HM Sampoerna: A Strategic Pillar for Philip Morris International in Driving Innovation and...

Jakarta – PT HM Sampoerna Tbk (Sampoerna) continues to strengthen its position as a crucial element in the global strategy of Philip Morris International (PMI). PMI’s long-term commitment to Sampoerna is not merely a financial investment, but a recognition of the company’s strategic role in driving innovation, human resource development, and the overall business performance of PMI. As a key affiliate, Sampoerna not only contributes to the company’s profitability but also serves as a driving force for Indonesia’s economic growth.

Vassilis Gkatzelis, President East, South East Asia, Pacific, and Global Travel Retail PMI, emphasized that Sampoerna’s presence has a significant impact on strengthening the regional supply chain and enhancing PMI’s competitiveness in the global market. The integration of Sampoerna into PMI’s network has created a mutually beneficial synergy, enabling PMI to leverage Sampoerna’s competitive advantages in both domestic and international markets.

Sampoerna’s role is becoming increasingly crucial as it continues to contribute to the national tobacco industry. With a solid business track record and ongoing investments, Sampoerna has successfully created jobs, promoted the downstream processing of tobacco products, and made significant contributions to state revenue through taxes and excise duties. These investments not only create economic value but also have a positive social impact on Indonesian society.

Currently, Sampoerna serves as PMI’s export hub for more than 30 countries in the Asia-Pacific region, including both conventional cigarette products and smoke-free tobacco products. This demonstrates PMI’s confidence in Sampoerna’s ability to meet international quality standards and compete in the global market. This role also strengthens Indonesia’s position as a manufacturing and export hub for tobacco products in Southeast Asia.

“PMI views Sampoerna as an important pillar in the company’s transformation and as part of a long-term commitment to driving Indonesia’s economic growth. This effort combines business scale, innovation, and social contribution to realize sustainable business progress,” said Vassilis. This statement underscores PMI’s commitment to continue investing in Indonesia and supporting the development of Sampoerna as a sustainable and socially responsible company.

Since 2008, PMI has invested a total of US$6.4 billion in Indonesia. This investment includes various projects, including the construction of a smoke-free tobacco product production facility in Karawang, West Java, with an investment value of US$330 million, or approximately Rp 5.3 trillion. This facility is the seventh in the world and the first in Southeast Asia, demonstrating PMI’s commitment to bringing the latest technology and innovation to Indonesia.

The production facility in Karawang is equipped with a global-standard Testing and Analysis Laboratory (Advanced Lab). This laboratory is the only advanced laboratory of PMI in all of Asia and is supported by approximately 200 highly qualified Indonesian experts. The presence of this laboratory ensures that all products produced by Sampoerna meet the highest quality standards and are safe for consumers.

Vassilis, who previously served as President Director of Sampoerna from 2022-2024, added that Sampoerna, which is now 113 years old, brings a long legacy in the Indonesian tobacco industry and continues to create added value throughout the value chain. Sampoerna’s contribution is not limited to economic aspects but also includes social and environmental aspects.

Sampoerna employs more than 90,000 direct and indirect workers through its 9 directly managed production facilities and 43 Mitra Produksi Sigaret (MPS) owned and operated by local cooperatives and entrepreneurs. In addition, Sampoerna also partners with more than 19,500 tobacco and clove farmers in Indonesia. This partnership has a positive impact on the local economy and improves the welfare of farmers.

In an effort to develop smoke-free tobacco products, Sampoerna has partnered with more than 600 MSMEs in 20 cities and is supported by a network of SRCs throughout Indonesia. This partnership has created more than 1,300 new jobs and expanded adult consumer understanding of smoke-free tobacco products. This initiative demonstrates Sampoerna’s commitment to supporting the development of MSMEs and creating jobs in various regions of Indonesia.

Based on Kompas Research and Development (2025), the economic footprint and business activities of Sampoerna provide an annual economic impact of Rp 204.1 trillion, equivalent to approximately 1% of Indonesia’s GDP. This figure shows how important Sampoerna’s role is in the national economy. This effect is reflected in a multiplier ratio of 1.7 times, where every Rp 1,000 generated from Sampoerna’s business activities is able to generate economic value of up to Rp 1,700.

Outside the manufacturing sector, Sampoerna actively supports the economic independence of the people in line with the direction of government policy, especially through the development of micro, small, and medium enterprises (MSMEs) in Indonesia. This effort is carried out through the Sampoerna Retail Community (SRC) and the Sampoerna Entrepreneurship Training Center (SETC) under the umbrella of the Sampoerna Sustainability Program for Indonesia.

Currently, SRC has more than 250,000 retail stores throughout Indonesia, while SETC has reached more than 97,000 participants and mentored approximately 1,600 MSMEs, as part of a continued commitment to strengthen the competitiveness and resilience of the community. These programs provide training, mentoring, and access to markets for MSMEs, so that they can improve productivity and competitiveness.

In the field of human resources (HR), Vassilis emphasized that…