Many firms in New Economy tend to depend more on intangible resources (i.e. knowledge and information) than tangiblernresources as in Old Economy. This shifting has made many firms favour the information technology for their daily business conducts today.rnThe fast spreading of information leads to the fiercer competition than before. The great recognition of intangible assets somewhat calls forrnthe notion of a new business model. Some enterprises and researchers expect this effort may generate more value for today’s competitionrnthrough combining all assets in proper judgments. Jamu, Indonesian traditional herbal medicine, also cannot avoid the impact of NewrnEconomy competition. Jamu enterprises need to preserve the traditional value in the midst of the modern lifestyle. Then, the urgency tornmaintain Jamu competitive advantage is felt necessary. To provide the new business model of Jamu that is deemed as appropriate in NewrnEconomy’s competition is the aim of this study. Through analysing various literature, the authors heavily consider Product Service Systemrn(PSS), specifically the product-oriented type to construct a new business model for Jamu.