HMSP Reveals Smoke-Free Product Innovation Drives Economic Growth

JAKARTA PT HM Sampoerna Tbk (HMSP), together with its parent company, Philip Morris International (PMI), continues to strengthen its commitment to science and technology-based innovations through the development of smoke-free products in Indonesia.

As for the launch in 2019, this product has not only offered alternatives to adult consumers, but has also created significant economic impacts through cross-sectoral collaboration.

Sales Director Sampoerna Yohan Lesmana, emphasized that true innovation occurs when better and more science-based products can be accessed by the wider community.

According to him, collaboration with business actors is the main pillar in building a responsible and sustainable ecosystem.

"It's not just about creating advanced technology in a laboratory; it's about how we bridge science with everyday reality, bringing it directly into the hands of adult consumers who are entitled to better choices," he said in his statement, Thursday, July 3.

Yohan explained that this effort has yielded concrete results where until now, more than 600 MSMEs in 20 cities have joined the smoke-free product partnership program, creating more than 1,300 new jobs and reaching more than 150,000 grocery stores through the Sampoerna Retail Community (SRC) network.

According to him, partnership expansion has even targeted new sectors such as hotels and cafes, opening up opportunities for economic growth in various industrial lines.

We believe that by in-depth collaboration, we are not only creating new business opportunities, but also contributing to wider goals, namely providing a better alternative for adult consumers. This partnership is not only transactional, it is a sustainable program that focuses on value, innovation, and long-term positive impacts on the community," he said.

Meanwhile, one of the strategic partners, namely The Trans Luxury Hotel, where through the conversion of some rooms into IQOS-friendly rooms, it has a direct impact on hotel operational efficiency, such as reducing cleaning, maintenance costs, to replacing furnishing and linen.

Director of Marketing and Communication of The Trans Luxury Hotel Anggia Elgana said that in the world of hospitality, it upholds comfort and cleanliness and the presence of this smoke-free product is very helpful for his party in maintaining service standards.

"I am very optimistic and confident that the future of the hotel industry will increasingly move towards a cleaner and more responsible environment, and smoke-free products will play an important role in this transformation. Our experience at the Trans Luxury Hotel proves that adaptation to smoke-free products is no longer just an option, but a must. This is an investment that will provide multiple benefits, operational efficiency and reputation building," he said.

Anggia said that the funds previously used for this purpose can now be allocated to improve service quality, which in turn increases business competitiveness.

Meanwhile, in terms of MSMEs, smoke-free products have also proven to encourage business growth, Maja Family Chief Marketing Officer Omar Karim Prawiranegara said his business turnover has increased by 25 percent since providing smoke-free product-friendly areas.

We managed to attract a new segment of consumers who are looking for a comfortable place to relax without disturbing others with smoke or smell. They tend to come more often, longer, consuming more food and drinks. Not infrequently, they also often bring fellow users of adult nicotine to participate. This has a direct impact on increasing our sales," he said.

The presence of this innovative product also expands the creative economy ecosystem, International Graphiti Artist Darbotz expressed his appreciation for the presence of special IQOS areas in various places, for enabling the use of odorless tobacco products.

He admitted that he was skeptical of smoke-free products, but changed after understanding that IQOS did not go through the burning process and was supported by scientific studies that showed exposure to harmful substances was lower than cigarettes.

"So I understand. Apparently, this product does not go through a burning process, thereby reducing exposure to harmful substances. And most importantly, this is not just a claim, but based on scientific studies," he explained,

Darbotz also believes that art and technology are two inseparable elements in presenting innovations that have a positive impact.

According to him, technology has become an exploration medium that allows artists to realize creative ideas that can previously only be imagined and see innovation as an effort for a better purpose.

In the arts, I continue to look for new techniques, new ingredients, so that the work is more stable. In life, it's the same, I look for a clear and better alternative. Well, IQOS is exactly like that, a better alternative," he concluded.