Sampoerna Opens New Third-Party Facility

Sampoerna and Koperasi Karyawan Redrying Bojonegoro have opened a new third-party operator (TPO) production facility for hand-rolled kretek cigarettes in Dander, Bojonegoro Regency, East Java.

During the inauguration ceremony, East Java Governor Khofifah Indar Parawansa welcomed the investment and its impact on regional employment. “I hope MPS Dander will improve the welfare of not only its employees but also their families and the community in Bojonegoro. Amidst the digital ecosystem transformation era, the SKT industry and TPOs can be a solution, especially for workforce absorption,” she said in a statement.

“The multiplier effect of the SKT industry is extraordinary. I believe that TPO Dander will strengthen the economy of Bojonegoro Regency,” said Khofifah.

Khofifah also expressed satisfaction with the high level of female participation in the facility’s workforce. “Because women who have their own income will become mothers of the nation,” she noted. “Therefore, the recruitment of women as workers at TPO Dander affirms women’s participation in development.”

Sampoerna’s head of hand-rolled manufacturing, Sinta Hartanto, said his firm was committed to continued value creation. “As a company that has been operating for more than 110 years in Indonesia, our vision is to continue playing an active role in supporting the growth of the national economy by encouraging down-streaming in the tobacco industry, long-term investments, and workforce absorption to create sustainable value. This additional partnership is part of our efforts to realize that vision,” he said.

With the absorption of more than 3,000 workers in TPO Dander along with additional absorptions in various other factories and TPOs, Sampoerna currently has more than 80,000 direct and indirect employees, about 90 percent of whom are working in SKT production facilities.

“In addition to new partnerships with local entrepreneurs/cooperatives, as well as opening new employment opportunities for thousands of workers, Sampoerna’s new SKT manufacturing facilities and additional TPOs will also increase raw materials absorption of tobacco and clove from Indonesian farmers. Hand-rolled cigarettes require twice as much tobacco and cloves as machine-made cigarettes,” explained Sinta.

TPS Dander that is owned by Koperasi Kareb became the 39th TPO in Java and the fourth in Bojonegoro Regency that partners with Sampoerna. All TPOs are owned and operated by local entrepreneurs and/or local cooperatives to produce Sampoerna’s SKT brands. Sampoerna operates seven production facilities in several cities/regencies in Java, including four SKT production facilities in Surabaya, Malang, and Probolinggo, East Java.