Message from CEO

Dear Valued Customer And Supplier,

2025 marks the era of liquid-based tobacco products, whether in the form of capsules, Heated-Not-Burn (HNB) products, or Vapes. Almost all manufacturers in Indonesia are releasing cigarettes with various flavors. The most popular flavors currently are Blueberry, Mango, and Guava.

Global sales for the HNB and Capsule sectors are increasing at a Compound Annual Growth Rate (CAGR) of 3% to 5%, driven by high smoking prevalence in key growth regions, namely Asia Pacific and Latin America.

We at Andalan Asia Tembakau are adapting to this market situation by partnering with a capsule manufacturer from China to become their distributor in Indonesia. We are also distributing PLA Tow products.

From the perspective of our leaf business, we remain committed to our core sourcing strategy, focusing on procurement from the USA, Zimbabwe, Brazil, and Yunnan.

On the external front, we welcome the Ministry of Finance’s excise policy in the current year. We hope this will provide a breath of fresh air for all stakeholders in the tobacco industry, including farmers.

Warm regards,

Henri Kusuma
President & CEO.

Dear Valued Customers and Supplier,

Thank you for being with us since late 60’. This whole experience together makes us more mature and settle. As our prime aim is customer great experience, we keep continue to enhance in all aspect of our company.

In this message, we are declaring, with sincerely and wholeheartedly, that we are committed to become Eco friendly tobacco company, in whatsoever matter
happen!

In regards of Eco-friendly tobacco company, we are kept continues to enhance
below aspect:

• Sustainable management: implementation of a sustainable system and a continuous improvement plan to progress towards sustainable supply.
• Environment concerns: reducing waste and eliminating single use of plastic in all aspect of our sourcing and farming.
• Social and economic concerns: active support for local development
  initiatives and participation in community life.
• Cultural heritage: Helping to protect local heritage.

Once again, thank you!
Let’s us keep up our good work and enjoy life balance!

Kindest regards,

Henri Kusuma
President & CEO

Dear valued customers and suppliers,

The year 2023 we remarked as a recovering era of economy and everyday life as the pandemic of covid 19 is cured. But this year there is a significant price increase on all types of tobacco. At the same time, the government also increased tax stamps. This situation puts make factory in not easy situation. Substitute raw materials and changing blend composition are amongst what cigarette factories can do.

This year also we are facing the El Nino effect, which make tobacco plant deficit of water. Also, inflation on gas and food, and other essential human needs as an effect of the Ukraine and Palestine situation made recovery at the beginning of the year facing another challenge.

As a company, we keep sourcing competitive tobacco prices using our wide network around the globe and hope we can grow together to welcome the AI era and digitalization which is indeed cigarettes, whether as traditional cigarettes or other smoking devices still become inseparable things in human life.

Let us keep up our good work and enjoy life balance!

Kind regards,

Henri Kusuma
President and CEO.

Dear Andalan Asia Customers,

Entering the beginning of 2022, we hope for improvement and improvement in all fields, including the economy. especially with the loosening of travel rules.

Even though the tobacco industry was not affected in comparison to other industries, for example tourism, the decline in purchasing power resulted in a decline in cigarette factory sales.

And as we all know, as of April 1, 2022, the government has increased VAT to 11%, while the excise tax has just been increased at the beginning of this year.

However, we will continue to strive to meet the needs of Indonesian tobacco, especially cigarette factories, while still prioritizing the environment, social and governance (ESG)

Finally, we hope that our cooperation will be further enhanced in the future.

Kind regards,

Henri Kusuma

Owner, President, and CEO.