncul.
He moved up 11 ranks to 30th place after earning US$350 million over the past year. His company’s sales in the third quarter of 2019 were recorded at Rp 2.13 trillion ($154.8 million), constituting 9.48 percent annual growth.
Sido Muncul’s overall growth was led by the sales of its herbal medicine and supplements segment, which grew 11.82 percent year-on-year (yoy) to Rp 1.4 trillion.
Read also: Next generation of Indonesian tycoons: Who are calling the shots now?
“One of the reasons herbal medicine sales went up was because people think that the medicine has fewer side effects than the chemical ones, so people keep buying the former,” Institute for Development of Economics and Finance (Indef) executive director Tauhid Ahmad told The Jakarta Post on Monday.
In addition, he said, herbal medicine was more affordable than prescribed medication, especially for minor illness such as the flu and stomachaches.
