Sabtu 12 Oct 2013 02:24 WIB

Philips Morris to build new factories in Indonesia

Rep: Mutia Ramadhani/Antara/ Red: Ajeng Ritzki Pitakasari
Marlboro, the global brand of Philip Morris (illustration)
Foto: AP PHOTO
Marlboro, the global brand of Philip Morris (illustration)

REPUBLIKA.CO.ID, JAKARTA--International leading tobacco companies, PT Philip Morris Indonesia and PT HM Sampoerna planned to boost their investment in Indonesia worth two trillion IDR.  The companies steps to increase their production capacity in Indonesia was greatly appreciated by National Economic Council (DEN).

 

"They see Indonesia with a huge market potential as a good opportunity," said Aviliani Secretary of DEN  on Friday.

 

Avaliani expected Indonesian government to provide immediate support to smoothen the companies path in establishing long term operation in Indonesia.

 

Government, she urged, had to come up with friendly investment policies, mainly the ease of getting business license, and prepared their best resources and infrastructures to attract, retain, and expand manufacturing investment.

Philip Morris and Sampoerna would build two new cigarette factories in Karawang, West Java worth two trillion IDR ($177 million). Director of Sampoerna, Paul Janelle believed this investment would help Indonesian government to create jobs and boost exports.

Janelle said the companies had so far invested 390 million USD in Karawang factory since 2006. Export value of tobacco by Philip Morris and Sampoerna reached 24 million USD in 2012 and was expected to double in 2013.

 

"We believe, there is a great market's potential for cigarettes. And Indonesia will become the production center of Marlboro next year to meet Asia-Pacific demands."

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