Jakarta, 22 July 2024 – PT HM Sampoerna Tbk. (Sampoerna), in partnership with the Indonesian Chamber of Commerce and Industry (Kadin), hosted the “Pesta Rakyat UMKM untuk Indonesia”. This event is aligned with the Indonesian government's priority to accelerate inclusive and sustainable transformation through the empowerment of MSMEs. It also highlights the effective collaboration and synergy among stakeholders, adopting a multi-helix approach that includes the government, business organizations, the private sector, academia, and the broader public.
The event, held at the Assembly Hall of the Jakarta Convention Center (JCC), was officially opened by Airlangga Hartarto, the Coordinating Minister for Economic Affairs of the Republic of Indonesia, accompanied by Teten Masduki, Minister of Cooperatives and SMEs, and was also attended by more than 1,250 MSMEs mentored by Sampoerna and Kadin Indonesia. The “Pesta Rakyat UMKM untuk Indonesia” featured panel discussions, MSME workshops, and exhibitions designed to help entrepreneurs grow their businesses, build a network, and expand their market globally.
Airlangga Hartarto, the Coordinating Minister for Economic Affairs of the Republic of Indonesia, remarked, "The government recognizes the critical importance of mentoring and supporting MSMEs to help them to be ready to export. We continue to encourage medium and large enterprises to engage in partnership programs with MSMEs. The private sector has a vital role to play, not only as offtakers but also in building sustainable value chains and developing MSMEs with an export oriented market and global competitiveness."
Inclusive collaboration among various stakeholders, including Sampoerna, KADIN Indonesia, and the National Export Improvement Task Force, contributes significantly to the capacity development of national MSMEs. The initiative aligns with the government's efforts to boost exports, strengthen trade balance, and drive economic growth through the development and expansion of MSME exports. This collaboration is also expected to advance the national economy, creating a potential multiplier effect for the wider public.
This collaboration, utilizing a multi-helix model across stakeholders to support Indonesian MSMEs export capacity, has also received appreciation from the Ministry of Cooperatives and SMEs. “I would like to appreciate the partnership initiative between Sampoerna, KADIN, and JETRO. We have to continuously support MSME export, amid all the challenges. Therefore, business aggregators and partnerships become important in helping MSME penetrate the global market,” said Teten Masduki, Minister of Cooperatives and SMEs.
At the event, Kadin Indonesia, Sampoerna, and the Japan External Trade Organization (JETRO) also launched the Advanced Phase Program: "Technology Enhancement for Indonesian MSME Exports." This program focuses on harnessing Internet of Things and Artificial Intelligence to accelerate the number of Indonesian export-ready MSMEs. This initiative aligns with the Indonesian government's focus on encouraging more MSMEs to penetrate global markets. In 2023, the Ministry of Cooperatives and SMEs reported that MSMEs contributed only 15.7% to national exports, a figure lower than that of neighboring ASEAN countries such as Thailand at 28.7%, Vietnam at 20%, and Malaysia at 17.3%.
The commitment to boost national exports and market access for MSMEs is a key component of the WikiExport program, an initiative launched by Kadin Indonesia in October 2022 alongside the Inclusive Partnership Movement for Upgrading MSMEs. So far, over 200 MSMEs have received certified export education and training through this program. In 2023, WikiExport successfully prepared nine Indonesian MSMEs for export, leading to business matching events that generated transactions worth USD 1 million, or approximately IDR 16.1 billion.
Chairman of Kadin Indonesia, Arsjad Rasjid, expressed that this program aims to increase the number of MSMEs ready to export and expand potential export markets. "The role and contribution of MSMEs are crucial in achieving the national economic growth target of 8 percent. The growth of export-oriented MSMEs strengthens the fundamental aspects of the national economy. The collaboration with Sampoerna at the “Pesta Rakyat UMKM untuk Indonesia” today is a concrete example of the kind of synergy that needs to be enhanced to develop globally competitive, export-oriented MSMEs," he explained. Kadin Indonesia is also introducing the AyoBerkadin! initiative for MSMEs. Through this program, MSME entrepreneurs are invited to become Kadin members to receive education, capacity development, mentoring, business consultations, networking opportunities, and the chance to participate in MSME exhibitions at national and international levels.
At the same event, Takahashi Masakazu, President Director of the Japan External Trade Organization (JETRO), also highlighted the positive impact of the collaboration and synergy between Sampoerna, Kadin Indonesia, and JETRO. "We are proud to contribute to the export capacity development of Indonesian MSMEs. JETRO remains committed to supporting the enhancement of export capacity and quality of Indonesian MSMEs, particularly to increase their presence in the Japanese market. We also hope that more new Indonesian MSME entrepreneurs will participate in this program," he concluded.
The private sector is essential in fostering inclusive economic growth by empowering MSMEs, with Sampoerna taking an active role. Sampoerna's efforts to develop the MSME sector are rooted in its beginnings as a small business in Surabaya over a century ago. “Pesta Rakyat UMKM untuk Indonesia”, held as part of Sampoerna's 111th anniversary celebrations, underscores the company's ongoing commitment to MSME empowerment in Indonesia.
Sampoerna's President Director, Ivan Cahyadi, emphasized that collaboration and synergy are crucial for the rapid and focused development of MSMEs. “In fostering MSMEs, Sampoerna prioritizes a multi-helix collaboration model, engaging in inclusive partnerships with the government, business organizations, academia, the private sector, and, of course, the media and other stakeholders. Therefore, we greatly appreciate the collaboration established with Kadin Indonesia at Pesta Rakyat UMKM untuk Indonesia,” he said.
Sampoerna consistently works to uphold its commitment to nurturing and supporting MSME entrepreneurs, helping them grow and expand into global markets. Through its sustainability initiative, “Sampoerna for Indonesia,” the company runs two flagship programs for MSME empowerment: the Sampoerna Retail Community (SRC) for small retail shops and the Sampoerna Entrepreneurship Training Center (SETC). These programs have collectively supported over 320,000 MSME entrepreneurs across Indonesia.
Looking ahead, Ivan hopes Sampoerna will continue to play an active role in promoting national economic growth. He emphasized that the advancement of MSME entrepreneurs is vital to achieving Indonesia’s goal of strengthening its human resources. “Empowering MSMEs through mentoring is our way of developing superior human resources, enhancing the skills and competencies of MSME entrepreneurs, contributing to the broader society, and benefiting the nation.”
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About PT HM Sampoerna Tbk. (Sampoerna)
Established in 1913, Sampoerna is a leading tobacco company in Indonesia and an affiliate of Philip Morris International Inc. The company is engaged in the manufacturing and trading of cigarettes, smoke-free tobacco products, and other nicotine-containing items. Sampoerna produces popular kretek brands such as Sampoerna A, the legendary "King of Kretek" Dji Sam Soe, and Sampoerna Kretek. Additionally, Sampoerna distributes Marlboro cigarettes across Indonesia through a long-term distribution agreement with PT Philip Morris Indonesia.
Sampoerna operates seven production facilities in Surabaya, Pasuruan, Probolinggo, Malang, and Karawang, including a facility dedicated to innovative smoke-free tobacco products aimed at the Asia-Pacific export market and domestic sales. The company collaborates with 43 Sigaret Production Partners throughout Java, directly and indirectly employing over 90,000 people, mainly in hand-rolled kretek cigarette production. Sampoerna's products are distributed through 109 sales and regional distribution offices across Indonesia.
Sampoerna is publicly traded on the Indonesia Stock Exchange under the ticker symbol "HMSP."
For more information, visit: www.sampoerna.com
Media Contact:
Reza Juniarshah
Head of Corporate Communications
PT HM Sampoerna Tbk.
Email: contact@sampoerna.com
About the Indonesian Chamber of Commerce and Industry (Kadin Indonesia)
Founded in 1968 and established under Law No. 1 of 1987, Kadin Indonesia is the umbrella organization for all chambers of commerce and business associations in Indonesia, including foreign chambers operating in the country. Kadin Indonesia acts as the voice of the private sector and works closely with government officials to create a supportive business environment. Kadin Indonesia’s mission is to promote vital, inclusive, sustainable, and equitable economic growth in Indonesia. With a network of 35 provincial chambers and 544 district/city chambers, Kadin Indonesia represents the interests of business associations across all sectors of the economy. The organization partners with key government institutions to actively participate in business and economic reforms. As the primary point of contact for foreign companies, Kadin Indonesia opens doors to Indonesia's vibrant private sector, facilitating business opportunities and fostering international partnerships.
For more information:
Steven Polhaupesy
Head of Public Relations, Kadin Indonesia Secretariat
Email: steven.yohanes@kadin.id