PMI Reaffirms Long-Term Commitment to Sampoerna
Jakarta, CNBC Indonesia - Philip Morris International (PMI) has reaffirmed its long-term commitment to further strengthen the position of PT HM Sampoerna Tbk. (Sampoerna) as one of the key pillars in the company’s global strategy. Sampoerna is considered a key affiliate that plays a significant role in driving innovation, human resource development, and PMI’s business performance.
Vassilis Gkatzelis, President East, South East Asia, Pacific, and Global Travel Retail at PMI, stated that Sampoerna’s presence strengthens the regional supply chain and makes a significant contribution to PMI’s global competitiveness. 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 implements sustainable investments that create jobs and promote the downstream processing 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 both cigarette and smoke-free tobacco products.
“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 create sustainable business progress,” said Vassilis in an interview with CNBC Indonesia recently.
In terms of investment, Vassilis explained that since 2008, PMI has invested US$6.4 billion in Indonesia, including US$330 million, or approximately IDR 5.3 trillion, to build a smoke-free tobacco product manufacturing 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 approximately 200 highly qualified Indonesian experts,” said the former President Director of Sampoerna (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 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 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 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.
According to research, Sampoerna’s economic footprint and business activities provide an annual economic impact of IDR 204.1 trillion, equivalent to approximately 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 can generate economic value of up to IDR 1,700.
Outside the manufacturing sector, Sampoerna actively supports the economic empowerment of the people in line with the Government’s policy direction, especially through the development of the MSME sector in Indonesia. This effort is 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 more than 250,000 retail stores throughout Indonesia, while SETC has reached more than 97,000 participants and fostered approximately 1,600 MSMEs, as part of a continued commitment to strengthen the competitiveness and resilience of the community.
Human Resource Development and Innovation
In the field of human resources, Vassilis emphasized that Sampoerna plays an important role in producing quality talent that can 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 elevates local talent on the global stage,” he said.
He said that about 70 Sampoerna employees are currently working abroad in various strategic functions and leadership positions. According to him, this development shows PMI and Sampoerna’s commitment to preparing future leaders who can face the dynamics of the 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 him, these steps are 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-Hand Philosophy, which ensures benefits for adult consumers, employees, business partners, and shareholders, as well as the wider community to create inclusive and sustainable progress,” he said.