Tradition and Technology: Indonesia
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.
Indonesia: Tax Collections Fall Short
The government blames downtrading, illicit trade and a shift from smoking to vaping.
KT&G to Build Second Factory in Indonesia
The expansion fits into the Korean firm’s plan to earn half of its sales abroad by 2027.
Indonesia Legalizes E-Cigarettes
The move allows smokers to find alternative products, according to supporters.
Sampoerna Announces Executive Changes
Johan Bink has been named operations director and Gunnar Beckers marketing director.
Indonesian Customs Seizes Millions in Goods
Authorities say they are determined to create a better trading environment.
Sampoerna Sales Up 12.5 Percent
Although profitability remains lower than before Covid-19, key metrics improved during the second half of 2022.
Sampoerna Commits to Value Creation
President Vassilis Gkatzelis highlights Sampoerna’s investments in Indonesia.
Gudang Garam Owner Accused of Fraud
The case involves troubled loans made by a Chinese bank to a wig company.
Indonesia Mulls Ban on E-Cigarettes
The government says it will thoroughly assess the health risks of vaping before deciding.
PMI Inaugurates HEETS Factory in Indonesia
The facility is the company’s seventh HNB factory worldwide and its first in Southeast Asia.
Indonesia to Support Tobacco Farmers
The measure aims to help those in tobacco sector cope with the uncertain global economy.
Into Indonesia
Chinese e-cigarette manufacturers are expanding into Indonesia to better serve their export markets.
