Publication: The Economics of Kretek Rolling in Indonesia
Loading...
Files in English
418 downloads
Published
2017-09-22
ISSN
Date
2017-10-25
Author(s)
Editor(s)
Abstract
This report identifies the socioeconomic and labor market characteristics of kretek workers and their households from two large kretek producing districts. The analysis in this report is based on data collected from a sample survey of 720 kretek workers' households from two large kretek producing districts, Kudus and Malang. The details of the survey methodology are provided in appendix A. The purposive selection of sample districts is driven by a high degree of regional concentration of kretek factories. Based on the annual Survey of Industry (SI), 40 percent of Indonesian kretek workers are in three districts only, Kudus (21.4 percent), Kediri (10.2 percent), and Malang (8.6 percent) (World Bank, 2017a). This report consists of six sections, including this introduction. The next section, section two, describes the socioeconomic profile of kretek workers and their households. In section three, the labor market characteristics of kretek workers are discussed. The livelihood status of kretek workers are covered in section four. Section five presents the simulated results of the impacts of cigarette excise tax policy reform on the livelihood of kretek workers. Finally, section six concludes with the summary of findings and policy recommendations.
Link to Data Set
Citation
“World Bank Group. 2017. The Economics of Kretek Rolling in Indonesia. © World Bank. http://hdl.handle.net/10986/28571 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication The Economics of Clove Farming in Indonesia(World Bank, Washington, DC, 2017-09-23)This report aims to inform the current debate over the taxation of kreteks in Indonesia by examining clove-farming livelihoods. It presents results from a comprehensive, household-level, economically-focused survey of 600 clove farmers across the two largest clove-growing regions, Sulawesi and Central Java. The survey examines the role that clove farming plays in these households’ economic lives, among other related topics.Publication Economics of Tobacco Toolkit, Tool 4 : Design and Administer Tobacco Taxes(World Bank, Washington, DC, 2013)The purpose of this tool is to help the reader understand the structure, design, and administration of tobacco taxes. There is no doubt about the adverse health impacts of tobacco use. In both developed and developing countries, the Ministries of health, tobacco interest groups, academia, and advocates against tobacco strongly believe that tobacco consumption should be reduced, and that tobacco taxes are the single most cost-effective policy tool to achieve this goal. This tool discusses some of the issues surrounding tobacco taxes from the perspectives of consumers, public health advocates, politicians, and government administrators. Guidance is provided in how to satisfy the goals of these players without compromising their interests. This tool is intended primarily for public health advocates, policy makers, tax administration staff, and government officials. Public health advocates will gain information on the various types of tobacco taxes and which type can best reduce cigarette consumption. The tool also discusses whether and how increased tobacco taxes create a financial burden on consumers, especially the poor. Since tobacco taxes are often justified from the public health perspective, this tool includes another point of view-that of the policy maker and the tax administrator. Designing and administering tobacco taxes is a process unique to every government. There are too many variables-from tobacco and tobacco product usage to the objective and purpose of taxation to the viable and most effective method of imposing and administering a tax-to allow for a general rule of thumb regarding tobacco excise taxes. Therefore, this tool cannot present universally applicable methods to apply, mathematical models or formulas to fulfill, or step-by-step instructions to follow. An excise tax is a tax on selected goods produced for sale within a country, or imported and sold in that country. The tax is usually collected from the producer/manufacturer/wholesaler or at the point of final sale to the consumer. An excise tax can be imposed on products and services if they have one or more of the characteristics. There are two general types of sales taxes: single-stage and multistage. Single stage sales taxes apply only at one stage of the production/distribution chain. Multi-stage sales taxes apply at several stages of the production/distribution chain for a product or service. The value-added tax (VAT) is a general indirect tax on consumption.Publication The Economics of Tobacco Taxation and Employment in Indonesia(World Bank, Washington, DC, 2018-05)Indonesia has one of the highest rates of cigarette consumption in the world. Tobacco use heavily burdens population health, undermines the quest for universal health coverage, and inflicts heavy direct and indirect economic costs. Higher tobacco taxes to increase cigarette prices contribute to reducing tobacco consumption and hence tobacco-related disease and death, while increasing public resources for development. The Indonesian government has recently raised tobacco tax rates. This strategy has brought initial gains and should be aggressively ramped up. By raising tobacco taxes toward WHO-recommended levels (at least 70 percent of retail price) and streamlining its tobacco excise tax structure, Indonesia can rapidly cut smoking rates, save many lives, and boost government revenue. Such policies would contribute to realizing Indonesia's demographic dividend by keeping people healthy.Publication Economics of Tobacco Toolkit, Tool 6 : Equity Issues, Tobacco, and the Poor(World Bank, Washington, DC, 2013)Currently there are approximately 4 million tobacco related deaths annually. If present trends continue, by the year 2030 the number of deaths will soar to about 10 million annual deaths, with 7 million in low-income countries. However, government action to establish various tobacco control initiatives can prevent this from happening and save a significant number of lives. Tobacco control measures include: i) raising tobacco prices by imposing higher excise taxes; ii) advertising and marketing bans and restrictions; and iii) clean indoor air provisions. A popular and valid concern holds that raising tobacco excise taxes for the purposes of tobacco control imposes an untenable and unfair burden on the poor. In short, it is argued that higher tobacco excise taxes increase inequality in the post-tax distribution of income and reduces the real incomes of a particularly vulnerable group, the poor. This tool discusses a number of approaches in which to examine the validity of this argument. Techniques to analyze the impact of tobacco consumption and tobacco taxes on the poor are explained. And analytical methods using country-specific data are examined so that policy analysts can effectively address concerns about the poor, tobacco consumption, and tobacco control policies.Publication Economics of Tobacco Toolkit, Tool 7 : Understand, Measure, and Combat Tobacco Smuggling(World Bank, Washington, DC, 2013)The intended purpose of this tool is to let readers gain the necessary knowledge about tobacco smuggling. With this knowledge, policy responses can be developed and further monitored in order to establish their effectiveness, appropriateness, and impact on other policy goals. For example, if enhanced tax revenue is one goal of a tobacco taxation policy, smuggling can be an important consideration, since smuggled tobacco avoids taxation. Likewise, tobacco smuggling can have an impact on health policies, as it can be difficult to regulate health warnings and conditions of sale on smuggled tobacco. More specifically, by using the methods presented in this tool, a more accurate and objective understanding of tobacco smuggling can be gained. Tobacco manufacturers, distributors and sellers, and others with a narrow self-interest in the design of tobacco control policy often misrepresent the degree of tobacco smuggling. Well documented, methodologically sound, quantitative estimates of tobacco smuggling are a useful tool for educating policymakers about the costs and benefits of various policies. Moreover, unbiased estimates of smuggling, and the change in smuggling over time, are essential tools to evaluate the success of many tobacco control policies.
Users also downloaded
Showing related downloaded files
Publication Doing Business 2014 : Understanding Regulations for Small and Medium-Size Enterprises(Washington, DC: World Bank Group, 2013-10-28)Eleventh in a series of annual reports comparing business regulation in 185 economies, Doing Business 2014 measures regulations affecting 11 areas of everyday business activity: Starting a business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting investors, Paying taxes, Trading across borders, Enforcing contracts, Closing a business, Employing workers. The report updates all indicators as of June 1, 2013, ranks economies on their overall “ease of doing business”, and analyzes reforms to business regulation – identifying which economies are strengthening their business environment the most. The Doing Business reports illustrate how reforms in business regulations are being used to analyze economic outcomes for domestic entrepreneurs and for the wider economy. Doing Business is a flagship product by the World Bank and IFC that garners worldwide attention on regulatory barriers to entrepreneurship. More than 60 economies use the Doing Business indicators to shape reform agendas and monitor improvements on the ground. In addition, the Doing Business data has generated over 870 articles in peer-reviewed academic journals since its inception.Publication Compendium of International and National Legal Frameworks on Sexual Harassment in the Workplace(World Bank, Washington, DC, 2019-12)Sexual Harassment in the Workplace (SHWP) is a universal and widespread phenomenon that affects millions of women of all social strata worldwide. It is an endemic issue that has gained increased visibility and attention since the beginning of the “#MeToo” movement. In this Compendium on International and National Legal Frameworks on Sexual Harassment in the Workplace (the “Compendium”), SHWP is understood as a gender-specific form of violence, commonly directed against women and occurring in employment or the workplace. It includes requests for sexual favors, unwelcome sexual advances or other sexual conduct, whether physical or verbal, which involves a “quid pro quo” aspect (e.g. request for sexual favors used to make employment decisions) and/or creates an intimidating, hostile, toxic, humiliating or offensive working environment. As one of the pervasive expressions of gender-based violence, it reflects discriminatory social norms, stereotypes, impunity and gender inequality. SHWP is viewed as a development challenge and has high economic and social costs. Despite its serious implications for women, employers and society at large, the behavior is widely accepted and minimized. The Compendium provides a survey of the key international and regional instruments as well as national legislation as they relate to SHWP.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.