The Impact of Excise Policy and Government Regulations about The Hazards of Smoking For Health on Tobacco Commodity

Tobacco farmers, over the past few years are faced with a variety of changes in government policies like an excise duty policy that increasing every year or policy about the dangers of addictive substances of tobacco for health. The purpose of this study is a) to compare farming revenue and efficiency in the level of the tobacco farmers, b) to evaluate the response of farmers to the implementation of government regulations about the dangers of addictive substances for health and c) to analyze the model of tobacco development of the domestic and international markets. The results showed the revenue and efficiency tobacco farming of NO is higher than VO. NO tobacco is more profitable than VO. The impact of government regulation No.109/2012 showed that tobacco farmers are not affected by the regulations, especially the changes of land areas, earnings and prospects. Farmers still consider that tobacco is prospectus plant, due to tobacco can also be used as raw material for products other than cigarettes. The model of tobacco development is identified through responses land areas and productivity of tobacco, the behavior of the price of tobacco, consumption of tobacco, import of tobacco and export of tobacco.