Philip Morris International’s Indonesian subsidiary, PT Hanjaya Mandala Sampoerna (Sampoerna), has opened a production facility for its smoke-free tobacco products in Karawang, West Java, reports Gatra.
The plant, which was commissioned in the fourth quarter of 2022, represents an investment of more than USD 186 million. “The investment made by Sampoerna is expected to have a positive impact in encouraging innovation and creating economic value in other sectors such as MSMEs, traditional retail, partnerships with farmers and R&D development,” said Coordinating Minister for Economic Affairs, Airlangga Hartarto at the inauguration of Sampoerna’s first smoke-free tobacco product facility in Karawang on 12 January.
The IQOS HEETS factory is focused on meeting the demand for the export market in the Asia Pacific region and domestically. The HEETS factory owned by parent company PMI is the first in Southeast Asia and the seventh in the world.”We really appreciate the investment from Sampoerna to Indonesia. In particular, it’s not just an investment, but also bringing new innovations. This is certainly one of the innovative alternative products,” said Airlangga.
Sampoerna’s President Director Vassilis Gkatzelis said, apart from building a smoke-free tobacco product factory, his company is also committed to creating added economic value through various other things. Starting from increasing research capacity, hiring skilled manpower, purchasing tobacco supplies from local farmers, empowering MSMEs, to increasing Indonesia’s export performance.
Vassilis hopes that Sampoerna’s investment can strengthen Indonesia’s position as a destination for domestic and foreign investment.”Sampoerna’s long-term investment, which is part of Philip Morris International, is proof of our confidence in the certainty of the investment and business climate in Indonesia,” he said.