PT Industri Jamu dan Farmasi Sido Muncul (Sido Muncul) is one of the oldest and largest herbal manufacturers in Indonesia, with history dating back to the 1950s, and is best known for its traditional herbal syrup ‘Tolak Angin’ which literally translates to ‘Push Wind’.
This herbal concoction is based on the traditional medicinal concept that when ‘wind enters’ the body or ‘masuk angin’, this will result in conditions such as the common cold, bloating and so on.
“Tolak Angin is something of a legendary product in Indonesia – all Indonesians will have a few sachets of this with them when they travel abroad in case they feel poorly,” Sido Muncul Head of Sales and Marketing B2B Puspa A. told FoodNavigator-Asia at the Fi Asia Indonesia 2024 show in Jakarta.
“The belief is that ‘masuk angin’ is not yet a state of illness or sickness and so does not yet require medication, so taking herbs instead is the better option.
“Tolak Angin is our MVP as it has been around for a very long time and is the top leader in its category – at last check, this product takes around 75% of the market share for cold remedy products.”
The traditional Tolak Angin syrup recipe has long been a trade secret, though it is known to contain ingredients such as ginger, wild mint, fennel, cumin, screw tree, cloves, and honey – but recently the company has also launched a sugar-free variant.
“One of the reasons for sugar-free innovation is in anticipation of a sugar tax in Indonesia, where many manufacturers here are lowering their sugar in advance to ensure being able to get a good NutriGrade grading,” she said.
“The other reason is that less-sugar products are in line with the health and wellness trend we are currently seeing across the region – many young consumers in particular now have a good understanding of preventative care versus treatment, and are also aware of the risks of high sugar consumption.
“Both of these fall in line well with our products, as preventative care has meant an increased demand for herbals and herbal products and making a sugar-free variety of our product available ensures we are keeping up with the necessary consumer needs.”
Tolak Angin is already being exported to various other markets such as the Philippines, Malaysia, Nigeria, Hong Kong, Australia and more, where there are consumers which the firm considers to be ‘culturally compatible’, i.e. those consumers that understand and accept the concept of ‘masuk angin’, believing that herbal remedies can play a role in illness prevention.
Market challenges
With its entire business heavily focused on herbs and herbal extracts, Sido Muncul’s prime concern is with its herbal crop supply.
“The whole climate change issue is very real, and has had some impact on our supply to date which leads to a whole host of other issues,” she said.
“The main one is of course cost, where raw materials are now up to three times more expensive than before due to unpredictable harvests.
“This is a very major area for our business as around 80% of what we do depends on herbs, so we are also working to help farmers to mitigate these issues and ensure we can maintain the affordability of our products.”
