PMI Invests $330 Million in Indonesia to Build Southeast Asia’s First New Tobacco Product Factory
Philip Morris International (PMI) and its Indonesian subsidiary PT HM Sampoerna Tbk have announced a US$330 million investment (Rp 5.35 trillion) to build a new tobacco product manufacturing facility in Karawang, West Java. The facility represents PMI’s first new tobacco product manufacturing site in Southeast Asia and its seventh globally.
The factory will produce next-generation nicotine products, including IQOS heated tobacco products, VEEV vapes, and other smoke-free products. PMI has positioned Indonesia as a strategic hub for innovation, production, and exports of new tobacco products across the Asia-Pacific region.
Key Highlights
- PMI invested US$330 million to build a new tobacco product factory in Karawang, West Java.
- The facility is PMI’s first new tobacco product manufacturing plant in Southeast Asia and its seventh worldwide.
- The factory includes PMI’s only advanced standardized laboratory in Asia.
- Around 200 Indonesian experts will support research, testing, and product development.
- The facility produces IQOS heated tobacco products, VEEV vapes, and ZYN nicotine pouches.
- PMI has launched localized BLENDS products, now available in 20 major Indonesian cities.
PMI Establishes New Tobacco Product Manufacturing Hub in Indonesia
According to reports from Indonesian media outlet Suara.com, PMI announced the investment during the Technovation 2025 event in Jakarta.
Christos Harpantidis, PMI’s Senior Vice President of External Affairs, stated that the company is expanding its investment in Indonesia through PT HM Sampoerna Tbk, focusing on the development and production of smoke-free nicotine products.
The Karawang facility, construction of which began in 2023, is designed to strengthen PMI’s manufacturing capabilities for new tobacco products while supporting regional supply chains.
Karawang Factory Becomes PMI’s First Southeast Asian Production Facility
The new Karawang plant is PMI’s first manufacturing facility dedicated to new tobacco products in Southeast Asia and its seventh such facility worldwide.
The factory is equipped with a testing and analysis laboratory that meets PMI’s global standards. According to PMI, the laboratory is the company’s only advanced facility of its kind in Asia and is supported by approximately 200 Indonesian specialists responsible for product testing and quality analysis.
These experts will conduct research and evaluation of smoke-free products, with output intended not only for Indonesian consumers but also for PMI operations in other international markets.
PMI Expands IQOS, VEEV, and ZYN Product Portfolio in Indonesia
The Karawang facility supports PMI’s broader strategy of expanding smoke-free products in Indonesia.
According to Ivan Cahyadi, President Director of PT HM Sampoerna Tbk, the company’s portfolio includes:
- IQOS heated tobacco products, including IQOS with TEREA tobacco sticks;
- IQOS BONDS, a heated tobacco device designed for adult consumers;
- VEEV vapes;
- ZYN nicotine pouches.
PMI has increasingly focused on alternative nicotine products as part of its global transition toward smoke-free products.
Localized BLENDS Series Expands Across Indonesian Cities
As part of its localization strategy, Sampoerna launched the BLENDS series. Including BLENDS by A cartridges designed specifically for Indonesian adult consumers.
Ivan Cahyadi stated that IQOS BONDS with BLENDS by A cartridges was introduced in the fourth quarter of 2024, offering a more accessible heated tobacco option.
The BLENDS series includes a clove-flavored variant using Indonesian-grown cloves and has expanded distribution to 20 major cities across Indonesia.
The localization strategy reflects PMI’s efforts to combine global product technology with regional consumer preferences.
PMI Highlights Indonesia as Asia-Pacific Innovation and Export Center
PMI emphasized that Indonesia will play an important role in its Asia-Pacific strategy by serving as a center for innovation, manufacturing, and exports of new tobacco products.
The company’s investment in Karawang demonstrates the growing importance of Southeast Asia in the global smoke-free product market.
For the tobacco and nicotine industries, the development of advanced manufacturing facilities in emerging markets highlights the increasing shift from traditional cigarettes toward heated tobacco products, vapes, and nicotine alternatives.
Indonesia Investment Reflects PMI’s Global Smoke-Free Strategy
The US$330 million Karawang investment is part of PMI’s broader transformation strategy focused on reduced-risk nicotine products.
By combining manufacturing capacity, laboratory research, and localized product development, PMI aims to strengthen its position in the global market for heated tobacco products, vaping devices, and nicotine pouches.
The expansion also signals increasing competition among major nicotine companies to establish regional production centers and develop products tailored to local markets.
