Over 6.7 million tons of tobacco are produced annually around the globe. The nation of indonesia is one of the largest producer of tobacco in the world, producing nearly 200,000 metric tons of high-quality tobacco each year. Tobacco leaves serve as the main ingredient in cigarettes around the world, with various grades, flavors and blends cured and processed to provide the signature profile and taste associated with each unique brand. Indonesia alone produces nearly 350 billion cigarettes annually in support of the over 64 million adult smokers within the nation.
The island of Batam, Indonesia is located strategically near to neighboring Singapore and Malaysia and has been designated as a Free Trade Zone by the Indonesian national government. The location and tax-friendly status of Batam have positioned the island as an ideal place for the establishment of cigarette factories. Most Batam cigarette factories import their tobacco from abroad in order to support their large-scale operations.
We opened PT SATA Tembakau Indonesia on the island of Batam in 2016 in order to become a strategic support to the many regional cigarette factories, trading, importing, and supplying high quality Indonesia, China, and other origin-sourced tobaccos for their wide range of products. Our convenient location in Batam allows us to meet with factory owners face-to-face, build strong partnerships and serve as a key supplier helping to aid in the greater success of their operations.
In 2019, we expanded our company to Surabaya with the intention of serving more cigarette factories in Central and Eastern Java. With our sales office and warehouse established in Surabaya and Bojonegoro, we intend to serve both large and small-scale cigarette factories located throughout the island.