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| Sampoerna |
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 PT Hanjaya Mandala Sampoerna Tbk. (PT HM Sampoerna) traces its origins to Liem Seeng Tee, a Chinese immigrant who founded the company in 1913. At his home in Surabaya, Indonesia, he began producing and selling hand-rolled cigarettes. In several variations, he mixed tobacco with clove shavings to make kretek cigarettes—named after the crackling sound they make as they burn. His small company was among the first to manufacture and market kretek as well as non-clove cigarettes on a commercial basis.
Kretek cigarettes quickly grew in popularity. By 1932, the company was large enough to be incorporated as Sampoerna. However, when World War II and the subsequent struggle for Indonesian independence devastated much of the nation, the company had almost ceased to exist.
After inheriting the family business from his father, Aga Sampoerna—Seeng Tee’s second son—worked hard to rebuild the family’s tobacco business, after deciding to manufacture kreteks solely in the late fifties. Aga’s son, Putera Sampoerna, while carrying on with the tradition of excellence and quality of his grandfather and father before him, would turn the company into a professionally managed and market driven group. Continuing the legacy, Putera’s son, Michael Sampoerna consolidated the company’s already strong position within the Indonesian clove cigarette market, while expanded it into the international markets. Sampoerna’s portfolio of brands included such tobacco products that had won the loyalty of a diverse group of smokers as Dji Sam Soe, A Mild and Sampoerna Hijau.
In May 2005, PT Philip Morris Indonesia, a subsidiary of Philip Morris International Inc., the international tobacco operating company of Altria Group, Inc. (NYSE:MO) completed its acquisition of approximately 98% of PT HM Sampoerna shares.
Today, under the leadership of President Director, Martin G. King, supported by a Board of Directors that combines local and international expertise, PT HM Sampoerna is geared with an excellent platform for accelerated growth. PT HM Sampoerna is currently Indonesia’s most profitable and fastest growing tobacco company.
The Indonesian tobacco industry is a significant contributor to the economy. The industry reserves direct and indirect employment of approximately 6.5 million people—from tobacco and clove growers to cigarette handrollers— in addition to those employed in the supporting industries such as packaging, trucking and distribution. PT HM Sampoerna alone employs more than 40,000 people and operates five cigarette manufacturing facilities in Indonesia. Its main production facility is located in Pandaan, while the other four are in Surabaya and Malang. Sampoerna also contracts out the production of its hand-rolled kreteks to Third Party Operators (TPO) throughout Java that employ thousands more.
In addition to such direct fiscal contributions, PT HM Sampoerna also plays a significant social role by making Corporate Social Responsibility initiatives in such areas as education, community welfare, disaster rescue support and so on.
For instance, in the area of community welfare, PT HM Sampoerna initiated in 2005 a rural clean water project for the people of Sukorejo, which brought access to clean water for around 450 families there. The company also runs the Sampoerna Entrepreneurship Training Centre (SETC), an integrated training center that provides vocational training for retiring employees as well as the local residents.
In another area, the company established the Sampoerna Rescue (SAR) team in 2004, with the primary intention of providing disaster relief assistance in East Java and across Indonesia. In 2005, the team managed to arrive on day three in Aceh to assist the tsunami relief efforts there, as one of the first humanitarian organizations to turn up in ground zero following the catastrophe.
In 2006, the SAR team facilitated PT HM Sampoerna’s contribution for the relief effort, as well as the reconstruction and rebuilding of earthquake disaster areas in Jogjakarta and Central Java. The SAR team also provided relief efforts for flood victims in Gorontalo, and the tsunami disaster in Pangandaran, West Java. |
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