YOGYAKARTA — Dedication to environmental conservation and local community empowerment has led PT Industri Jamu dan Farmasi Sido Muncul Tbk to win a prestigious award at the 2026 Jogja Brand and Business Awards (JBBA). The leading herbal medicine company was named the Pioneer of Sustainable Herbal Industry & Local Partnership at the award night held at the Kasultanan Ballroom of the Royal Ambarrukmo Yogyakarta.
Sido Muncul's President Director, Irwan Hidayat, expressed deep appreciation for the award. According to Irwan, close collaboration with local farmers is not just a temporary business strategy, but a solid foundation built since 1998. This step began with the company's challenge in obtaining standard quality herbal raw materials due to reliance on an inconsistent conventional supply chain.
Through intensive guidance, thousands of farmers spread across Semarang, Purwokerto, Wonosobo, to the Special Region of Yogyakarta have now become the backbone of Sido Muncul's production. Every day, the factory processes around 50 tons of raw materials, of which 60 percent, or equivalent to 30 tons, is supplied directly by partner farmers. Sido Muncul acts as a standby buyer (offtaker), providing market price certainty while boosting the economic welfare of the farmers.
Not only focusing on social empowerment, Sido Muncul also consistently applies circular economy principles through a zero-waste concept in factory operations. The leftover dregs from herbal medicine production are reprocessed into operational fuel. In addition, the transition to clean energy is strengthened by the use of solar panels, compressed natural gas (CNG), wood pellets, and the utilization of non-subsidized electricity to reduce carbon emissions.
On the other hand, Sido Muncul has pioneered the concept of wellness tourism since 2003 at their factory complex in Ungaran, Central Java. Today, this educational destination is visited by around 100,000 people annually from various parts of the country. Sido Muncul also encourages the government to continue integrating the potential of this local herbal medicine industry into the national health tourism roadmap.
