PT HM Sampoerna Tbk. has announced a USD 166.1 million investment to develop a new production facility for HEETS tobacco sticks in Karawang, Indonesia, enhancing its role in the smokeless tobacco market.

Target Information

PT HM Sampoerna Tbk. (“Sampoerna” or “the Company”) has announced a significant investment of approximately USD 166.1 million for the development of a production facility dedicated to HEETS, tobacco sticks specifically designed for use with IQOS. Located in Karawang, West Java, Indonesia, this facility will be the seventh of its kind globally and the second in Asia, aiming to commence operations in the fourth quarter of 2022. This development focuses on meeting both domestic and export market demands in the Asia-Pacific region.

As an affiliate of Philip Morris International (PMI), Sampoerna's new facility represents its commitment to creating long-term economic value in Indonesia through innovation, research, and technology. Mindaugas Trumpaitis, President Director of Sampoerna, emphasized the importance of this investment, noting it as a testament to Sampoerna and PMI's confidence in Indonesia's investment climate, as well as their commitment to contributing to the national economic recovery initiated by the Indonesian government.

Industry Overview

The tobacco industry in Indonesia has faced significant transformations in recent years, particularly with the growing demand for innovative smoking alternatives. With the increasing global shift towards less harmful tobacco pr