PT HM Sampoerna Tbk. (Sampoerna/IDX: HMSP) maintained its position as Indonesia’s leading tobacco company in the first half of 2026, despite increasingly challenging market conditions. The company recorded net revenue of Rp56.5 trillion, net profit of Rp4.2 trillion, and a market share of 29.6%.
Nevertheless, total sales volume declined 1.3% compared with the same period a year earlier. The decrease was primarily driven by the continued shift in consumer demand toward lower-priced products, a trend commonly referred to as downtrading, as well as the ongoing circulation of illicit cigarettes. The most significant impact was seen in the Hand-Rolled Kretek Cigarette (SKT) segment, where sales volume fell 13% year-on-year.
The SKT segment holds strategic importance for Indonesia’s economy because of its labor-intensive nature and its extensive linkages to economic activity across the country. The segment supports tens of thousands of jobs, the majority of which are held by women who serve as primary breadwinners for their families.
According to a 2022 study by Airlangga University, the SKT segment generates an economic multiplier effect of 3.8 times. This means that every Rp1,000 of economic activity generated by an SKT manufacturing facility has the potential to create approximately Rp3,800 in broader economic circulation within surrounding communities.
“SKT has been an integral part of Sampoerna’s journey for more than a century and remains one of the company’s strategic pillars. We will continue strengthening this segment as part of our efforts to ensure the long-term sustainability of our business while creating value for stakeholders. Through our operations, Sampoerna supports approximately 90,000 jobs and helps develop the domestic value chain, including through partnerships with 22,500 tobacco and clove farmers via our supplier network,” said Ivan Cahyadi, President Director of Sampoerna.
Sampoerna also appreciates the Government’s decision not to increase tobacco excise rates. The policy, combined with ongoing efforts to combat illicit cigarette trade, helps create a more conducive business environment for legitimate industry players to strengthen Indonesia’s economic ecosystem, contribute to government revenue, and support employment.
Looking ahead, Sampoerna remains focused on creating long-term value through sustained innovation, human capital development, and contributions to Indonesia’s economic growth. Through these three pillars, the company is committed to strengthening its competitiveness, expanding economic opportunities, and delivering sustainable benefits to stakeholders and the wider community.