TEMPO.CO, Jakarta – One of Indonesia's top cigarette producers PT HM Sampoerna has completed the construction of a cigarette factory in Karawang, West Java. President director Paul Janelle said the factory was built to boost the company's cigarette exports.
"It was completed five months ago, it has now started operating," he said after meeting with Industry Minister Saleh Husin on Monday, December 1. Paul said the new factory produces machine-rolled cigarettes.
Paul was reluctant to disclose the investment value of the new factory. He only said that in the last ten years Sampoerna spent Rp50 trillion in capex, with a total tax paid amounting to Rp50 trillion.
Meanwhile, Sampoerna's communications and international trade chief Elvira Lianita said the company now has two machine-rolled cigarettes factories. In addition to the one in Karawang, Sampoerna has another factory in Pandaan, East Java.
Sampoerna also has three hand-rolled cigarettes factories in Surabaya, Malang and Probolinggo. Elvira said there are 85,000 laborers working for the company's hand-rolled cigarette factories, "Most of them are mothers."
According to Elvira, before the Karawang factory operates, most of Sampoerna's cigarettes are sold domestically, with only a small portion exported to 39 countries, including Malaysia and Australia.