PT HM Sampoerna was planning to open a new hand-rolled kretek cigarette factory in East Java, scheduled to begin operations next month. The company said the factory, which would be located in Jember, East Java, would be an economic driver for the regency due to its domino effect. The factory will employ 4,500 workers, mostly women. The new hand-rolled cigarette factory in Jember will be the seventh such factory after the company’s six other factories in Surabaya, Malang, Probolinggo and Lumajang, all of which are in East Java.

Hanjaya Mandala Sampoerna tbk PT is leading a consortium of local investors that is in discussions to acquire 50% stake in PT. Fajar Bumi Sakti from PT Bumi Resources Tbk for about $200 million, sources with direct knowledge the matter said. The deal may still fail if the parties involved can't agree on the valuation, the sources said. Dileep Srivastava, a Bumi Resources director, refused to comment to Reuters. "It is in our nature to look for opportunities for prospective investments in Indonesia. We are open to possibilities to expand our business in other industries such as, but not limited to, mining. In relation to the above topic, we have not made any commitment with any company or group of companies on investment in coal mining industry," A. Putranto, an executive at PT Sampoerna Strategic, said.