Sampoerna family to build sugar factories

Sampoerna family to build sugar factories

Indonesia's Sampoerna family, which last month sold control of its cigarette business to Philip Morris International Inc., plans to build sugar factories in Indonesia, said an aide to Vice President Jusuf Kalla.

The Sampoerna family met with Kalla for about a half hour on Thursday to discuss its business plan, said Alwi Hamu, a special aide to Kalla. Their activities will involve "clearing land as well as planting," said Hamu, who accompanied Kalla at the meeting.

The family is keen on any sector of business in Indonesia, particularly agriculture and infrastructure, Hamu told reporters in Jakarta.

For agriculture, the family is considering areas outside Java island, including Sumatra and Papua, he said.

Philip Morris International, a unit of New York-based Altria Group Inc., agreed to buy 40 percent of PT HM Sampoerna, Indonesia's third-biggest cigarette maker, from the founding family for Rp 18.6 trillion (US$1.96 billion).

Michael Sampoerna, great grandson of the founder, declined to answer questions from reporters.

The meeting with Kalla, requested by the family, was attended by Putra Sampoerna, the founder's grandson and Angky Camaro, a Sampoerna director. -- Bloomberg