KT&G Signs Investment Support Agreement for New Factory Construction in Indonesia

First Operation of New Indonesian Plant Scheduled for 2026
Overseas Export Base to Southeast Asia and Beyond

KT&G announced on the 11th that it held a signing ceremony to receive an investment support letter from the Indonesian Investment Coordinating Board and East Java Province for the construction of a new export base factory.

Bahiril Lahadalia, Indonesian Minister of Investment (left), and Baek Bok-in, President of KT&G, are taking a commemorative photo after the investment support agreement ceremony.
[Photo by KT&G]

With the Indonesian Investment Coordinating Board expressing strong willingness to support the investment, KT&G plans to concretize its investment plan for the construction of the new factory in Indonesia. The Indonesian Investment Coordinating Board intends to provide various conveniences and support in accordance with local regulations. KT&G will proceed with necessary procedures such as board resolutions once key details including the specific investment amount, method, and targets are finalized.

The new factory to be established in Indonesia aims to begin operations in 2026, and the products manufactured will be exported to Southeast Asia and other overseas markets. Through this, KT&G plans to make Indonesia a production hub for export products and focus on expanding its overseas markets.

This investment plan is part of the core business investment strategy for the next five years announced at the ‘KT&G Future Vision Declaration Ceremony’ held last January. The company revealed a mid-to-long-term growth strategy focusing on nurturing three core businesses: NGP (Next Generation Products), health functional foods, and global CC (cigarette products).

Additionally, based on growth investments in these core business areas, KT&G has announced a strategy to achieve sales of over 10 trillion KRW by 2027, increase the global business sales ratio to over 50%, and raise the sales ratio of non-cigarette businesses such as NGP and health functional foods to over 60% through aggressive global market expansion.

Baek Bok-in, CEO of KT&G, stated, “Through the investment in the new factory in Indonesia, the company will accelerate the expansion of overseas markets including Southeast Asia,” adding, “We will continue to quickly seize opportunities in overseas markets and leap forward as a global top-tier company through aggressive investment and innovation.”

This content was produced with the assistance of AI translation services.