KT&G Expands with New Factory in East Java; Indonesian Government Supports Move

KT&G

Tuesday, September 12, 2023 8:47 AM UTC

According to The Korea Economic Daily, the South Korean tobacco firm that is also leading the pharmaceutical technology in the country has won investment support from the Indonesian government. The pledged funding will go to constructing the new factory in the region. KT&G plans to use the upcoming facility as its base for product exports to Southeast Asia.

A signing ceremony for the investment agreement between KT&G and the Indonesia Investment Coordinating Board (BKPM) was held last week, but this was only announced on Monday, Sept. 11. The event was held at the Indonesian Ministry of Investment office in Jakarta and was attended by the company's chief executive officer, Baek Bok In, and Indonesia's Minister of Investment, Bahlil Lahadalia.

During the ceremony, CEO Baek said, "Through the investment in the new Indonesian factory, we will accelerate our expansion into overseas markets, swiftly seize opportunities abroad and leap into a global top-tier company through aggressive investments and innovation."

Minister Lahadalia also stated, "On behalf of the Indonesian government, I welcome KT&G's continued investment and will do my best to ensure the smooth progress of the investment."

Meanwhile, Korea IT Times reported that under the deal, KT&G will polish its investment plan for constructing a new plant even more to clarify the agreed terms. As the agreement outlines, Indonesia's Ministry of Investment will extend various support and convenience in line with the local laws and regulations.

Once completed in 2026, KT&G will begin the full operation for the manufacturing and export of its tobacco products. Aside from Southeast Asia, the company also targets other nearby regions as the delivery destination.

Photo by: KT&G Newsroom