In Support of Green Economy Transformation, Sampoerna Inaugurates 10,550 Solar Panels in Pasuruan
Pasuruan, 1 December 2023 – PT HM Sampoerna Tbk. (Sampoerna/IDX: HMSP) inaugurated 10,550 ground-mounted solar panels in its production facility area in Pasuruan, East Java. This initiative is part of Sampoerna's efforts to achieve the Company’s carbon neutrality target in its production facilities by 2025. The solar panels are installed on over 7 hectares of land and can generate up to 7 Megawatt peak (MWp) of electricity which is comparable to the electricity to power more than 12,000 houses. This initiative was also complemented by the planting of 999 trees in the Sampoerna’s Pasuruan factory.
This initiative is a realization of Sampoerna's environmental sustainability commitment to create long-term, sustainable value in Indonesia that is in line with the Indonesian government's priorities in realizing the green economic transformation, including through achieving net zero emissions and low carbon development by 2060.
The Governor of East Java Khofifah Indar Parawansa inaugurated Sampoerna's solar panels. In her speech, Khofifah expressed her appreciation for Sampoerna's active role in environmental sustainability, "We thank Sampoerna for its commitment to environmental sustainability. What Sampoerna has done is remarkable. Hopefully, Sampoerna can set an example for other companies in converting to new and renewable energy".
Also attending the inauguration with the Governor was ad interim Regent of Pasuruan Andriyanto. “We congratulate Sampoerna for successfully constructing, operating, and utilizing renewable natural energy with the inauguration of 10,550 solar panels today. This is proof that the industry can grow while maintaining environmental sustainability. We hope that Sampoerna can be an example for other industries," said Andriyanto.
On this occasion, the President Director of Sampoerna Vassilis Gkatzelis expressed his appreciation to the Indonesian Government for the efforts to overcome climate change as well as the support and collaborations with the private sector. "We strongly hope that our sustainability initiatives can contribute to the Indonesian Government's vision in realizing the green economic transformation, especially in achieving net zero emissions and reducing environmental impacts in general," said Vassilis.
Vassilis said that Sampoerna puts sustainability as an integral part of the company's vision to create added value in Indonesia. Sustainability principles are realized through the “Sampoerna Untuk Indonesia” Sustainability Program Umbrella by adopting the Environmental, Social, and Governance (ESG) framework.
In various provinces across Java Island, Sampoerna owns 7 directly-operated production facilities including a smoke-free product factory in Karawang. "We are putting efforts to achieve carbon neutrality in all production facilities by 2025," he explained.
The solar panels in Pasuruan are an example of the efforts to support this endeavor. The operation of solar panels in combination with a biomass boiler can reduce scope-1 emissions (natural gas) by around 67 percent and reduce scope-2 emissions (electricity) by around 24 percent. Sampoerna has been utilizing environmentally friendly energy sources from solar panels since 2017 for its production facilities in Surabaya, Malang, and Karawang, as well as PLN’s renewable energy power plants. As a result, since 2022, all electricity supply for Sampoerna's production facilities is entirely (100%) driven by clean energy.
Sampoerna’s initiatives in environmental action are part of the power resource transformation for Sampoerna's production facilities as an effort to be able to fully use renewable energy. This is an important step in Sampoerna's efforts to achieve the target of carbon neutrality in its production facilities by 2025. Sampoerna's various sustainability initiatives have resulted in the PROPER award by the Ministry of Environment and Forestry (KLHK) for two of Sampoerna's production facilities, namely the Green rating for the Pasuruan Plant and the Blue rating for Karawang Plant.
As a company that has been operating for 110 years in Indonesia, Sampoerna’s commitment to creating value in Indonesia is also realized through continuous investment. Since 2205, Sampoerna has invested more than US$6.3 billion in Indonesia. Most recently, Sampoerna realized an additional investment earlier in 2023 through the construction of a new production facility for innovative smoke-free tobacco products in Karawang, West Java, focusing on exports to Asia Pacific and the domestic market.
The realization of this investment is part of Sampoerna’s efforts to support the government's priority to encourage investment, increase exports of finished products with a high added value, and enhance the industry down-streaming by involving more than 20,000 tobacco and clove farmers, as well as approximately 1,700 suppliers of goods and services from Indonesia. “Sampoerna’s long-term investment is proof of our vote of confidence in the investment climate of Indonesia. We are delivering our commitment to creating economic value and social impact through R&D capability expansion, advancement of scientifically substantiated smoke-free products, job opportunities for highly skilled workers, purchasing local tobacco supplies, MSMEs development, operating a digital hub, as well as increasing export performance. And of equal importance, we synergize our operational activities with efforts to improve environmental quality so that we support the Government in realizing Green Economy,” concluded Vassilis.
About PT HM Sampoerna Tbk. (Sampoerna)
Founded in 1913, Sampoerna – an affiliate of Philip Morris International Inc. – is the leading tobacco company in Indonesia. The scope of activities of the Company consists of manufacturing and trading kretek cigarettes as well as smoke-free tobacco and nicotine-containing products. Sampoerna produces several well-known Kretek brands such as Sampoerna A, the legendary “King of Kretek” Dji Sam Soe, and Sampoerna Kretek. Sampoerna also distributes Marlboro, the leading international cigarette brand, throughout Indonesia through a long-term distribution agreement with PT Philip Morris Indonesia.
Sampoerna operates seven owned production facilities in Surabaya, Probolinggo, Malang, Pasuruan, and Karawang, including a production facility to manufacture innovative smoke-free tobacco products. Sampoerna also partners with 38 Third Party Operators all over Java owned and operated by Cooperatives or Regional Entrepreneurs. Overall, Sampoerna employs more than 76,000 employees, directly and indirectly, mostly in the production of hand-rolled kretek cigarettes. Sampoerna distributes the product through 109 sales and distribution offices throughout Indonesia. Sampoerna’s Indonesian made products reach over 40 destinations through exports, with Indonesia acting as a hub.
Sampoerna is a publicly listed company on the Indonesia Stock Exchange (IDX). Sampoerna's stocks are traded with code “HMSP”.
For more information, please visit: www.sampoerna.com