On September 11th, according to a report by the Korean newspaper "East Asia Daily", KT&G announced plans to construct a new factory in East Java province, Indonesia, scheduled to begin operations in 2026. This decision was made after reaching an agreement with the Indonesian Ministry of Investment.
The Indonesian Investment Ministry has pledged to provide various support and conveniences in accordance with local regulations. KT&G plans to proceed with the necessary procedures, such as board resolutions, once key matters such as the specific investment amount, method, and objectives have been determined.
The new factory is scheduled to start operating in 2026, and its products will be exported to overseas markets such as Southeast Asia. With this move, KT&G aims to establish Indonesia as a production base for exporting products abroad and is committed to expanding its international market.
This investment plan is part of KT&G's announced 5-year investment plan in core business areas, which is a part of the company's long-term growth strategy. The plan will focus on developing three major core business areas, namely NGP (non-combustible e-cigarettes), health functional foods, and global CC (traditional cigarettes).
In addition, KT&G plans to achieve over 10 trillion South Korean won in sales by 2027, based on investment in growth in its core business areas. It aims to increase its global business sales to over 50% by actively tapping into global markets, and to raise the proportion of non-traditional businesses such as NGP and health functional foods to over 60%.
Indonesian Investment Minister Bahlil Lahadalia has stated,"We, on behalf of the Indonesian government, warmly welcome KT&G's ongoing investment and plan to make every effort to ensure the smooth progress of the investment plan."
KT&G's President, Baek Bok-in, stated,"By establishing a new factory in Indonesia, the company aims to strengthen its expansion efforts in overseas markets such as Southeast Asia. We will continue to seize opportunities in foreign markets and strive to become a globally renowned enterprise through proactive investments and innovation."
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
