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CORPORATE STRATEGIC - JAKARTA. PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) has allocated a capital expenditure (capex) of IDR 102 billion in 2024.
Sido Muncul's CEO, David Hidayat, stated that the majority of the capex budget will be used for maintenance and minor production equipment additions at the SIDO factory.
"Capex will also be used to add laboratory equipment and develop research and development," he recently told Kontan.
SIDO's capital expenditure budget is lower than last year. In 2023, Sido Muncul prepared a capex of IDR 197 billion.
However, David is optimistic that the market and economic conditions this year will be better than in 2023. Especially this year there is a five-year event, namely the general election (election).
"As usual, in political years there is a lot of money circulation which indirectly increases people's purchasing power, this is good for retail," he said.
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Not only relying on the domestic market because of election sentiment. SIDO plans to spread its wings in the export market. This opportunity is expected to boost SIDO's revenue.
Currently, SIDO is continuously increasing penetration in the Southeast Asian market, Indo China, and countries on the Arabian and African peninsulas. SIDO will also enter the Japanese market.
"The Japanese market is still wide open starting from the Tolak Angin candy product which has completed its registration there," said David.
This year, SIDO targets the export market to grow at least 35%. Meanwhile, the contribution of export sales reaches 11%–12% of total revenue this year.
