Gudang Garam

PT Gudang Garam Tbk is an Indonesian company engaged in the manufacturing of cigarettes. The company is a leading manufacturer of kretek cigarettes (these clove-type of cigarettes are a trademark of Indonesia). It produces a wide range of kretek cigarettes including low-tar, low-nicotine variants and traditional hand-rolled kretek, which are distributed domestically and worldwide.

Gudang Garam has established primary and secondary kretek manufacturing operations at two main sites. Kediri (home to the company headquarters) and Gempol. Both sites are located on Java, Indonesia’s most populous island.

Gudang Garam operates an in-house printing facility and has three active subsidiaries: Surya Pamenang, producing paper board used for the manufacturing of Gudang Garam packaging, Surya Madistrindo, sole distributor of the company’s products, and Surya Air which provides non-scheduled air transport services. In 2012, 84 percent of Gudang Garam’s cigarettes production was machine-made, while the remaining 16 percent was hand-rolled kretek.

At end 2015, the company had a market share of about 20.6 percent of the domestic cigarette market. Due to the high number of smokers in Indonesia, Gudang Garam – as well as other companies in Indonesia’s cigarette industry – is a major source of revenue for the Indonesian government in terms of excise duties and corporate income tax. Gudang Garam is one of the companies with the largest market capitalization listed on the Indonesia Stock Exchange (IDX).