Karawang, March 25, 2025 - PT HM Sampoerna Tbk. (Sampoerna) carried out the export release and expansion of its innovative smoke-free tobacco product IQOS – TEREA at its production facility in Karawang, West Java. This strategic move reinforces Sampoerna's commitment to supporting Indonesia's economic development through long-term investment and strengthening national economic growth through the downstreaming of the tobacco industry.
On this occasion, Sampoerna released exports to Malaysia, one of the largest export markets for the innovative smoke-free tobacco product IQOS - TEREA. For the first time, Sampoerna also exported to Armenia as a new export destination. Additionally, on March 20 and 24, Sampoerna exported innovative smoke-free tobacco products to Japan and the Netherlands (Rotterdam) for the Duty-Free market.
In 2024, Sampoerna exported its innovative smoke-free tobacco product IQOS - TEREA to 15 export destinations, nearly doubling compared to 2023. The export value of Sampoerna, together with PT Philip Morris Indonesia (PMID), reached nearly USD 250 million in 2024 for cigarette products and innovative smoke-free tobacco products. Of this amount, approximately 20 percent, or more than USD 50 million, came from the export of innovative smoke-free tobacco products, nearly doubling compared to 2023. This increase reflects the success of Sampoerna’s expansion strategy in growing its global market.
Furthermore, to meet raw material needs and support operational activities, Sampoerna collaborates with over 22,000 tobacco and clove farmers and utilizes goods and services from 1,700 local suppliers. Additionally, to market innovative smoke-free tobacco products, Sampoerna partners with 600 local MSMEs across 20 cities in Indonesia, creating more than 1,300 new jobs and engaging over 18,000 members of the Sampoerna Retail Community (SRC).
Sampoerna Director, Elvira Lianita, stated that this is concrete proof of Sampoerna’s efforts to expand export destinations while contributing to driving Indonesia’s economy. "This effort also demonstrates Sampoerna's active role in supporting Indonesia’s economic growth through sustainable investment, downstreaming, innovation, job creation, human resource development, and value creation to help the government achieve its economic growth target of 8%."
The Director General of Customs and Excise, Askolani, who attended the export release and expansion event for innovative smoke-free tobacco products, expressed appreciation for Sampoerna's investment commitment. "We appreciate Sampoerna's consistency in strengthening our economy. This undoubtedly supports our goal of growing the economy from the current 5% to 8%, as we all hope," he said.
He noted that innovative smoke-free tobacco products, developed through extensive research, have long-term economic impacts, including job creation, tax and excise revenue, and foreign exchange earnings for the country. He added that the Directorate General of Customs and Excise would continue to support these efforts through export and import services.
In 2023, Sampoerna invested USD 330 million, equivalent to IDR 5.3 trillion, in building an innovative smoke-free tobacco product manufacturing facility in Karawang, West Java. This facility is Philip Morris International’s (PMI) first innovative smoke-free tobacco product plant in Southeast Asia and the seventh worldwide. In addition to serving the domestic market, the facility also supplies exports across the Asia-Pacific region, positioning Sampoerna as PMI's export hub to more than 30 destinations for both cigarettes and heated tobacco products.
The Karawang production facility is equipped with a world-class research and development laboratory (advanced lab), one of PMI's four innovative smoke-free tobacco product laboratories worldwide and the only one in Southeast Asia. This laboratory conducts testing and quality analysis for PMI affiliates’ innovative smoke-free tobacco products, supported by 200 highly qualified Indonesian experts.
"The presence of innovative smoke-free tobacco products in Indonesia is a testament to the company’s commitment to continuous innovation based on scientific research and harm reduction approaches in tobacco products. This effort aims to provide a better alternative for adult smokers," said Elvira.
Elvira added that Sampoerna’s achievements would not have been possible without the full support of the Government, particularly the Ministry of Finance of the Republic of Indonesia, which has been one of the driving forces behind the company’s business growth. "We believe there is still potential to increase exports. Therefore, we need support from the Ministry of Finance in the form of appropriate policies to boost exports to global markets," Elvira stated.
Additionally, Elvira expressed appreciation for the government’s commitment to creating a favourable business investment climate in Indonesia. The government's consistent efforts in maintaining economic stability and growth have inspired optimism among businesses and investors.
"Sampoerna hopes that the strong collaboration between the government and the industrial sector can continue to achieve shared goals in improving community welfare and national economic growth," Elvira concluded.
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About PT HM Sampoerna Tbk. (Sampoerna)
Founded in 1913, Sampoerna – an affiliate of Philip Morris International Inc. – is a leading tobacco company in Indonesia. The Company’s business activities include manufacturing and trading cigarettes, smoke-free tobacco products, and nicotine-containing products. Sampoerna produces several well-known kretek brands such as Sampoerna A, the legendary “King of Kretek” Dji Sam Soe, and Sampoerna Kretek. Sampoerna also distributes Marlboro brand cigarettes across Indonesia through a long-term distribution agreement with PT Philip Morris Indonesia.
Since its acquisition by Philip Morris International (PMI) in 2005, Sampoerna’s investment value has reached over USD 6.4 billion. Currently, Sampoerna operates nine production facilities in Surabaya, Pasuruan, Probolinggo, Malang, Karawang, Blitar, and Tegal, including a manufacturing facility for smoke-free tobacco products focusing on exports to the Asia-Pacific region and domestic markets. Sampoerna also partners with 43 Cigarette Manufacturing Partners across Java, employing – directly and indirectly – over 90,000 workers, mostly in Hand-Rolled Kretek Cigarette production. Sampoerna distributes its products through 109 sales and regional distribution offices across Indonesia.
Under the Sampoerna untuk Indonesia Sustainability Program, Sampoerna is committed to developing MSMEs through the Sampoerna Retail Community (SRC) and Sampoerna Entrepreneurship Training Center (SETC). Currently, SRC empowers over 250,000 grocery stores nationwide, with an economic impact reaching IDR 236 trillion per year, equivalent to 11.4% of the 2022 National Retail GDP. Meanwhile, SETC has trained more than 97,000 MSME entrepreneurs across Indonesia.
Sampoerna is a publicly traded company on the Indonesia Stock Exchange under the stock code “HMSP.”
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Media Contact:
Micko Rustantra
Head of Corporate Communications
PT HM Sampoerna Tbk.
Email: contact@sampoerna.com