Indo Emkay Abadi aims for 70% local content in e-juice products

Indonesian e-cigarette liquid producer, Indo Emkay Abadi, has set a target to reach a domestic component level (TKDN) of 70% in its e-cigarette liquid products. Chief Marketing Officer (CMO) at Indo Emkay Abadi, Eko HC, stated that initially only 30% of the TKDN was produced in their products. However, the company that produces the Emkay Brewer brand liquid has gradually increased TKDN to 50-60% this year.

Our goal for next year is to achieve a 70% local content requirement. In fact, some of our products have already reached 70% this year," he explained on Thursday, August 12, 2022.

He continued by saying that the efforts to increase TKDN were carried out by searching for local component manufacturers and inviting them to collaborate.

This year, manufacturers have started incorporating locally sourced ingredients into their nicotine products.

He also explained that his political party plans to increase production by 20% next year.

He explained that despite great market potential, the quantity is moderate. This year, Emkay's maximum production capacity is 400,000 bottles, placing them among the top three tobacco producers in Indonesia.

He stated that this number was intentionally set for multiple reasons, such as the fact that the economy is still in a period of recovery and nearing an election year.

At present, the policies regarding alternatives to traditional cigarettes or e-cigarettes remain unclear. Due to government changes, we are still cautious about potential policy changes in the e-cigarette industry and other related areas," said Eko.

In addition to complying with TKDN regulations and increasing production, Emkay also plans to enhance its market penetration by expanding the number of Emkay Stores and entering various sectors such as office and commercial areas.

This year, Emkay Store has reached 100 stores and is expected to expand to 800-1000 stores. The target areas for expansion include Kalimantan, Sumatra, Bali, and Nusa Tenggara.

This year, our stores are spread across Java and Sumatra. We deliberately use this concept because we aim to increase small-scale retailers' business," he explained.

On Thursday afternoon, Emkay Brewer visited his factory in the Taman Tekno area of South Danglang, showcasing the factory's condition and the domestically produced components used in production.

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