CORPORATE MILESTONE

The journey of the Company’s performance begins with a record from around 1965 to 1970, a story where husband and wife Chandra Saksono had to start a small business to support their family, after being released from their permanent jobs as Mandarin language school teachers which had to be closed due to the political situation at that time. This condition required Chandra Saksono’s husband and wife to start a business making hair oil and laundry soap with the concept of a home industry and entrusting their products to several wholesale stores in Surabaya. From these itinerant sales, it was known that roll your own tobacco products were very well sold in the market, so Chandra Saksono’s husband and wife started their business making roll your own tobacco while still producing hair oil and laundry soap.

 

The production process of roll your own tobacco products, which was initially managed in the backyard by Chandra Saksono’s husband and wife, turned out to be slowly but surely recognized by its customers using the Kuda Terbang and Pohon Sagu brands, so that the production of hair oil and home-made laundry soap was stopped and focused on the production of sliced tobacco alone. Roll your own tobacco products that were previously only sold around the Kenjeran wholesale area in Surabaya, gradually began to spread to Pontianak and several areas in Papua, namely Manokwari and Biak.

 

The production process automatically increased so that a large business location was needed and a warehouse was chosen around Kenjeran street in Surabaya. Since the early 1970s until the end of the 1970s, the production process was carried out in this Kenjeran Surabaya warehouse. Due to a fire incident at the Kenjeran warehouse around 1979, Chandra Saksono’s partner had to change strategies and maintain the products that were already sold and the existing market demand, so it was decided to temporarily reduce production. With the fire incident at the Kenjeran warehouse, the husband and wife of Chandra Saksono had to maintain their business and look for a large business place to meet the increasing market demand.

At that time, Chandra Saksono’s husband and wife received an offer for a warehouse and business license in Malang. Therefore, with all the efforts and challenges of Chandra Saksono’s husband and wife bought a warehouse and business license in Malang, and this warehouse has a large area and with a business license named NV. Indonesian Tobacco & Industrial Company which is abbreviated to ITIC.

Chandra Saksono’s husband and wife business became NV. Indonesian Tobacco & Industrial Company (acquisition and merger) in accordance with the warehouse designation permit in Malang, which eventually changed its name to PT Indonesian Tobacco around 1990. At that time, all production processes in the Kenjeran Surabaya warehouse were eventually moved to Malang and the Kenjeran Surabaya warehouse was sold to another party; tobacco brands such as: Pohon Sagu, Kuda Terbang, Lampion Lilin and Anggur Kupu were also launched during this period.

 

Around 1990, Chandra Saksono’s son, Djonny Saksono began to play a role in the management of the business and expanded the marketing and production areas and made many improvements in business management.

 

The production process from a household industry with a capacity of 3 (three) tons to a manufacturing business with a production tonnage of around 250 tons to 300 tons per year, slowly but surely, rose to around 500 tons to 600 tons per year. During this period, export sales to Malaysia and Singapore began with product brands such as Butterfly and Pohon Sagu.

Since around 2000, the Company underwent many changes by adopting an integrated management system with the implementation of ISO 9001. Expansion of the local market sales area and production arrangements as well as research and development for new products were carried out and the Company launched a new premium tobacco product under the Manna tobacco brand. Market opening in Sulawesi and Maluku and market penetration in Kalimantan with Manna tobacco products were promoted in the last seven years. In 2017, new export areas were opened and a new brand of Papillon tobacco was launched in Japan.

 

During 2017, the Company developed Manna tobacco products with the aim of reaching out to the market that can still be developed further in the Eastern part of Indonesia. The sales of Manna tobacco began to receive love from customers and began to gain market share in Kalimantan and Sulawesi, so that sales of Manna tobacco also began to contribute to increased revenue during 2024 for the Company. In the period 2019 to 2024, the Company implemented the Occupational Safety and Health Management System (SMK3) to support the success of the Company’s operations, especially in the K3 field.

 

In 2022, the Company added the implementation of other integrated management systems, namely ISO 14001-based Environmental Management System and ISO 45001-based Occupational Safety and Health Management System. At the beginning of 2023, the Company successfully conducted an external audit and received certificates for the implementation of ISO 9001: 2015, ISO 14001: 2015, ISO 45001: 2018 from AMTIVO Indonesia and SMK3 PP 50 from the Ministry of Manpower of the Republic of Indonesia. The implementation of this integrated management system is expected to provide added value in work effectiveness and support the Company’s business sustainability. In 2024, for the first time, the Company successfully expanded export sales to the Indian market.