In the tobacco industry, Indonesia is best known for its rich variety of leaf tobaccos, its characteristic clove cigarettes and its relative tolerance for smoking; the Southeast Asian nation is one of the few countries that has neither signed nor become a party to the Framework Convention on Tobacco Control.
While those characteristics still hold true, they are increasingly only part of the story, as Indonesia now also manufactures some cutting-edge new nicotine products. Attracted by the country’s rapidly growing economy, young workforce and business-friendly policies, investors have been setting up shop here to supply not only the large domestic market but also other countries in the region.
For example, in January 2023, Philip Morris International inaugurated a factory for the production of IQOS HEETS consumables in Karawang, West Java. Leading atomization companies such as Smoore, have built production facilities, as well. And in September 2023, KT&G announced the construction of a second factory in Indonesia, which in addition to traditional cigarettes is slated to produce heat-not-burn products.
The combination of heritage and forward-thinking makes Indonesia a market to watch.
The plan marks GG’s second infrastructure project, following the completion of an airport.
Located Dander, East Java, the facility will manufacture hand-rolled kreteks.
Home to a number of tobacco varieties, Indonesia is among the world’s most diverse leaf origins.
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Part of BAT today, Bentoel has been listed on the IDX since 1990.
Taking effect Jan. 1, the new levies will be on top of existing excise duties.
The move aims to reflect changes in technology, income and consumption patterns.
More than one third of the population lights up, according to the most recent figures.
The company will invest $42 million in hand-rolled clove cigarette manufacturing facilities throughout Java.
Hertz Flavors celebrates its first year of operating in Indonesia.
With its first overseas production facility, Smoore has boosted the resilience of its operations.
As a leading tobacco market, Indonesia features prominently in KT&G’s global ambitions.