Jakarta, The Indonesia Post – The Coordinating Minister for the Economy Airlangga Hartarto inaugurated the production facility and the initial export release of innovative smoke-free tobacco products by PT HM Sampoerna Tbk to Malaysia and the Philippines.
“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 Coordinating Minister Airlangga in his statement in Jakarta , Friday.
The development of the innovative tobacco processing industry continues to be encouraged by the government and at the same time 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.
PT HM Sampoerna Tbk. has realized an investment of 186 million US dollars, exceeding the previously targeted investment commitments. Production facilities will start operating in the fourth quarter of 2022 with a capacity of 15.45 billion cigarettes per year and involve approximately 500 skilled workers supported by research and development facilities. After the initial exports to Malaysia and the Philippines, further exports are planned to 40 other countries.
At the inauguration ceremony, Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, said that the first export of this innovative tobacco product was clear evidence that it was part of the strategy of one of the manufacturing industry sectors.
“So we get two of these, investment gets, for exports it means this boosts our trade balance. Then the multiplier effect in the real sector can be all,” said Sesmenko Susiwijono.
On this occasion, President Director of Sampoerna Vassilis Gkatzelis also appreciated the Government of Indonesia for the conducive investment climate and commitment to maintaining national economic stability. (mhn/bbs)
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