First in ASEAN, Indonesia Inaugurates Smoke-Free Tobacco Products Factory

PT HM Sampoerna Tbk. (Sampoerna) inaugurated the production facility and first export release of innovative smoke-free tobacco products for IQOS under the HEETS brand in Karawang, West Java. This production facility is part of the company’s investment and economic value creation in Indonesia. The HEETS factory is the first Philip Morris International (PMI) production facility for innovative smoke-free tobacco products in Southeast Asia and the seventh in the world. Investment realization reached more than US$ 186 million or IDR 2.88 trillion (exchange rate IDR 15,500).
“The investment made by Sampoerna is expected to have a positive impact in encouraging innovation and creating economic value in many sectors, including the MSME sector, traditional retail, partnerships with farmers, and R&D development,” said Coordinating Minister for the Economy Airlangga Hartarto marking the inauguration, Thursday ( 12/1/2023).
The production facility will start operating in the fourth quarter of 2022 and will be under construction since the end of 2021. The HEETS factory is focused on meeting the demand for the export market in Asia Pacific and domestically to encourage investment and increase exports of finished goods.
“As a company that has been operating in Indonesia for almost 110 years, we hope to continue to contribute to the Indonesian economy through sustainable investment and economic impact on the chain and ecosystem of the national tobacco industry as a whole,” said Sampoerna President Director Vassilis Gkatzelis.
Vassilis added, in addition to factory construction, Sampoerna is also committed to creating added economic value which includes increasing research capacity, absorbing high-skilled workers, purchasing local tobacco supplies, empowering MSMEs which includes supporting digitalization and increasing the capacity of traditional retailers, operating digital service centers, and increase in export performance. PMI has invested US$ 9 billion to develop and introduce innovative smoke-free tobacco products.

Indonesia Exports Smoke-Free Tobacco Products to Malaysia-Philippines

Today, 12 January 2023, PT HM Sampoerna Tbk in Karawang, West Java, made its first export to the Asia-Pacific market, one of which is Malaysia and the Philippines. Sampoerna has realized this US$ 186 million investment.
“We appreciate Sampoerna for committing to realize an investment of US$ 166.1 million for this innovative tobacco product. With a capacity of 15.45 billion cigarettes per year, it involves approximately 500 skilled workers supported by research facilities and development investment of US$ 600 thousand,” said Indonesia’s Coordinating Minister for the Economy, Airlangga Hartarto.

January 12, 2023, detikFinance