Sales, Marketing, and Communication Towards Adult Consumers
Sampoerna conducts responsible sales and marketing practices for our adult consumers. We also actively take part in preventing youth access to tobacco and nicotine products. In addition, we also support the government’s efforts, particularly those conducted by the Directorate General of Customs and Excise (DGCE), to fight the circulation of illegal cigarettes.Youth Access Prevention Program (YAP)
We believe that tobacco product manufacturers can actively participate in preventing youth smoking. Since 2013, Sampoerna has been actively campaigning for the prohibition of sales of tobacco and nicotine products to minors under 18 years of age.
To this end, we work with traditional and modern retailers in creating and implementing the Youth Access Prevention (YAP) program. YAP aims to increase public awareness regarding the prohibition of sales of tobacco and nicotine products to minors under 18 years of age.
We implement this by placing communication materials such as stickers and wobblers, showing videos related to this program at 1.5 million points of sale, as well as utilizing technology through the AYO TOKO by SRC application to increase the understanding of SRC owners throughout Indonesia.
Illicit Tobacco Prevention
The circulation of illicit tobacco products results in losses for the stakeholders, including losses in excise revenue for the government, product quality loss for the consumers, and loss in reputation damage and sales revenue for the Company.
A national illicit cigarette survey conducted by Gadjah Mada University (UGM) found that illicit cigarette circulation in Indonesia made up 5.5 percent of the total cigarette circulation in the country in 2022.
Sampoerna supports the Directorate General of Customs and Excise (DGCE) effort against illicit cigarettes circulation by being involved in the identification, authentication, and investigation of illicit tobacco products that imitate Sampoerna’s products or Sampoerna’s smuggled products.
More information regarding Sales, Marketing, and Communication Towards Adult Consumers can be found here: Sustainability Report 2022
Product Innovation as Alternative for Adult Consumers
We are aware that smoking can cause health problems for adult consumers. Hence, in consideration of the health risks associated with smoking, Sampoerna introduces scientifically substantiated smoke-free products (“SFP”) as a better alternative for adult smokers who decide to continue using tobacco or other nicotine products.
Our parent company, PMI, has set a sustainability strategy, which involves the company’s aim for a smoke-free future.
To that end, PMI has developed a portfolio of SFP. SFP is the term PMI uses to refer to products that are not combustible tobacco products. SFP is designed for adult smokers who would otherwise continue to smoke. However, SFPs are not risk-free, and contain nicotine, which is addictive.
Socioeconomic Wellbeing Within Our Supply Chain and Communities
As part of our sustainability initiative, which is in line with our Three Hands Philosophy, we are committed to creating values within the communities where we operate. This includes our effort to develop local Micro, Small, and Medium Enterprises (MSMEs) within the community.
Under “Sampoerna Untuk Indonesia” (Sampoerna for Indonesia) sustainability umbrella program, the Company makes consistent efforts in developing the capability and competitiveness of MSMEs in Indonesia through our two programs, namely Sampoerna Entrepreneurship Training Center (SETC) and Sampoerna Retail Community (SRC).
Sampoerna Entrepreneurship Training Center (SETC)
Sampoerna Entrepreneurship Training Center (SETC) is an entrepreneurship training program that was established in 2007 with supporting facilities on a 27-hectare land in Pasuruan, East Java.
The SETC program includes entrepreneurship training, both hard skills and soft skills in the fields of agricultural cultivation, animal farm, and other skills; applied research; market assistance and networking; business consulting; as well as MSME networks.
To date, SETC has trained more than 67,000 participants from across Indonesia, through its multiple entrepreneurship-related programs.
Sampoerna Retail Community (SRC)
Sampoerna showed its commitment to managing MSMEs by establishing its subsidiary company, PT SRC Indonesia Sembilan, to foster and develop traditional retail stores throughout the archipelago through Sampoerna Retail Community (SRC) program.
Starting in 2008, only 57 retail stores in Medan, North Sumatra that joined SRC. Today, SRC has become the largest modern retail store community with more than 225,000 retail stores throughout all provinces in Indonesia, serving millions of shoppers in their neighborhood.
Sampoerna Rescue (SAR)
Through Sampoerna Rescue (SAR), we focus on disaster preparedness, emergency response and evacuation, recovery, revitalization, and mitigation to create a strong and resilient community.
In addition to programs for communities that focus on economic empowerment, Sampoerna also contributes to society through disaster programs. As a country that lies on the Ring of Fire, Indonesia is very susceptible to potential natural disasters, and therefore requires a reliable human resource in facing and overcoming natural disasters.
Sampoerna Rescue Training Center (SARTC) is an organization founded in 2002 by Sampoerna that is a SAR Training Center. Sampoerna Rescue supports the development of disaster preparedness and skills for emergency response and evacuation. Sampoerna Rescue was also involved in humanitarian missions in handling natural disasters that have occurred in several regions in Indonesia throughout 2022.
Fostering Healthy and Fair Working Environment
We ensure the health and safety of all our employees and manage risks in the workplace to maintain business continuity and everyone’s health.
Workplace conditions are regulated in the Guidebook for Success (the company’s code of ethics) as well as in the principles and practices of health, safety, and security as regulated by our parent company.
Sampoerna implements capacity-building programs on occupational health and safety, competency development, and engagement. We also prioritize initiatives to create an inclusive and diverse working environment.
Workplace Health and Safety
Sampoerna ensures the health and safety of every person who has access to the workplace and manages risks in the workplace so that business continuity can be maintained, and everyone’s health can be managed.
This commitment includes Management System implementation for Environment, Health, and Safety (EHS). We also conduct Occupational Health and Safety (OHS) certification on a yearly basis.
Employee Training
The Company improves employee competencies that support organizational performance through training, education, and individual development programs according to the needs of the organization. We facilitate opportunities for employees to learn, grow, and contribute to Company goals while being able to adapt to their needs and expectations.
Fair Working Environment
Equality in the workplace is a form of our commitment to respect for human rights and protection of labor norms. Equality of access and treatment covers aspects of employment and a person’s career journey from commencing vacancies to retirement.
As a labor-intensive industry, the Company is unique because most of our permanent employees are women. In fact, our hand roller workforce is exclusively female.
In addition, Sampoerna also provides equal opportunity for women to hold strategic positions in managerial level. This commitment towards equality is also reflected in fair renumeration for every employee. This commitment is evidenced by obtaining the global EQUAL-SALARY certification since 2018.
Industrial relations
We also create fairness in the workplace by respecting workers’ rights under the industrial regulations, considering that most of the workforce are laborers. The Company guarantees labor rights through healthy and harmonious industrial relations.
In accordance with government regulation, Sampoerna acknowledges labor union as workers’ representative that fights for worker’s collective needs. This commitment is written in the Collective Labor Agreement (CLA).
At Sampoerna, relations with employees through dialogue between the Company and workers’ representatives that is carried out constructively, openly, in a family manner, without pressure, and is always oriented towards the needs and aspirations of
workers as a means of building harmonious relations between employers and workers.
