Inaugurating Cigarette Factory In Blitar-Tegal Worth IDR 630 Billion, Minister Rosan: The Government's Top Priority Creates Jobs

JAKARTA - The Ministry of Investment and Downstreaming/Investment Coordinating Agency (BKPM) inaugurated the hand-kretek cigarettes (SKT) production facility owned by PT HM Sampoerna Tbk located in Blitar Regency, East Java and Tegal Regency, Central Java, with a total investment of 42 million US dollars or Rp630 billion.

The cigarette production facility, which was inaugurated by the Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani on December 13, 2024, could absorb up to 3,500 workers.

"The creation of jobs is the government's top priority. We at the Ministry of Investment and Downstreaming are tasked with inviting investors both from within and outside the country. The goal is for industrialization. But the end of it is quality job creation," said Minister Rosan in a statement reported by ANTARA, Saturday, December 14.

Rosan said the existence of the new factory provides a large multiplier effect for clove farmers, tobacco, and vendors who have been invited to work together.

He is optimistic that the presence of the SKT production facility will be able to boost Indonesia's economy in a sustainable manner.

Meanwhile, President Director of PT HM Sampoerna Tbk Ivan Cahyadi revealed that the investment made by his party was not only focused on creating economic value, but also contributed to women's empowerment.

"We are proud that Sampoerna can become a work forum for tens of thousands of SKT distillers, which are dominated by great women with the majority taking on double roles as the backbone of the family," said Ivan.

Meanwhile, Philip Morris International (PMI) as the parent company of PT HM Sampoerna Tbk has been investing since 2005, with a realized value during the 2005 '2023 period of 6.4 billion US dollars or Rp103 trillion.

Until now, the company has employed more than 90,000 employees spread across East Java, Central Java, Yogyakarta and West Java.

The Ministry of Investment and Downstreaming / BKPM recorded the realization of investment in East Java province in the third quarter or January-September 2024 amounting to IDR 111.4 trillion and occupying the top three investment realizations in Indonesia.

Meanwhile, Central Java in the same period was IDR 26.1 trillion, and occupied the top nine investment realizations in Indonesia.