Indonesia's HMSP opens new factory for IQOS-HEETS production

Jan.17.2023

Indonesia's HMSP invested $166.1 million in a new IQOS-Heets tobacco factory with a yearly production capacity of 15.45 billion.

Recently, Indonesia's cigarette company, Sampoerna, has opened a new factory to produce innovative tobacco products under the IQOS-HEETS brand. What was the amount of HMSP's investment?

According to an official statement from the Ministry of Industry (Kemenperin), HMSP has pledged to invest $166.1 million in the innovative IQOS-Heets tobacco product, with an annual production capacity of 15.45 billion units.

Last week, the Minister of Economic Affairs, Airlangga Hartarto, unveiled Sampoerna's innovative tobacco factory in Karawang, expressing hopes that the investment will have a positive impact on the country.

Airlangga stated that there is a particular focus on encouraging innovation and creating economic value in various sectors, including MSMEs, traditional retail, partnerships with farmers, and R&D development.

On the other hand, this innovative tobacco factory's investment involves approximately 500 skilled workers and is supported by a research and development facility with an investment of up to $600,000.

It is reported that the tobacco products industry (IHT) is expected to contribute $934.05 million in foreign exchange revenue through product exports in 2021. A significant portion of this, up to 8.41%, is expected to come from other tobacco processing products (HPTL) and electronic cigarettes (REL).

In 2021, consumer tax revenue in Indonesia increased by 10.24% compared to 170.24 trillion rupiah in 2020, reaching 188.81 trillion rupiah.

The government has established the National Standard of Indonesia (SNI) for heating tobacco products in 2020 and for e-cigarette liquids in 2021.

#Indonesia #Product

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