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5 August 2020 (closed)
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Philip Morris Indonesia, Philip Morris International's affiliate in Indonesia, will invest USD $174 million to increase production capacity of white and clove (kretek) cigarettes. About USD $78 billion will be used to enhance production capacity at its two existing factories in Karawang (West Java), while the remaining USD $96 million will be used to establish a new factory, specifically for the production of Marlboro-branded cigarettes. This new factory will be located next to its other two factories in Karawang.
The new factory will also have a tobacco processing facility, which implies that the company will no longer need to import processed tobacco from abroad. The new factory is scheduled to be completed in 2014 and will provide employment to 600 people.
HM Sampoerna President Director Paul Janelle said that Philip Morris has already invested USD $390 million in Karawang since 2006 and is committed to engage in further long-term investments in Indonesia. In 2012, Philip Morris Indonesia and its subsidiary HM Sampoerna exported around USD $24 million in tobacco products. They expect to double this result in 2013 after production in the new factory has commenced. Janelle said that Indonesia is envisaged to be the center of the Marlboro brand production for markets in the Asia-Pacific region.
Philip Morris Indonesia started its business in Indonesia in April 1984, producing and distributing its products. In 2006, it started its own manufacturing activities in Bekasi (West Java). Its Bekasi Manufacturing Center produces Marlboro, including Marlboro Full Flavor, Marlboro Lights, Marlboro Menthol and Marlboro Black Menthol for domestic sale in Indonesia.
In 2005, Philip Morris Indonesia successfully acquired a majority stake in HM Sampoerna. To date, Philip Morris Indonesia owns 98.18 percent of HM Sampoerna's shares. The latter is one of the largest Indonesian companies on the Indonesia Stock Exchange (IHSG) in terms of market capitalization.