Tradition and Technology: Indonesia
- Special Report
- September 11, 2023
- 0
- 2 minutes read
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.
Sampoerna Profit Jumps by One Third
Growth was driven in part by a revival of Indonesia’s hand-rolled kretek segment.
Sampoerna Opens Third-Party Factory
The Indonesian cigarette manufacturer now employs more than 90,000 people.
Gudang Garam to Build Toll Road
The plan marks GG’s second infrastructure project, following the completion of an airport.
Sampoerna Opens New Third-Party Facility
Located Dander, East Java, the facility will manufacture hand-rolled kreteks.
Inscrutable Islands
Home to a number of tobacco varieties, Indonesia is among the world’s most diverse leaf origins.
Support for Indonesian Vape Tax
YLKI rejects industry arguments that vaping can help smokers quit conventional cigarettes.
Indonesia: Bentoel Delisted
Part of BAT today, Bentoel has been listed on the IDX since 1990.
Indonesia to Collect New Vape Taxes
Taking effect Jan. 1, the new levies will be on top of existing excise duties.
Indonesia Adds Vapes to Inflation Basket
The move aims to reflect changes in technology, income and consumption patterns.
Indonesia Alarmed by Smoking Rates
More than one third of the population lights up, according to the most recent figures.
Sampoerna Expands
The company will invest $42 million in hand-rolled clove cigarette manufacturing facilities throughout Java.
Serving the Spice Islands
Hertz Flavors celebrates its first year of operating in Indonesia.