President Director of HM Sampoerna, Ivan Cahyadi, at the Technovation event in Jakarta, Wednesday (June 2, 2025).
PT HM Sampoerna Tbk. (Sampoerna), together with its parent company Philip Morris International (PMI), reaffirmed the importance of science-based innovation as a key element in driving the transformation of the tobacco industry toward a better future. In line with this, PMI also highlighted Indonesia’s strategic role as a hub for innovation, production, and export hub of smoke-free products to the Asia-Pacific region
PMI Senior Vice President of External Affairs, Christos Harpantidis, stated that innovation is not merely about creating new technologies, but a call to address global challenges through responsible and contextual approaches. He emphasized that real, impactful innovation can only happen when it is aligned with the unique characteristics and needs of the local market and supported by cross-sector collaboration.
“That’s why we invest in Indonesia - not only because of its strategic scale, but because we see strong potential for collaboration with stakeholders to drive meaningful change. We believe meaningful innovation comes from working together, not acting alone,” said Christos at the Technovation 2025 event in Jakarta on Wednesday (7/2/2025).
Technovation 2025 served as a strategic platform for discussions and knowledge-sharing on how science and technology are the main pillars in providing better alternatives for adult consumers. Sampoerna’s smoke-free products eliminate combustion, which results in an average of 90–95% lower levels of harmful and potentially harmful substances compared to cigarettes.
On the same occasion, Sampoerna President Director, Ivan Cahyadi, stated that Sampoerna remains committed to continuous innovation grounded in scientific research on smoke-free tobacco products that will be marketed. This aims to offer better choices for adult smokers who would otherwise continue using tobacco or nicotine products.
As a concrete form of this commitment, in 2023 Sampoerna invested USD 330 million or approximately IDR 5.3 trillion to build an innovative smoke-free tobacco product manufacturing facility in Karawang, West Java. This facility is PMI’s first smoke-free tobacco product plant in Southeast Asia and the seventh in the world.
“This facility is equipped with a globally standardized Testing and Analysis Laboratory. It is PMI’s only Advanced Lab in Asia, supported by around 200 highly qualified Indonesian experts. They are Indonesia’s best talents, conducting testing and quality analysis for smoke-free products marketed not only in Indonesia but also for other PMI affiliates across the globe,” Ivan explained.
Ivan added that this is proof that Indonesia is not just a key market but also a global center of excellence for research and development of smoke-free tobacco products.
This commitment is also reflected in the range of smoke-free products designed to meet the preferences of adult consumers who would otherwise continue using other smoke-free tobacco or nicotine products. Sampoerna’s portfolio includes heated tobacco products such as IQOS with TEREA tobacco sticks and BONDS by IQOS with BLENDS by A sticks; VEEV electronic cigarettes; and ZYN nicotine pouches.
“Since Q4 2024, we also introduced BONDS by IQOS with special BLENDS by A sticks to suit adult consumers’ preferences. The BLENDS is also available in a clove variant made with authentic Indonesian cloves and is now available in 20 major cities across Indonesia,” said Ivan.
Beyond being innovative based on science and technology, Sampoerna’s smoke-free products also serve as a catalyst in encouraging real economic contribution to the nation by creating added value. Their presence increases the absorption of locally produced cloves from Indonesian farmers and has fostered partnerships with 600 local MSMEs in 20 cities across Indonesia. These partnerships have created over 1,300 new jobs and involved more than 150,000 members of the Sampoerna Retail Community (SRC) in the smoke-free product distribution ecosystem.
The MSME entrepreneurs have expressed appreciation, noting positive economic impacts after joining the smoke-free products distribution ecosystem. One example is Maja Family. Chief Marketing Officer, Omar Karim Prawiranegara shared that, in addition to creating jobs, their business experienced growth after designating part of the café as an IQOS-friendly area, aligning with Maja Family image as a modern, inclusive place that prioritizes the comfort of all guests.
“All these efforts - from investment, sourcing of local raw materials, MSME partnerships, job creation, to export contributions - represent Sampoerna’s tangible role in national economic development and value creation. We are also proud to play a significant part in improving public health by providing smoke-free products for adult smokers,” Ivan concluded.