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Sampoerna Inaugurates Solar Power Generation System in Karawang and Surabaya

JAKARTA, Indonesia, July 10, 2017 /PRNewswire/ — Indonesia has a huge potential in renewable energy. Located in the equator line, the archipelago benefits from large amounts of sun-intensity. According to a 2015 report by the International Energy Agency, the nation holds solar energy potential of approximately 1,200 GW, while only 1 GW of power will provide enough energy for about 700,000 homes. This enormous potential, however, remains underdeveloped. Citing a 2015 report by PricewaterhouseCoopers (PwC), Indonesia's current installed solar energy capacity is only 22 MW, which is mostly composed of solar home systems and small-scale photovoltaic plants.

Following the steps of its parent company Phillip Morris International (PMI), who are ranked among the top fast-moving consumer goods companies in terms of its environmental footprint, PT HM Sampoerna Tbk. (Sampoerna) have made great progress in contributing towards that success, one of which is through seizing the solar power potential. "As one of the largest company in Indonesia, Sampoerna is strongly committed in building a responsible and sustainable business. This includes carbon emission reduction, alternative energy utilization and energy efficiency," said Sampoerna's President Director Mindaugas Trumpaitis.

Started in 2016, Sampoerna has started to develop green energy source in its facilities. One of the projects is Solar Power Generation System in Company's Karawang Factory, West Java and Surabaya Head Office, East Java. This green energy source equip with on-grid type system. On-ground solar power generation system in Karawang aims to directly supply electricity for machine-made cigarette production line, with capacity of 449 KWp, which can generate electricity 609 MWH annually. On the other hand, Surabaya rooftop solar panels generate electricity to provide the office and hand-rolled kretek cigarette production facilities with capacity of 63 KWp to generate electricity 93 MWH annually. Combination of both systems will reduce 603,479 kg of Sampoerna's carbon foot print per year.

This project is inaugurated in April 2017 to be set for long-term supply up to more than 20 years ahead. "The inauguration of our solar panel facility in Karawang and Surabaya is a breakthrough for renewable energy development in private sector. This initiative has been essential in encouraging uptake of new sustainable technologies and supporting efforts to reduce CO2 emissions resulting in clearer air for us and for Indonesia," said Trumpaitis.

Establishment of Solar Power Generation System is one recent example of many more to come. Tackling climate change by lowering down fossil-fuel-related emissions is also among the focus areas of PMI. In 2015, PMI has surpassed its aim for 20-percent lower fossil-fuel-related emissions from manufacturing operations by achieving 24%. As a leading multinational that manufactures and sells products in over 180 countries, PMI has a complex environmental footprint that needs to be managed. Now, it aims higher to reach a 30% reduction in PMI's carbon footprint across its whole value chain by 2020.

"As part of Sampoerna's along with our parent company's commitment, we have implemented Energy Management Program to align and focus on reducing our energy consumption as well as carbon foot print. Since a few years ago, PMI has spent significant amount of investments in energy saving program by upgrading its utility system, lighting system, heat recovery system, idle sleep mode for machineries, as well as improve employees' awareness on energy saving program. All of these are done in locations where PMI and Sampoerna operate," Trumpaitis concludes.

About PT HM Sampoerna Tbk. (Sampoerna)

Founded in 1913, Sampoerna — an affiliate of PT Philip Morris Indonesia and part of Philip Morris International Inc. — is the leading Indonesian tobacco company, focusing primarily on the production and sale of clove cigarettes. The Company 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. The Company also distributes the Marlboro brand of cigarettes throughout Indonesia, through a long-term distribution agreement with PT Philip Morris Indonesia. Sampoerna operates seven production facilities in Java and partners with 38 Third Party Operators, employing — directly and indirectly — a total of approximately 70,000 employees, mostly in the production of hand-rolled clove cigarettes. Sampoerna distributes its products via 104 sales and distribution area offices across Indonesia.

Sampoerna is the largest company by market capitalization on the Indonesian Stock Exchange, where it trades under the ticker symbol "HMSP."

For further information, please visit: www.sampoerna.com

Media Contact:

Michael Reza Say
Communications Manager
PT HM Sampoerna Tbk.
Ph. +62 21 515 1234
Fax. +62 21 515 2234
Email [email protected]

SOURCE PT HM Sampoerna Tbk