Ministry Of Industry Supports Investment Climate For Processed Tobacco Products

Director General of Agro Industry at the Ministry of Industry Putu Juli Ardika. (Photo: Doc. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) supports the investment climate for innovative processed tobacco products as part of the Tobacco Products Industry (IHT) which has an important role in improving Indonesia's economy.

"At the beginning of 2023, PT HM Sampoerna Tbk has started exporting IQOS-Heets Innovative Tobacco Products to meet export needs to the Asia Pacific region, with the first export destinations to the Philippines and Malaysia," said Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika in a statement, as quoted from Antara, Monday, January 16.

This is considered positive news for the development of Indonesia's national industry and can serve as a model for other industries to increase export contribution.

It is known, the IHT company PT HM Sampoerna Tbk has started operating an innovative smoke-free tobacco product factory in Karawang, West Java.

The factory produces IQOS-HEETS to meet the demand for the export market in the Asia Pacific Region as well as the domestic market with a priority to encourage investment and increase exports of finished goods.

Putu, who represented the Minister of Industry Agus Gumiwang Kartasasmita at the inauguration of the factory on January 12, 2023, appreciated PT HM Sampoerna Tbk for its commitment to realizing an investment of US$166.1 million for innovative tobacco products with a production capacity of 15.45 billion sticks per year, involving around 500 workers. skilled and supported research and development facilities with an investment of 600,000 US dollars.

In the midst of intense competition between industries and regulations that bind IHT, the development of export-oriented products can certainly increase the country's foreign exchange and become something of pride for national tobacco product industry players.

Putu added that in 2021 IHT contributed US$934.05 million in foreign exchange earnings through exports, with 8.41 percent of which coming from Other Tobacco Processing Products (HPTL) and Electric Cigarettes (REL).

Meanwhile, excise revenue in 2021 rose by 10.24 percent to IDR 188.81 trillion compared to 2020 excise revenue of IDR 170.24 trillion.

The Ministry of Industry's form of support for investing in innovative processed tobacco products while maintaining product quality in order to protect consumers is by compiling the Indonesian National Standard (SNI) for Heated Tobacco Products in 2020.

Furthermore, in 2021 the Ministry of Industry will prepare the SNI for Electric Cigarette Liquid for Electric Cigarettes.