Sampoerna Supports Indonesian MSMEs Playing Global Supply Chain Role with Digitalization

Jakarta, 28 October 2022 – Through a collaboration with Business 20 (B20) Indonesia, Indonesian Chamber of Commerce and Industry (KADIN), and Bisnis Indonesia, PT HM Sampoerna Tbk. (Sampoerna) held a webinar entitled “MSMEs Digitalization Places Indonesian MSMEs in Global Supply Chains” on Friday (28/10). In this webinar, micro, small and medium enterprises (MSMEs) shared their knowledge and experience. They also listened to presentations regarding the importance of the digitalization of MSMEs in Indonesia in global supply chain.

The event marked the peak of a series of digitalization training sessions for business owners entitled “MSMEs for Indonesia (Advanced and Prosperous Businesses for Indonesia)” conducted by Sampoerna from August to September 2022. More than 9,000 MSME owners attended this series of events. The entire series of training entitled MSMEs for Indonesia is expected to be concrete proof of the commitment of B20 members as stated in the B20 Inclusive Closed Loop Pledge.

In his keynote speech delivered at the event, the Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesian MSMEs are the driving force of the Indonesian economy. “Bank Indonesia data shows that 87% of MSME owners were affected by the pandemic, and 93% of them were negatively affected in sales. In addition, data from the Ministry of Cooperatives and MSMEs stated that the MSME sector contributed 61% of GDP, equivalent to Rp 8,573 trillion and absorbed 97% of the national workforce. The government will continue to provide training to the MSME sector. The development of MSMEs is the main prerequisite in driving the Indonesian economy," said Airlangga.

In the aspect of digitalization, the Minister for Cooperatives and SMEs, Teten Masduki, also emphasized that Indonesian MSMEs need to carry out digital transformation so that they can play a role at the global level to face economic disruption.

The Ministry of Cooperatives and SMEs recorded 20.5 million MSME owners who have launched digital on-boarding and it would accelerate the process so that the target of 30 million digitally-connected MSMEs can be achieved. This initiative was made after learning from the COVID-19 pandemic, where MSMEs that went through the digital transformation process has higher resilience and better business growth in line with the potential of the digital economy, which is predicted to continue to grow to reach Rp 4,531 trillion.

"With the initiative and collaboration between the stakeholders, it is hoped that it will be able to aggregate MSMEs to enter into the ecosystem. I hope that the matters discussed in today's panel can create an innovative strategy, increase capacity, and increase the competitiveness of MSMEs so that they are better prepared to participate in the global supply chain. I invite all stakeholders to collaborate in the efforts to accelerate the digital transformation of MSMEs to support an inclusive and competitive national economic recovery for Indonesia," said Teten.

Head of B20 Indonesia, Shinta Kamdani, conveyed how valuable the momentum of Indonesia's G20 and B20 Presidency are to encourage financial inclusion through strengthening MSME digital transformation efforts. “We entirely and fully support concrete action to realize the matters we recommend to G20 leaders. In the context of creating support for MSMEs, B20 Indonesia is introducing and promoting a cooperative model for empowering MSMEs in a multi-stakeholder, holistic, and sustainable supply chain, which I previously called as the Inclusive Closed Loop System, "said Shinta.

Meanwhile, External Affairs Director of PT HM Sampoerna Tbk. Elvira Lianita emphasized the importance of a multi-stakeholder approach for the efforts to digitalize MSMEs. “We support the program of KADIN B20 Indonesia, namely the Inclusive Closed Loop model, to make the MSME sector the main focus in driving the economy. We believe that the initiatives of KADIN B20 can be one of the legacies to encourage multi-stakeholder collaboration in the future so that Indonesian MSMEs can grow and play a role in global supply chain. Through collaboration between big-scale business owners (corporations), the government, the private sector, and with the support of technology, more and more Indonesian MSMEs will go global," she said in her opening statement.

On the occasion of the panel discussion, various experts and figures discussed the importance of collaboration to increase the competitiveness of Indonesian MSMEs in the global market through digitalization. The panelists consisted of Deputy IV for Digital Economy, Manpower, and MSMEs of the Coordinating Ministry for Economic Affairs, Rudy Salahuddin; Deputy for Entrepreneurship of the Ministry of Cooperatives and SMEs, Siti Azizah; Directorate of Trade Through Electronic Systems for Trade and Services of the Ministry of Trade, Kukuh Sri Harjanto representing the Deputy Minister of Trade; Deputy Chairman of KADIN for Entrepreneurship, Aldi Haryopratomo; and Sampoerna's Head of External Affairs, Ishak Danuningrat.

Sampoerna for Indonesian MSMEs

Sampoerna's Three Hands Philosophy is the foundation of Sampoerna's commitment to the development of Indonesian MSMEs. The continuous efforts to create added value for Indonesia is carried out through the “Sampoerna Untuk Indonesia” program. Sampoerna's track record of continuing to create added value for Indonesian MSMEs is consistently realized through two programs, which are Sampoerna Entrepreneurship Training Center (SETC) and the Sampoerna Retail Community (SRC).

The series of webinars entitled “MSMEs for Indonesia,” is also a part of realizing this added value commitment. In the panel discussion, Mr. Aldi Haryopratomo, Deputy Chairman of KADIN for Entrepreneurship, explained about KADIN's "Wiki Wirausaha", which is a forum for information, discussion, and collaboration for entrepreneurs, where Sampoerna also plays a role by providing SETC on the platform.

KADIN has also launched “Wiki B20,” which provides vital information such as the standardization and certification processes needed to allow Indonesian MSMEs be able to export their products and form business relations with international companies. "The essence of this inclusive partnership program is the spirit to help each other. Indonesia will be prosperous and equal if big-scale companies want to help small-scale ones, and those who have succeeded are willing to assist those who have not yet succeeded," said Aldi.

Tandres Sianturi, one of the MSME owners who was present and succeeded in developing the MyKripik product, expressed his appreciation to Sampoerna. According to Tandres, his business sales increased thanks to the knowledge and training provided by Sampoerna which was related to optimizing the use of digital platforms.

"I hope SETC continues to sow good seeds for MSMEs and also for Indonesia to recover faster and rise stronger," he concluded.


About PT HM Sampoerna Tbk. (Sampoerna)

Founded in 1913, Sampoerna – an affiliate of Philip Morris International Inc. – is a leading tobacco company in Indonesia, with a primary focus on the manufacturing and sale of kretek (clove) cigarettes. The Company produces a number of best-known clove cigarette brands, such as Sampoerna A, the legendary “King of Kretek” Dji Sam Soe, Sampoerna U, and Sampoerna Kretek. The Company also distributes the Marlboro brand throughout Indonesia through a long-term distribution agreement with PT Philip Morris Indonesia.

Sampoerna owns and operates six factories located in Surabaya, Pasuruan, Probolinggo, Malang, and Karawang. The Company establishes partnership with 38 Third-Party Operators (TPOs) in Java – with a total workforce of around 65,000 direct and indirect employees, mostly in the production of hand-rolled clove cigarettes. It has a total of 110 zone branches offices, sales offices, and distribution centers throughout Indonesia.

Sampoerna is one of the largest companies by market capitalization on the Indonesian Stock Exchange, where it trades under the ticker symbol “HMSP”.

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Media Contact:

Reza Juniarshah

Head of Corporate Communications

PT HM Sampoerna Tbk.