Sales, Marketing and Communications to Adult Consumers
Sampoerna has a responsibility to comply with the existing laws regarding the marketing, sales and communication practices of tobacco and nicotine products to our adult consumers.
The Company fully supports the Government's efforts to prevent and prohibit the sale of tobacco and nicotine products to individuals under the age of 21. We believe that active participation and collaboration of all relevant stakeholders are needed to overcome these issues.
To ensure that retailers who collaborate with the Company comply with Marketing Principles and Practices, we have conducted several initiatives in 2024, including:
- Provided educational information regarding YAP Program through circular letters from Sampoerna to 1.5 million retail partners and Points of Sale.
- Placed information on Point of Sale Material (POSM) amounting to 1.5 million units across Indonesia.
- Added new rules that prevent further access to sales and marketing of tobacco products (cigarettes), electronic cigarettes, and other nicotine-containing products by individuals under the age of 21 in our partners’ contract clauses
Illicit Tobacco Prevention
Sampoerna is constantly strengthening its commitment to preventing the circulation of illicit products. We fully support the government’s efforts in combating illegal tobacco products as carried out by the Directorate General of Customs and Excise (DGCE), Ministry of Finance.
To eradicate the sale of illicit products, the Company collaborates with the DGCE through the process of identification, authentication, and investigation of illicit tobacco products, be it those that resemble Sampoerna’s products or our own products that were smuggled.
Product Innovation for Better Alternative
PMI has developed a range of smoke-free products (SFPs), which are also referred to as non-combustible products. It is important to note that SFPs contain nicotine, which is addictive and not risk-free.
One of our smoke-free products, IQOS, uses real tobacco as its primary raw material and does not involve combustion, resulting in levels of harmful and potentially harmful substances that are, on average, 90-95% lower than those found in cigarettes.
Our smoke-free products portfolio in 2024 includes heated tobacco (IQOS and BONDS by IQOS), electronic cigarettes (VEEV), and oral smoke-free products (ZYN) with exclusive distribution area.
In 2023, Sampoerna inaugurated a production facility for innovative smoke-free products in Karawang, West Java. This facility was built not only to meet domestic demand but also to expand the export market for our smoke-free products. Alongside the construction of the production facility, a world-class research and development laboratory (Advanced Lab) was also established. It is one of four PMI laboratories for smoke-free products in the world and the only one in Southeast Asia dedicated to SFP.
Socioeconomic Well-being within Our Communities
Under the “Sampoerna for Indonesia” sustainability program umbrella, Sampoerna strives to consistently develop the capabilities and competitiveness of Indonesian MSMEs through two flagship programs, namely:
- Sampoerna Entrepreneurship Training Center (SETC), and
- Sampoerna Retail Community (SRC)
MSME Empowerment Through SETC
Established since 2007, Sampoerna Entrepreneurship Training Center (SETC) located in Pasuruan, East Java, has carried out various agricultural-based entrepreneurship training, covering both technical and non-technical aspects related to agricultural cultivation and animal husbandry, as well as applied research. Over time, SETC has transformed into a training center for mentoring, marketing network development, business consultation, as well as building a network of MSME players.
In addition to providing offline training in a 27 hectare facility, SETC has now also facilitated online MSME training to reach more MSME players.
By the end of 2024, more than 97,000 participants have received training from SETC, either through the SETC program directly or through SETC's collaboration with various Sampoerna for Indonesia partners across Indonesia.
SETC also remains committed to supporting market development for MSMEs through various strategic initiatives both domestically and internationally, as well as digitally.
Throughout 2024, more than 200 SETC-partnered MSMEs have made their mark in the global market through exports to 47 countries in the ASEAN, Asia, Europe, as well as the US. Furthermore, more than 800 SETC-partnered MSMEs have adopted the digital ecosystem.
Sampoerna Retail Community (SRC)
Sampoerna shows its commitment to support MSMEs through its subsidiary, PT SRC Indonesia Sembilan, provides coaching and development for traditional retail stores.
Since its inception in 2008, SRC has become a community for retail store MSMEs across the archipelago. By the end of 2024, more than 250,000 retail stores in 38 provinces have joined SRC.
SRC ecosystem amplifies local business growth and generates new opportunities for neighborhood-based entrepreneurs. The turnover of SRC stores reached IDR 236 trillion or equivalent to 11.36% of Indonesia's total National Retail GDP.
Apart from the programs to support the development of MSMEs above, Sampoerna has other programs to support our commitment and performance in social responsibility including Sampoerna Rescue (SAR).
Sampoerna Rescue (SAR)
Sampoerna continues to demonstrate its strong commitment to supporting humanitarian missions and emergency response in Indonesia through Sampoerna Rescue (SAR).
Until 2024, SAR has carried out more than 340 humanitarian missions, reached various disasteraffected areas, provided direct assistance to more than 215,000 beneficiaries and received 12 awards on disaster relief mission and mitigation.
Working Environment
Sampoerna is committed to protecting and promoting equality, diversity, and treating every individual fairly and respecting their rights.
Adhering to the Three Hands Philosophy, we create an environment where our employees can continue to thrive. We are committed to making our Company the workplace of choice for our employees, where they are able to reach their full potential and contribute to the organization.
Workplace Health and Safety
We are committed to providing a safe and healthy work environment to protect the physical and mental health of every employee.
One of our commitments is by implementing Occupational Health and Safety Management System (OHSMS) that adheres to to the international standard ISO 45001:2018, encompasses all existing methodologies, procedures and controls, especially in production facilities, offices and distribution fleets. This not only to ensure the safety of our employees, but also the people around them.
Employee Training (Lifelong Learning)
In line with our parent company’s focus, we continue to support employee competency and improve organizational performance. We actively improve employee capabilities through training, education, and individual development programs tailored to their existing needs.
The People & Culture Department manages employee competency development by organizing various training and educational programs.
These training sessions focus on the knowledge, vocational skills, and development of each employee, with the objective to see each employee achieve a balance between technical skills and self-development.
Industrial Relations
As our commitment to creating a fair working space, we also respect workers' rights based on industrial regulations. Sampoerna recognizes that the majority of our workers are laborers, hence we guarantee employment rights through healthy and harmonious industrial relations.
HOPE (Holistic Program for Employability)
HOPE (Holistic Program for Employability) is a program that aims to encourage employees and foster their entrepreneurial growth by increasing their financial literacy, developing their skills, and empowering them, including those at the Hand-rolled Cigarettes production facilities.
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