Welcoming 2024, Sampoerna Expands Partnership with Local Cooperative to Open a New Third-Party Operator for Hand-Rolled Kretek Cigarettes in Bojonegoro
A manifestation of Sampoerna’s commitment to supporting regional economy through down-streaming and absorption of thousands of workforces to create sustainable value for the community and broader ecosystem
Bojonegoro, 30 January 2024 – PT HM Sampoerna Tbk. (Sampoerna/IDX: HMSP) expanded its partnership with local cooperatives, namely the Koperasi Karyawan Redrying Bojonegoro (Bojonegoro Redrying Employees Cooperative/Koperasi Kareb), through the opening of a new Third-Party Operator (TPO) production facility for hand-rolled kretek cigarettes in Dander, Bojonegoro Regency, East Java. The inauguration of TPO Dander is part of the realization of Sampoerna's plan to increase SKT production facilities through the opening of Sampoerna's SKT production facility and the addition of TPOs in several regencies/cities in Java in 2024 which will have a direct impact on the absorption of thousands of new workers.
The Governor of East Java Khofifah Indar Parawansa inaugurated the TPO Dander SKT factory and expressed her appreciation for the opening of the new factory which will positively impact the regional economy. "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.
“The multiplier effect of the SKT industry is extraordinary. I believe that TPO Dander will strengthen the economy of Bojonegoro Regency,” said Khofifah.
Furthermore, continued Khofifah, she was delighted that most of the workers recruited were women. “Because women who have their own income will become mothers of the nation. Therefore, the recruitment of women as workers at TPO Dander affirms women's participation in development," she said,
Khofifah also said that Koperasi Kareb is a successful example for other cooperatives. “A cooperative that owns a corporation. That is TPO Dander, which is PT Kareb Alam Sejahtera, and its parent is Koperasi Kareb. Hopefully, this can be a reference for the economic role of cooperatives in Indonesia,” she explained.
“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,” said the Head of Hand-Rolled Manufacturing of Sampoerna, Sinta Hartanto.
With the additional 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% 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 4th 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.
On the same occasion, the Director of Koperasi Kareb and the President Director of PT Kareb Alam Sejahtera (TPO Dander) Sriyadi Purnomo said, the opening of TPO Dander and the new workforce absorption will create a multiplier effect for the surrounding community. “The presence of Koperasi Kareb can bring blessings and benefits to the society in Bojonegoro as well as play an active role in helping the government reduce poverty and unemployment rates,” said Sriyadi.
“This cannot be separated from the significant impact of the SKT industry, especially in creating a multiplier effect. Thousands of hand-rollers have been able to positively impact the economy of their families. Additionally, markets, boarding houses, and transportation grow along with the presence of the SKT industry,” he added.
“We sincerely thank the Governor of East Java who has shown tremendous attention to this industry, especially its workers. We also appreciate the Acting Regent of Bojonegoro and the government of Bojonegoro Regency who have helped us in realizing TPO Dander. Hopefully, Koperasi Kareb and TPO Dander can be one of the pioneers in helping the government reduce poverty,” said Sriyadi.
“We hope that the inauguration of TPO Dander, and additional workforce in the existing TPOs will increase formal employment absorption and contribute to the local and national economy. This is another realization of Sampoerna’s commitment to supporting national development through down-streaming. We believe that the objective down-streaming is ultimately to create more value and a multiplier effect for Indonesia, to give positive impact to society at large,” concluded Sinta.
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 focusing on export to Asia Pacific and the domestic market. Sampoerna also partners with 39 Third Party Operators all over Java and employs – directly and indirectly – more than 80,000 employees, mostly in the production of hand-rolled kretek cigarettes. Sampoerna distributes the product through 109 sales and distribution offices throughout Indonesia.
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