Realizing Increased Investment, Innovative Products of Manufacturing Industry Able to Penetrate Export Markets

By : Nata Kesuma | Friday, February 03 2023 - 11:02 IWST

illustration. Tobacco planting by PT HM Sampoerna Tbk (HMSP) partner farmers. HM Sampoerna Tbk (HMSP) has been running a partnership program with tobacco farmers entitled 'Integrated Production System' for more than a decade. (ist)
illustration. Tobacco planting by PT HM Sampoerna Tbk (HMSP) partner farmers. HM Sampoerna Tbk (HMSP) has been running a partnership program with tobacco farmers entitled 'Integrated Production System' for more than a decade. (ist) - The development of an innovative Tobacco Processing Industry continues to be encouraged by the Government, and at the same time, it is expected to increase investment. The Tobacco Processing Industry also has a broad multiplier effect and is a sector that absorbs a high enough workforce.

The Coordinating Minister for Economic Affairs Airlangga Hartarto virtually inaugurated the production facility and the initial export recall of innovative smoke-free tobacco products by PT HM Sampoerna Tbk. in Karawang, West Java, Thursday (12/01). Initial exports were made to Malaysia and the Philippines, followed by exports to 40 other countries.

"The investment made by PT HM Sampoerna Tbk. is expected to have a positive impact in encouraging innovation, as well as creating economic value in many sectors, including the MSME sector, traditional retail, partnerships with farmers, and R&D development," said the Coordinating Minister Airlangga.

PT HM Sampoerna Tbk. has realized an investment of USD186 million, exceeding the previously targeted investment commitment. As a result, the production facility will start operating in the fourth quarter of 2022 with a capacity of 15.45 billion cigarettes per year and will involve approximately 500 skilled workers supported by research and development facilities.

In the doorstop session following the inauguration ceremony, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said that the initial export of this innovative tobacco product was clear evidence that it was part of the strategy of the manufacturing industry sectors.

"So, we get two of these, we get investment, for exports, this boosts our trade balance. Then its multiplier effect in the real sector, we get it all," concluded Coordinating Secretary Susiwijono.                                             

President Director of Sampoerna Vassilis Gkatzelis, on this occasion, also appreciated the Indonesian Government’s conducive investment climate and commitment to maintaining national economic stability.

Also present at the inauguration were the Head of the National Research and Innovation Agency (BRIN), the Head of the National Standardization Agency (BSN), and the Director General of Agro-Industry, Ministry of Industry. 

News Comment

Today's Industry

President Jokowi visited PYCH, in Jayapura City, Papua Province, Tuesday (21/03/2023). (Photo: BPMI Setpres/Laily Rachev)

Rabu, 22 Maret 2023 - 10:40 WIB

The song "Yamko Rambe Yamko" Welcomes the President's Arrival at PYCH

Starting the second day of his visit to Papua Province, Indonesian President Joko Widodo (Jokowi) visited the Papua Youth Creative Hub (PYCH), Jayapura City, on Tuesday (21/03/2023). 

President Joko “Jokowi” Widodo

Rabu, 22 Maret 2023 - 09:31 WIB

President Jokowi: Papua Youth Creative Hub to Stimulate Creativity of Papuan Youth

The newly inaugurated Papua Youth Creative Hub (PYCH) in Jayapura City is expected to provide space for Papuan youths to develop creativity and innovation in various fields, such as fashion,…

President Jokowi arrives at Sentani Airport, Jayapura regency, Papua province, Monday (03/20). (Photo by: BPMI of Presidential Secretariat/Laily Rachev)

Rabu, 22 Maret 2023 - 08:30 WIB

President Jokowi to Inaugurate Papua Youth Creative Hub

President Joko “Jokowi” Widodo kicked off a working visit to Papua province on Monday (03/20).

Founder dan Chief Executive Officer (CEO) Fuse Andy Yeung (right) and COO Fuse Ivan Sunandar.

Rabu, 22 Maret 2023 - 06:55 WIB

Fuse Achieved More Than Usd 200 Million Of Gwp and 150 Million Policies For 2022

During the Grand New Office Opening event on 17th March, 2023, insurtech company Fuse announced more than 150 million policies, with GWP exceeding USD 200 million (IDR 3 trillion) being achieved…

President Jokowi at the handing over of the COVID-19 Pandemic Handling Award, at the Dhanapala Building, Ministry of Finance, Jakarta, Monday (20/03/2023). (Photo: Public Relations of Setkab/Jay)

Senin, 20 Maret 2023 - 16:40 WIB

President Jokowi Gives Appreciation for the Contribution of Various Parties in Handling the COVID-19 Pandemic

RI President Joko Widodo (Jokowi) presented awards to various parties who have contributed and worked hard in efforts to deal with the COVID-19 pandemic in the country.