Indonesian Political, Business & Finance News

Philip Morris Reaffirms Long-Term Commitment to Sampoerna

| | Source: FINANCE.DETIK.COM Translated from Indonesian | Economy
Philip Morris Reaffirms Long-Term Commitment to Sampoerna
Image: FINANCE.DETIK.COM

Philip Morris International (PMI) has reaffirmed its long-term commitment to continue strengthening the position of PT HM Sampoerna Tbk (Sampoerna) as one of the important pillars in the company’s global strategy.

Sampoerna is referred to as a key affiliate that plays a major role in driving innovation, human resource development and PMI’s business performance.

President East, South East Asia, Pacific, and Global Travel Retail PMI Vassilis Gkatzelis, stated that Sampoerna’s presence strengthens the regional supply chain and makes a significant contribution to PMI’s competitiveness at the global level.

This role is becoming increasingly important as Sampoerna contributes to the national tobacco industry.

According to Vassilis, Sampoerna has a strong business track record and consistently carries out sustainable investments that encourage the creation of jobs and the downstreaming of tobacco products.

With this foundation, Sampoerna now serves as PMI’s export hub for more than 30 countries in the Asia Pacific region, including cigarette products and smoke-free tobacco products.

“PMI sees Sampoerna as an important pillar in the company’s transformation and part of a long-term commitment to driving Indonesia’s economic growth. These efforts combine business scale, innovation, and social contributions to realize sustainable business progress,” said Vassilis, in a written statement, Wednesday (25/2/2026).

On the investment side, Vassilis explained that since 2008, PMI has invested US$6.4 billion in Indonesia, including US$330 million or equivalent to Rp 5.3 trillion to build a smoke-free tobacco product production facility in Karawang, West Java.

This facility is the seventh in the world and the first in Southeast Asia, and is equipped with a global standard Testing and Analysis Laboratory (Advanced Lab).

“This facility is PMI’s only advanced laboratory in all of Asia and is supported by around 200 highly qualified Indonesian experts,” said the man who previously served as President Director of Sampoerna in 2022-2024.

Vassilis added that Sampoerna, which is now 113 years old, carries a long legacy of the Indonesian tobacco industry and continues to create added value throughout the value chain.

Sampoerna absorbs more than 90,000 direct and indirect workers through 9 directly managed production facilities and 43 Cigarette Production Partners (MPS) owned and operated by cooperatives and local entrepreneurs. Sampoerna also partners with more than 19,500 tobacco and clove farmers in Indonesia.

For smoke-free tobacco products, Sampoerna has partnered with more than 600 MSMEs in 20 cities and is supported by an SRC network throughout Indonesia. This partnership has created more than 1,300 new jobs and expanded adult consumer understanding of smoke-free tobacco products.

Based on Kompas Research and Development (2025), the economic impact and business activities of Sampoerna provide an annual economic impact of IDR 204.1 trillion, equivalent to about 1% of Indonesia’s GDP.

This effect is reflected in a multiplier ratio of 1.7 times, where every IDR 1,000 generated from Sampoerna’s business activities is able to generate economic value of up to IDR 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.

These efforts are carried out through the Sampoerna Retail Community (SRC) and the Sampoerna Entrepreneurship Training Center (SETC) under the Sampoerna Sustainability Program for Indonesia.

Currently, SRC has accommodated more than 250,000 grocery stores throughout Indonesia, while SETC has reached more than 97,000 participants and fostered about 1,600 MSMEs, as part of a continued commitment to strengthening the competitiveness and resilience of the community.

Human Resource and Innovation Development

In the field of human resources (HR), Vassilis emphasized that Sampoerna plays an important role in producing quality talent who are able to compete at the global level. Currently, talent from Indonesia supports PMI’s operations in 39 countries.

“Sampoerna provides quality professionals in the fields of information technology, finance, human resources, and supply chain. This positions Indonesia as a regional capability center and also elevates local talent on the global stage,” said Vassilis.

He said that about 70 Sampoerna employees are currently working abroad in various strategic functions and leadership positions. According to Vassilis, this development shows PMI and Sampoerna’s commitment to preparing future leaders who are able to face the dynamics of international business.

In closing, Vassilis expressed his appreciation to the Indonesian government for its support for the sustainability of the industry, including efforts to maintain economic stability and strict enforcement against illegal cigarettes.

According to Vassilis, this step is very important to create fair competition for the legal industry and support PMI and Sampoerna’s long-term commitment to contributing to the national economy.

“All of Sampoerna’s initiatives are based on the Three Hands Philosophy which ensures benefits for adult consumers; employees, business partners, and shareholders; and the wider community in order to create inclusive and sustainable progress,” he concluded.

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