Jakarta. Herbal medicine giant Sido Muncul revealed it would allot Rp 102 billion ($6.5 million) in capital expenditure (capex) for 2024.

According to Sido Muncul’s president director David Hidayat, the money will go into paying for maintenance. Sido Muncul, also known by its ticker symbol SIDO, will use the capex funds to set up additional minor production facilities, and lab equipment, as well as research and development (R&D). 

“The capex funds will come from the company’s revenue,” David told Investor Daily over the weekend.

The high demand in the herbal medicine market prompted SIDO to add more facilities. Sido Muncul is also eyeing the eastern Indonesia market which still has room for growth. David also said that the company did not have to worry about today’s geopolitical tensions when it comes to procuring the raw materials needed for production. A large part of the raw materials that SIDO uses are homegrown, according to David.

“There may be several raw materials for beverage products. But we don’t have any problems with the supply,” David said.

There are also plans for a management shake-up.

“This move is expected to improve our performance and drive growth in 2024 and beyond,” David said.