Potency of Tobacco

Abstract

This article aims to explain the potential of tobacco beyond its use as a raw material for cigarettes. Tobacco is a vital commodity for the Indonesian economy. Until today, tobacco excise tax on cigarettes contribute significantly to national economic expenditures budget. However, health issues that have raised global awareness of the dangers of smoking have threatened tobacco farming at the farmer level. This article is a descriptive analysis, exploring issues from various sources, including scientific reports, empirical studies, and news circulating in the community, regarding tobacco issues. The solution to changing the negative stigma of tobacco is to diversify its derivative products, beyond cigarettes. This article begins by analyzing the agribusiness context, including the various dimensions involving tobacco industry interests: production, human resources, economics, and socio-cultural aspects. The explanation continues with a discussion of possible product diversification opportunities.