Djarum Speaks Out on Overseas Expansion, Citing Business Diversification
Djarum Group has stated that approximately 90 per cent of its investments are still located in Indonesia. The company noted that expanding business operations abroad is a part of business development, rather than a transfer of funds away from Indonesia.
PT Djarum’s Corporate Communications Manager, Budi Dharmawan, stated that the investment in a paper mill, which has been a topic of discussion on social media, was carried out during 2/2023–2024. This investment relates to the tobacco wrapping paper business, the products of which are marketed to tobacco companies abroad.
“The investment in that paper mill took place in 2023–2024 during President Jokowi’s era. It is a business strategy for the tobacco wrapping paper factory,” Budi told Bisnis, as quoted on Friday (11/09/2026).
According to Budi, Djarum Group has an affiliation with the Muria Jaya paper mill. In addition to expanding business lines, the investment is also aimed at developing the tobacco paper business.
Budi mentioned that the financing for the paper mill investment was conducted through loans. He did not specify the total amount of Djarum Group’s investments abroad.
“To strengthen financing, we used loans. I do not memorise the total investment abroad,” he said.
Djarum Group’s expansion is not limited to businesses related to the tobacco industry. The company is also adding to its business portfolio in other sectors within the country.
During the administration of President Prabowo Subianto, Budi noted that Djarum Group expanded into the tea business. This business involves local products that have returned to national ownership.
“During Prabowo’s era, we added a tea business line, bringing local products back into national hands. They were previously sold, and thankfully, we were able to buy them back [to become national again],” said Budi.
In addition to tea, Djarum Group is also developing a noodle business. Most recently, the company held a groundbreaking ceremony for a dairy cattle farm in Brebes, Central Java, in July 2026.
Budi stated that this series of investments is part of the company’s strategy to continuously develop its enterprises. He emphasised that Djarum Group’s commitment to Indonesia remains significant.
According to him, approximately 90 per cent of the investments from the owners of Djarum Group remain in Indonesia. This is reflected in the presence of various company businesses in the domestic market.
“This has been our business from the beginning; we have an ambition to grow together with Indonesia. We want to build a prosperous and welfare-oriented society,” said Budi.
He added that Djarum Group’s businesses in Indonesia include the tobacco industry. Products such as Djarum Super remain a part of the company’s business in the domestic market.
Budi stated that the company will continue to expand its business lines while maintaining its operations in Indonesia.
“Whenever it happens, 90% is in Indonesia,” he asserted.