Sustainability assessment in the halal herbal medicine sector : a comparative study of PT Herba Penawar Alwahida Indonesia and PT Sido Muncul Tbk

Abstract

This study aims to assess and compare the social impact of sustainable investment inthehalalherbal medicine business sector through the Social Return on Investment (SROI) approachand, withcase study of PT Herba Penawar Alwahida Indonesia (HPAI) and PT Sido Muncul. This researchisamixed-methods study combining qualitative and quantitativedata to answer the research questions. Data collection techniques were carried out through in-depth interviews, direct observation, studyvisits to companies, and documentation studies. This study shows that the integration of sustainablefinance principles inthe halal herbal medicine business sector provides a significant contributiontobusiness sustainability and consumer trust. Through a comparison between PT Herba PenawarAlwahida Indonesia and PTSido Muncul, it can be concluded that the two companies have differentapproaches in implementing sustainability principles, both in terms of governance, financing, andhalalproduct marketing strategies. PT Herba Penawar Alwahida Indonesia emphasizes sustainabilitywithasharia-based approach and strong religious values, while PT Sido Muncul integrates sustainabilityfocuss on a modern corporate framework. Both PT HNI and PT Sido Muncul have implementedSROIparameters with their respective levels of impact achievement. Integration of sustainable financenotonly strengthens competitiveness but also creates long-term added value for companies, consumers, and the environment. Therefore, it is important for other industry players to start adopting sustainablefinance practices, while prioritizing halal principles in all stages as part of their business strategy, especially in sectors that have ethical and health-based market potential such as halal herbal medicine. Focusing on increasing public awareness of green medicine or halal herbal medicineamongIndonesians and the global Muslim community, this presents a significant opportunity for theIslamicmedicine industry to developbroader business plans and increase literacy among Muslims andnon-Muslims regarding choosing halal herbal medicine alternatives. Therefore, collaborationbetweenstakeholders is clearly needed to disseminate the trend of green medicineor Indonesia's bioeconomy. Furthermore, halal herbal medicine companies areexpected to improve the quality and credibilityoftheir medicines by conductingcertification tests and compiling sustainability reports for publictransparencyof company operations. Furthermore, we need to encourage the expansionof productionand marketing of halal herbal medicine companies in Indonesia toexpand the market overseas.