A Comprehensive Economic Analysis of Tobacco Farming Potential in Grobogan Regency, Central Java | [Journal of Global Innovations in Agricultural Sciences • 2024]

Author(s):

1. Lilies Setiartiti: Faculty of Economics and Business,Universitas Muhammadiyah Yogyakarta,Indonesia

2. Diah Setyawati Dewanti: Faculty of Economics and Business,Universitas Muhammadiyah Yogyakarta,Indonesia

Abstract:

This study aims to investigate the planning for the Tobacco Products Industrial Area (KIHT) development in Grobogan Regency, Central Java, based on economic analysis. KIHT is an area where the activities of the tobacco products industry are concentrated, equipped with infrastructure, facilities, and supporting facilities for the tobacco products industry. The study was designed with a survey approach, in-depth interview, and focus group discussion (FGD) with 100 key informants to obtain facts from the existing phenomena and find information factually. The number of key informants is based on the number all of tobacco numbers in Grobogan regency. The study, therefore, analyzes tobacco competitiveness, labor absorption, product market, and macroeconomic analysis. To sharpen the analysis, the study was supported with a questionnaire instrument to see how far tobacco farmers were prepared in KIHT development. Empirically, the results showed that tobacco farming absorbed 150 HOK/ha per season, greater than corn farming which only absorbed 52 HOK per season per ha and rice farming which absorbed 87 HOK per season per ha. It had high competitiveness with the oligopsony market structure. In addition, the market for tobacco products was experiencing a significant upward trend, and it is in accordance with the Cobweb Theorem law that the behavior of farmers will try to increase the planting area when there is a previous price increase. From the potential of tobacco products, Grobogan Regency received an excise duty of IDR 14.87 billion or 2% of the total excise duty of Central Java Province. This revenue-sharing fund will increase the regional fiscal capacity.

Page(s): 477-486

DOI: 10.22194/JGIAS/24.1283

Published: Journal: Journal of Global Innovations in Agricultural Sciences, Volume: 12, Issue: 2, Year: 2024

Keywords:

Economic analysis , Economic analysis , Tobacco , Cobweb Theorem , Survey Approach , Tobacco Competitiveness , Excise Duty , Grobogan Regency , KIHT

References:

[1] Azizi H.,Shahbazi M.,Hajian F.,Yazdi S.,Rafiee S.,Zareie R.,Khalaj V. .2023 .Tobacco (Nicotiana tabacum) leaves extract modulates lipopolysaccharideinduced inflammatory responses in murine macrophages. Journal of Ethnopharmacology, 278 : 114473.

[2] Barnes R. L.,Reynales-Shigematsu L. M.,Thrasher J. F.,Mejia R. .2023 .Deforestation caused by tobacco production: implications for environmental sustainability. Tobacco Control, 32 : 19-25.

[3] BPS-Statistics Grobogan,Regency Grobogan .2022 .Grobogan Regency in Figures 2022. , : .

[4] Denic M.,Fomsgaard I. S.,Theilade T. .2022 .Lowering the addictive potential of tobacco through biotechnological approaches. Frontiers in Plant Science, 13 : 774959.

[5] .2020 .Warta Bea Cukai: Dukung Industri Hasil Tembakau, Pemerintah Tetapkan Aturan Aglomerasi Pabrik Hasil Tembakau. Directorate General of Customs and Excise, : .

[6] Drope J.,Liber A. C.,Cahn Z.,Stoklosa M.,Kennedy R.,Douglas C. E.,Henson R.,Drope J. .2018 .Who's still smoking? Disparities in adult cigarette smoking prevalence in the United States. CA: A Cancer Journal for Clinicians, 68 : 106-115.

[7] Fauzi S.,Pongpanich S. .2022 .The effect of price on cigarette consumption among youth in Indonesia: Implications for tobacco tax policy. World Medical & Health Policy, 14 : 665-678.

[8] Franzen A,Kollath-Cattano C. .2022 .The economic burden of smoking in the United States: estimates from a systematic review. Tobacco Control, 31 : 134-141.

[9] Geordel H. T. .2007 .Comparing public policies in multilevel governance systems: tobacco control in the European Union. , : .

[10] Henderson. ,J. W. .2022 .Health Economics and Policy (8th ed. Cengage Learning., : .

[11] Heriyani F.,Husodo A. H.,Saleh Y. D. .2013 .Risk Factors of the Incidence of Pulmonary Tuberculosis in Banjarmasin City. International Journal of Public Health Science (IJPHS) 2, : 1-6.

[12] Hidayat A.,Surjono N. D. .2016 .Impact of specific excise rate simplification on cigarette consumption and government revenue in Indonesia. World Customs Journal, 10 : 73-100.

[13] Kalkhoran S. A.,Glantz S. A. .2016 .E-cigarettes and smoking cessation in real-world and clinical settings: a systematic review and meta-analysis. The Lancet Respiratory Medicine, 4 : 116-128.

[14] Kamilina N. D. .2022 .Kontribusi DBH Cukai dalam Soal Eksternalitas Negatif Rokok. , : .

[15] Kristina S. A.,Wiedyaningsih C.,Masrida W. O.,Santoso K.A.,Ahsan A. .2019 .The Mortality Costs of Tobacco Related Cancers Among Second-hand Smokers in Indonesia 2018. Research Journal of Pharmacy and Technology, 12 : 6075-6080.

[16] Lee K.,Eckhardt J. .2017 .The globalisation strategies of five Asian tobacco companies: An analytical framework. Global Public Health, 12 : 269-280.

[17] Lomonossoff G. P.,M. A. D'Aoust G. P. .2016 .Plant-produced biopharmaceuticals: A case of technical developments driving clinical deployment. Science, 353 : 1237-1240.

[18] Meilissa Y.,Nugroho D.,Luntungan N.N.,Dartanto T. .2022 .The 2019 economic cost of smoking-attributable diseases in Indonesia. Tobacco Control, 31 : 133-139.

[19] Nurhayati-Wolff H. .2021 .Tax revenue from tobacco excise Indonesia 2013-2020. , : .

[20] Nurvrianto ,M. N and M.R.U.D. Tambunan .2020 .Government Challenges in Simplifying Tobacco Excise Rate Structure to Minimize Excise Avoidance of Cigarette Manufacturer in Indonesia. JKAP (Jurnal Kebijakan Dan Administrasi Publik), 24 : 43.

[21] Porter M. E. .1992 .. The Competitive Advantage of Nations. Administrative Science Quarterly, 37 : 507-510.

[22] .2020 .Ministry of Finance of the Republic of Indonesia 1. Number 21/PMK, : .

[23] Slaughter E.,Gersberg R.M.,Watanabe K.,Rudolph J.,Stransky C. .2022 .Environmental impact of tobacco product waste: an overview and call to action. Tobacco Control, 31 : 8-16.

[24] Stead L. F.,Perera R.,Bullen C.,Mant D.,Cahill K.,Lancaster T. .2012 .Nicotine replacement therapy for smoking cessation. Cochrane Database of Systematic Reviews, 11 : .

[25] Susanto H. .2012 .Kajian Pemetaan (Mapping) Potensi Tembakau dan Turunannya di Kabupaten Grobogan. Journal of Rural and Development, 3 : 189-198.

[26] .2000 .Strategies for reducing exposure to environmental tobacco smoke, increasing tobacco-use cessation, and reducing initiation in communities and health-care systems. A report on recommendations of the Task Force on Community Preventive Services (No. RR-12), : .

[27] Lampe Von,Kurti M. .2016 .The illegal cigarette trade in New York City. Trends in Organized Crime, 19 : 329-350.

[28] World Health Organization-Southeast Asia .2020 .Raise Tobacco Taxes and Prices for a Healthy and Prosperous Indonesia. , : .

Citations

Downloads

Views