PT Hanjaya Mandala Sampoerna Tbk. commits over US$ 166 million to expand its production capacity in Indonesia amid evolving market challenges and a focus on sustainability.

Target Company Overview

PT Hanjaya Mandala Sampoerna Tbk., commonly known as Sampoerna, has a rich history of operating in the Indonesian tobacco industry for over 109 years. As a prominent player, Sampoerna has significantly contributed to the national economy through long-term investments, aiming to enhance the economic value throughout the tobacco supply chain and broader stakeholder engagement via sustainable programs. Since 2005, Sampoerna has committed more than US$ 6.1 billion in investments in Indonesia, demonstrating their confidence in the country's economic climate.

On November 1, 2022, Sampoerna's President Director Vassilis Gkatzelis emphasized the company's dedication to supporting the Indonesian government's economic recovery efforts post-pandemic by initiating sustainable long-term investments. This commitment seeks to create added value for the economy, including the generation of new job opportunities. Additionally, Sampoerna is advancing a production facility for tobacco sticks branded as HEETS for IQOS in Karawang, investing US$ 166.1 million to enhance local production capacity while promoting partnerships with local suppliers and community entrepreneurship training.

Industry Overview in Indonesia

The tobacco industry in Indonesia remains robust, significantly impacting the country's economy. As one of the largest producers of kretek cigarettes—cigarettes containing a mix of tobacco and clove—Indonesia's market dynamics have s