Jamu is Indonesian distinctive
herbs as well as a kind of Indonesian cultural heritage that could be a source
of jamu firm’s competitive advantage in global market. Global issue such as
‘back to nature’ has given a wide range of opportunities for jamu business further
development. But, the real situation in Indonesia now is just as the opposite.
There are some obstacles, both endogenous as well as exogenous, that threatened
the sustainability of jamu industry. This paper was based on an explorative
study which conducted literature study as well as field study to capture
current phenomena in jamu industry and aimed to suggest further development of
jamu industry. This research concluded some suggestions for both firms as
players in jamu industry as well as government as industry regulator.
Keywords : industrial analysis, competitive advantage, sustainability.