Sampoerna Maintains 30.7 Per Cent Market Share Amid Industry Pressure
PT HM Sampoerna Tbk (Sampoerna) recorded a sales volume of 79.4 billion sticks throughout 2025, maintaining its position as the leader in the national tobacco industry with a market share of 30.7 per cent. During the 2025 Annual General Meeting of Shareholders (AGMS) held in Jakarta on Monday (18/05/2026), the company also reported relatively solid financial performance. Gross profit grew by 11.2 per cent to Rp 20.6 trillion, while net profit remained stable at Rp 6.6 trillion.
President Director of Sampoerna, Ivan Cahyadi, stated that this achievement was supported by pricing strategies and product innovations tailored to the needs of adult consumers. “Our strategy focuses on innovation and strengthening our product portfolio to maintain leadership across all segments, while balancing business growth with contributions to the industry supply chain,” Ivan said in an official release.
The most significant impact has occurred in the Group I cigarette segment, which has traditionally been the largest employer and a major contributor to state excise revenue. Over the last six years, the market share of this segment has dropped by approximately 22 points, from 80 per cent in 2019 to nearly 50 per cent in the first quarter of 2026. This condition is reflected in the company’s performance, with a 8.7 per cent decrease in sales volume in Q1 2026, particularly in the hand-rolled cigarette (SKT) category, which is a labour-intensive segment.
Ivan noted that the government’s decision not to increase excise rates in 2026 is a strategic step in maintaining industry stability. Sampoerna stated it continues to strengthen the downstreaming of the tobacco industry as part of its strategy to ensure business sustainability and create value across the supply chain. In its operations, the company supports approximately 70,000 rolling workers, most of whom are women. They work across six of the company’s production facilities and 43 partner production facilities spread across 35 regencies and cities on the island of Java.
According to a study by Airlangga University, the economic activity from the SKT segment has a multiplier effect of up to 3.8 times. This means every Rp 1,000 of economic activity has the potential to generate a turnover of up to Rp 3,800 in the surrounding community. Kompas Litbang research in 2025 noted that the economic impact of Sampoerna’s business activities reaches approximately Rp 204.1 trillion per year, equivalent to about 1 per cent of Indonesia’s Gross Domestic Product (GDP), with a multiplier ratio of 1.7 times.
In supporting the development of small and medium enterprises, Sampoerna runs several empowerment programmes. The Sampoerna Retail Community (SRC) programme, launched in 2008, has nurtured approximately 250,000 grocery stores across Indonesia. The programme generates a total turnover of approximately Rp 251 trillion per year, equivalent to 9.46 per cent of the national retail GDP in 2025. The company stated that human resource development is a primary focus to support sustainable growth and strengthen its role in the national economy.
With over a century of experience operating in Indonesia, Sampoerna stated it continues to drive innovation and long-term value creation for stakeholders. During the AGMS, Sampoerna also approved a dividend distribution from the 2025 fiscal year profits of Rp 6.55 trillion. This amount is equivalent to 99.95 per cent of net profit, or Rp 56.3 per share. The company also approved the appointment of Joy Kartika Widjaja and Virawaty as members of the Board of Directors, and Umer Jawaid as Director, replacing Johan Bink, effective from the close of the 2026 AGMS.