Sampoerna Maintains 30.7% Market Share Amid Tobacco Industry Pressure
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JAKARTA – Jakartaweekly.com, PT HM Sampoerna Tbk maintained its position as one of Indonesia’s leading tobacco companies in 2025, recording sales volume of 79.4 billion sticks and a market share of 30.7% amid continued industry challenges.
During its Annual General Meeting of Shareholders (AGMS) held in Jakarta on Monday (May 18, 2026), Sampoerna reported an 11.2% increase in gross profit to Rp20.6 trillion, supported by strategic pricing initiatives and portfolio optimization. Net profit remained relatively stable year-on-year at Rp6.6 trillion.
President Director Ivan Cahyadi said the company remains focused on innovation and strengthening its adult-oriented product portfolio to sustain leadership across all segments amid evolving market dynamics.
“Our strategy focuses on innovation and strengthening a product portfolio oriented toward adult consumers to sustain leadership across all segments amid evolving industry dynamics,” Ivan said during the AGMS.
Despite Indonesia’s resilient economic performance in 2025, the tobacco industry continued to face mounting pressure from weakening consumer purchasing power, downtrading to lower-priced cigarette products, and the growing circulation of illicit cigarettes.
National tobacco industry sales declined by approximately 3% compared to the previous year, with the sharpest pressure seen in the Volume Tier 1 segment — a category considered a major contributor to employment and excise revenue.
The segment’s market share has dropped significantly over the past six years, declining from around 80% in 2019 to nearly 50% in the first quarter of 2026. Sampoerna’s own sales volume fell 8.7% in the first quarter of 2026, mainly driven by declines in the labor-intensive Hand-Rolled Kretek Cigarettes (SKT) category.
Ivan welcomed the Indonesian government’s decision not to raise tobacco excise tariffs in 2026, describing it as a strategic move to support industry stability while preserving employment and state revenue contributions.
“We appreciate the Government’s decision not to increase excise tariffs in 2026 as a strategic step to maintain stability within the tobacco industry,” he said.
During the AGMS, shareholders also approved changes to the company’s Board of Directors.
Elvira Lianita resigned from her role following her appointment as Vice President Corporate Affairs East & Southeast Asia, Pacific and PMI Global Travel Retail at Philip Morris Asia Limited.
The AGMS approved the appointments of Joy Kartika Widjaja and Virawaty as new members of the Board of Directors, as well as Umer Jawaid, who replaces Johan Bink effective upon the closing of the 2026 AGMS.
Ivan said the leadership changes are part of the company’s ongoing efforts to ensure strong and adaptive leadership aligned with current business dynamics.