Publication:
The Economics of Tobacco Farming in Indonesia

Loading...
Thumbnail Image
Files in English
English PDF (1.03 MB)
663 downloads
Published
2017-10-06
ISSN
Date
2017-10-25
Editor(s)
Abstract
This report aims to contribute to the policy debate over the reform of the Indonesian tobacco excise tax system by reporting results of a nationally representative survey of and focus group discussion with smallholder tobacco farmers that examine their livelihoods and how tobacco tax reform may affect these households.
Link to Data Set
Citation
World Bank Group. 2017. The Economics of Tobacco Farming in Indonesia. © World Bank. http://hdl.handle.net/10986/28568 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    The Costs and Profitability of Tobacco Compared to Other Crops in Zimbabwe
    (World Bank, Washington, DC, 2002-06) Keyser, John C.
    This study compares the financial costs and returns to tobacco growing with twelve (traditional and non-traditional) alternative crops, looking at profitability, costs, labor intensity, financial support, technical infrastructure, land-suitability, marketing difficulties, world demand, and production risks. It aims to provide an improved understanding of the trade-offs farmers face in deciding what crops to grow. The analysis is based on an original set of 91 production budgets estimated in January 2001 specifically for this study. The study finds that tobacco is a highly profitable cash crop for both large and small farmers. however even if global demand for tobacco were to fall significantly in the future, the impact on employment and the broader economy would depend on the extent to which commercial farmers were able to switch to other high value export crops. Changes in Zimbabwe's land policy in 2001/2002 are likely to have a much larger impact on tobacco growing and exports and on the economy than demand-induced changes in the global market for tobacco.
  • Publication
    Burley Tobacco Clubs in Malawi : Nonmarket Institutions for Exports
    (World Bank, Washington, DC, 2008-03) Negri, Mariano; Porto, Guido G.
    This paper studies nonmarket institutions that facilitate exports. In Malawi, as in many other developing countries, farmers face numerous constraints that disconnect them from export markets. The paper explores the role of a local institution, the burley tobacco clubs, in bridging smallholders to exports. Burley clubs potentially enable farmers to increase their tobacco farming productivity by providing services related to institutional access, collective action, economies of scale, and supporting network. Using matching methods and instrumental variable techniques, the authors find that tobacco club membership causes an increase of between 40-74 percent in output per acre and an increase of between 45-89 percent in tobacco sales per acre. Instead, neither the land share allocated to tobacco nor the unit value obtained by the producers is affected by club membership.
  • Publication
    Rwanda Economic Update, April 2011
    (Washington, DC, 2011-04) World Bank
    The current edition of the Rwanda economic update is titled seeds for higher growth and specially features the agriculture sector. The importance of agriculture's contribution to growth in Rwanda remains considerable, despite the emergence of other significant growth drivers, such as services. Rwanda's agriculture sector will play an essential role in attaining the country's development vision of sustainable growth and increased poverty reduction, due to its employment weight. The agriculture feature of this update edition outlines key channels through which agriculture contributes to the economy. The second part of the update provides the regular overview of recent macroeconomic developments. While the special feature on agriculture will analyze the evolving role of the sector over the past five years, the second part on recent economic developments will focus on events during 2010.
  • Publication
    An Analytical Toolkit for Support to Contract Farming
    (Washington, DC, 2014-05) World Bank Group
    Over the past century or so, a wide assortment of pre-harvest agreements, joint ventures, deals, and pledges that can be termed contract farming have been brokered between farmers and buyers. During the 1980s and 1990s, contract farming was frequently criticized as a potentially exploitative arrangement, which favored the more powerful buyer and left the small-scale farmer and the environment vulnerable to abuse. More recently, there is renewed interest from policy makers and their development partners in contract farming as a means of leveraging the recent wave of large-scale investment in land and agriculture to include small-scale farmers and to link them to new market opportunities. The establishment of contract farming becomes a means to link small-scale farmers to markets, which may otherwise be inaccessible for reasons of distance, standards, processing, or any of the other disconnections and impediments that hold them back. However, there have been few attempts to evaluate donor-supported contract farming projects, either financially or economically, or to measure their inclusiveness and their impact in the community. This document aims to provide a task team leader with tools for a critical evaluation of projects promoting contract farming schemes before, during, and after the life span of the project. This toolkit has three objectives: provide guidance on what kinds of contract farming schemes work well, and in what circumstances (the best practice function); provide guidance on how to analyze inclusive contract farming schemes in order to identify those with a good chance of success and sustainability - the right horse to back (the diagnostic function); and provide a framework for applying socio-economic and financial analysis to operations that support such schemes (the cost-benefit function).
  • Publication
    The Economics of Clove Farming in Indonesia
    (World Bank, Washington, DC, 2017-09-23) World Bank Group
    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.

Users also downloaded

Showing related downloaded files

  • Publication
    Morocco Economic Update, Winter 2025
    (Washington, DC: World Bank, 2025-04-03) World Bank
    Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.
  • Publication
    Argentina Country Climate and Development Report
    (World Bank, Washington, DC, 2022-11) World Bank Group
    The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.
  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    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.
  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    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) World Bank
    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.