JAKARTA - PT Wismilak Inti Makmur Tbk (WIIM) is allocating capital expenditure (capex) of IDR 200 billion to bump up the production capacity of processed tobacco this year. In 2024, the production volume of machine-rolled kretek cigarettes (SKM) is targeted to reach 2.7 to 2.8 billion sticks.

In the information disclosure quoted Thursday (30/5), Lucas Firman Djajanto, Director of WIIM, mentioned that capex will be used to acquire filter machine to increase filter cigarettes’ production capacity. “There will be replacement of machine for regular SKM that has been there for 35 years. It is time we replace it with the new one,” he added.

According to Djajanto, the company will maintain the SKM production to 3 billion sticks, complying with the limit set by the government for tier-2 cigarette manufacturers. Additionally, the company will also increase the production volume of hand-rolled kretek cigarettes (SKT) and filter cigarettes.

It is mentioned that Wismilak’s SKM production capacity can actually reach 4 billion sticks. For SKT products, WIIM will increase the volume by 10%-15% by recruiting workers hired to roll cigarettes. “We have gradually increased SKT production capacity,” Djajanto said. (LK/ZH)