December 15, 2020

The Role of Sampoerna in Supporting National Economic Recovery through the #SampoernaUntukUMKM (Sampoerna for MSMEs) Festival

Jakarta, December 15, 2020 - In line with the government's National Economic Recovery program, PT HM Sampoerna Tbk. (Sampoerna) through its sustainability program, Sampoerna untuk Indonesia (SUI) continues its commitment to improving Micro, Small, and Medium Enterprises (MSMEs) skills and competitiveness in an integrated and comprehensive manner through #SampoernaUntukUMKM (Sampoerna for MSME) Festival. This series of activities was carried out virtually since November 16, 2020, while the main agenda of the event, which is the announcement of the winner MSMEs, webinars, and online bazaars, will be held on 15-16 December 2020.

At the main event of #SampoernaUntukUMKM Festival, the selected MSMEs and other winners will receive prizes and support in the form of sustainable business assistance, expansion of market access, licensing, and kitchen renovation support, and other supports with a total value of up to hundreds of millions of rupiah. At the #SampoernaUntukUMKM Festival, the selected MSMEs and other winners will receive prizes and support from sustainable business assistance, expansion of market access, licensing and kitchen renovation support to other supports with a total value of up to hundreds of millions of rupiah. The assisted MSMEs who participated in the #SampoernaUntukUMKM Festival will get the opportunity to showcase their business and products at the online bazaar. This event will also be broadcasted live via YouTube channel and Zoom.

Director of Sampoerna, Elvira Lianita, said MSMEs play important role in driving economic recovery, as reflected on the data of the Ministry of Cooperatives and SME of the Republic of Indonesia, which stated that this sector alone absorbs around 97 percent of the manpower in the country and contributes 60% to the total national GDP.

"To that, as one of the partners of the Government, we are consistently carrying out our commitment to improving the skills and competitiveness of the MSME in an integrated and comprehensive manner, one of which is by creating more access to appropriate training for MSMEs so that they can always face challenges through the use of digital technology," she said.

Elvira emphasized the importance of improving business skills for MSME players. This, she continued, would enable MSMEs to develop their businesses, including through product innovation to keep up with the market needs and through more effective and efficient operational management. Elvira further said, "We believe that providing a hook, and not of the fish, will have long-term impacts and encourage the independence of MSMEs. Therefore, we believe that by providing training, MSMEs will be able to increase competitiveness, and in turn, create a long-term positive impact on the surrounding community and contribute to the economic growth.”

The series of #SampoernaUntukUMKM Festival Training and Competition activities is an affirmation of Sampoerna's contribution to supporting the government in advancing the people's economy to improve the nation's welfare. This is very important, considering that during the COVID-19 pandemic, the MSME sector was one of the most significantly affected sectors. 

"In spite of that, in the process of coaching and mentoring MSMEs during the pandemic, Sampoerna continues to carry out training for effective utilization of digital technology for MSMEs, through the Sampoerna Entrepreneurship Training Center (SETC) and Sampoerna Retail Community (SRC), continues to carry out training for effective utilization of digital technology for MSMEs throughout Indonesia," said Elvira.

Moreover, in August 2020, together with the CSR partner, Sampoerna launched the OPTIMA UKM apps which aims at accelerating the improvement of skills of the MSMEs. Through this app, MSMEs can learn entrepreneurship, from business development, productivity improvement, to tips on preparing for exporting product export preparation products to overseas markets.

"Furthermore, through SRC we continue to develop people's economy at all retail stores in Indonesia through various business innovations, including through implementation of the digital ecosystem apps "AYO SRC" that connects not only outlet-to-outlet (B2B) but also outlet-to-consumers. Based on a survey that we conducted in cooperation with by Kompas.com at the end of 2019, as many as 64% of SRC owners can operate digital-based applications to help support their business," said Elvira.

Elvira added that Sampoerna also always synergizes with the Regional Government to develop the potential of local MSMEs through integrated entrepreneurship training to help drive the local economy.

For example, said Elvira, in West Java, Sampoerna consistently supported entrepreneurial development through several programs such as the Social and Environment-Based Innovative Entrepreneurship (WIBSL), which was implemented in West Java and two other provinces in 2016. This program specifically provided support for the development of innovative entrepreneurs that have a positive impact on surrounding communities and the environment, where one-third of the total 112 beneficiaries who have successfully passed the selection came from West Java areas. This program specifically provided support for the development of innovative entrepreneurs that have a positive impact on surrounding communities and the environment, where one third of the total 112 beneficiaries who have successfully passed the selection came from West Java areas.

Meanwhile in Central Java, through the program "Madhang", Sampoerna encouraged the development of home food products MSMEs in the region to support local features-based tourism. The program, which has been carried out since 2019, has reached 60 beneficiaries who have successfully passed the selection process, where 98% of them are consistently developing their home-based food business and 81% of them even managed to grow their income by 25-100% during the pandemic.

The Coordinating Minister for Economic Affairs of the Republic of Indonesia, Airlangga Hartarto, on the sidelines of the opening of the peak event of the #SampoernaUntukUMKM Festival emphasized the importance of supporting the millions of MSMEs who’s the backbone of the national economy. The Coordinating Minister for Economic Affairs of the Republic of Indonesia, Airlangga Hartarto, on the sidelines of the opening of the peak event of the #SampoernaUntukUMKM Festival, emphasized the importance of supporting the millions of MSMEs who’s the backbone of the national economy.

The total 64.2 million MSMEs in Indonesia contributed 61.07% to the national GDP or equal to Rp 8,573 trillion, and only 16% of these MSMEs use e-commerce to market their products. Therefore, it is important to continue encouraging digitalization of MSMEs. The total 64.2 million MSMEs in Indonesia contributed 61.07% to the national GDP or equal to IDR 8,573 trillion, and only 16% of these MSMEs use e-commerce to market their products. Therefore, it is important to continue encouraging digitalization of MSMEs.

Hopefully, they can get the opportunity to upgrade their business and get more access to capital.

Today MSME is one of the driving factors for the national economy. It is necessary for the MSMEs to transform from offline-based to online-based business. Of course, it is also important that the MSMEs can utilize products and services in order to benefit from the digitalization for wider access,” Airlangga explained “Today MSME is one of the driving factors for the national economy. It is necessary for the MSMEs to transform from offline-based to online-based business. Of course, it is also important that the MSMEs can utilize products and services in order to benefit from the digitalization for a wider access,” explained Airlangga.

He added that in the efforts to develop and improve the MSME sector, collaboration between stakeholders, the central, and local governments, businesses and the community plays a crucial and strategic role in improving the competitiveness of the MSMEs. Airlangga added that in the efforts to develop and improve the MSME sector, collaboration between stakeholders, the central and local governments, businesses and the community, plays crucial and strategic role in improving the competitiveness of the MSMEs. 

I hope that the MSMEs will survive and move forward to grow and expand,” said Airlangga.

As one of the speakers in the #SampoernaUntukUMKM Festival webinar, Director General for Small, Medium and Miscellaneous Industries (IKMA) of the Ministry of Industry, Gati Wibawaningsih, said the small and medium industry (IKM) has a significant role in terms of the number of business units and the workforce. Therefore, it is necessary to make a breakthrough in responding to the challenge of how to increase the output value of the IKM to the industry, among others through utilization of technology. Present as one of the speakers in the #SampoernaUntukUMKM Festival webinar, Director General for Small, Medium and Miscellaneous Industries (IKMA) of the Ministry of Industry, Gati Wibawaningsih, said the small and medium industry (IKM) has significant role in terms of the number of business units and the workforce. Therefore, it is necessary to make a breakthrough in responding to the challenge of how to increase the output value of the IKM to the industry, among others through utilization of technology.

Related to the pandemic, these small and medium businesses must-have business strategy, optimization of products and services, and development of products and services that did not exist before. Such breakthroughs are required amid the harsh a condition that the IKM sector is currently experiencing,” said Gati. 

Deputy Director of the Institute for Development of Economics and Finance (INDEF), Eko Listiyanto, commented that the Covid-19 pandemic has a profound impact on the increase in unemployment number, yet interestingly the MSME sector has the resiliency to this problem. He believed that MSMEs can be the cure to the unemployment problem. 

I think the choice to accelerate the MSME sector, for example through utilization of digital instruments, is a very rational and appropriate decision. Our next task is to further optimize the MSMEs like what Sampoerna does,” Eko concluded. “I think the choice to accelerate MSME sector, for example through utilization of digital instrument, is a very rational and appropriate decision. Our next task is to further optimize the MSMEs like what Sampoerna does,” Eko concluded.

Going forward, Sampoerna will continue to consistently encourage improvement of the productivity and self-reliance of the MSMEs through digital literacy program and appropriate technology training, and also by reaching more MSME players to join the coaching and mentoring programs, in the hope that more MSMEs are ready to do the business online.

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About PT HM Sampoerna Tbk

Established in 1913, Sampoerna – an affiliate of Philip Morris International Inc. – is the leading Indonesian tobacco company, focusing primarily on manufacturing and trading of clove cigarettes. Sampoerna produces some of the best-known kretek (clove) cigarette brand families such as Sampoerna A, Dji Sam Soe the legendary “King of Kretek”, Sampoerna U and Sampoerna Kretek. Sampoerna also distributes the Marlboro cigarette brand throughout Indonesia, through a long-term distribution agreement with PT Philip Morris Indonesia. 
 
Sampoerna operates six production facilities located in Surabaya, Pasuruan, Probolinggo, Malang, dan Karawang. Sampoerna partners with 38 Third Party Operators in Java, employing – directly and indirectly -- a total of approximately 60,000 employees, mostly in the production of hand-rolled clove cigarettes. Sampoerna distributes its products through 114 sales and distribution area offices across Indonesia.

Sampoerna is one of the largest issuers by market capitalization on the Indonesian Stock Exchange, where it trades under the ticker symbol “HMSP.”


Media contact:
Nazrya Octora 
External Communications Manager
PT HM Sampoerna Tbk. 
Mobile 08118515044
Email contact@sampoerna.com
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