Sampoerna

PT Hanjaya Mandala Sampoerna Tbk, commonly known as Sampoerna, is an Indonesian tobacco company owned by Philip Morris International. Sampoerna is the largest Indonesian tobacco company, ahead of Gudang Garam, Djarum, and Bentoel Group. It produces kretek-type clove cigarettes. A typical brand is Sampoerna 'A' Mild, a filter cigarette in white paper.[1]

PT Hanjaya Mandala Sampoerna Tbk
TypePublic
IDX: HMSP
IndustryTobacco
Founded27 March 1913 (1913-03-27)
FounderLiem Seeng Tee
HeadquartersHouse of Sampoerna, Surabaya, Indonesia
Key people
ProductsCigarettes
Brands
Revenue Rp 106.1 trillion (2019)
Rp 17.077 trillion (2019)
Rp 13.7 trillion (2019)
Total assets Rp 50.9 trillion (2019)
Total equity Rp 35.68 trillion (2019)
OwnerPhilip Morris International
Number of employees
29,225 (2016)
ParentPhilip Morris Indonesia
Subsidiaries
Websitesampoerna.com

History

In the 1930s, Liem Seeng Tee (Lin Shengdi) adopted the Indonesian name Sampoerna (in Dutch spelling, cf. sempurna) meaning "perfection" as his family name, thus becoming the company's namesake. Sampoerna began producing Dji Sam Soe in 1913 in Surabaya, East Java. Following Seeng Tee's death in 1956, his two daughters took over the running of the company, while his two sons ran separate tobacco-related businesses. The daughters shifted the company's focus toward white cigarettes, which nearly caused bankruptcy for Sampoerna. Youngest son Liem Swie Ling, who ran a kretek factory in Bali, returned to Surabaya in 1959 to rescue the company. He shifted production back to hand-rolled Dji Sam Soe brand cigarettes. In 1968, the company launched Sampoerna A Hijau. By the mid-1970s, the company was producing over 1 million cigarettes daily and had 1,200 staff. Swie Ling in the 1970s began to hand over the running of the company to his second-eldest son, Liem Tien Pao, better known as Putera Sampoerna, who went on to modernize the company and expand its operations.[2] In 19 October 1990, Sampoerna A Mild was launched.[3]

In May 2005, Philip Morris International, at that time a subsidiary of Altria, completed the acquisition of 97.95% of the company.[4] HM Sampoerna's current president is Paul Norman Janelle.[5]

At the end of May 2014, Sampoerna closed its Lumajang and Jember factories and laid off 4,900 employees due to declining sales of hand-rolled kretek cigarette as consumers moved to buy machine-made kretek cigarettes.[6]

In late April 2020, Sampoerna temporarily closed its factories in Rungkut, East Java after two of its labourers died of the COVID-19 pandemic.[7] The factory's closure is unlikely to affect the company's total production as Sampoerna has cigarette factories in several other locations.[8]

In 2010, the company was criticized for its approach to "corporate social responsibility" efforts when Mount Merapi in Central Java began erupting. The disaster relief teams which "aim to augment efforts by a stretched Indonesian government to house, clothe and feed evacuees from the volcano," were criticized for "the flashy four-wheel drive vehicles," and "the cluster of eager staffers wearing natty red and black uniforms covered with company logos."[9]

References
  1. Carollina, Donna (29 December 2017). "Rejection of the Cigarette Billboard Sampoerna A Mild "Mula Mula Malu-Malu, Lama Lama Mau"". International Journal of Creative and Arts Studies. 3 (2): 13. doi:10.24821/ijcas.v3i2.1841. ISSN 2406-9760.
  2. Mark Hanusz (2000). Kretek: The Culture and Heritage of Indonesia's Clove Cigarettes. Equinox Pub. pp. 120–121. ISBN 978-979-95898-0-4.
  3. "Profil Poetra Sampoerna – Peringkat 9 Orang Terkaya Indonesia". Byrest.com (in Indonesian). Byrest.com. Retrieved 12 April 2018.
  4. "Indonesia-Investments.com:HM Sampoerna company profile" (Press release). March 25, 2014.
  5. Post, The Jakarta (19 July 2012). "HM Sampoerna appoints new boss". The Jakarta Post.
  6. Fajar, Deni Ahmad, ed. (May 16, 2014). "Tutup Dua Pabrik, PT HM Sampoerna PHK 4.900 Karyawan" (in Indonesian).
  7. Soeriaatmadja, Wahyudi, ed. (May 1, 2020). "Indonesian cigarette factory temporarily shut after 2 workers die of coronavirus".
  8. "Philip Morris International:PT HM Sampoerna Tbk Official Statement" (Press release). May 1, 2020.
  9. Carless, Will (5 November 2010). "Cigarette Companies Sponsor Volcano Rescue Efforts". NPR.org.
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