Analysis of Tobacco Downstreaming in Lampung Province as an Effort to Increase the Economy and Regional Income

Asrian Hendi Caya; Dedy Yuliawan; Asih Murwiati

doi:10.63922/ijebir.v5i03.2062

Asrian Hendi Caya Faculty of Economics and Business, University of Lampung, Indonesia.
Dedy Yuliawan Faculty of Economics and Business, University of Lampung, Indonesia.
Asih Murwiati Faculty of Economics and Business, University of Lampung, Indonesia.

DOI: https://doi.org/10.63922/ijebir.v5i03.2062

Keywords: Tobacco Downstreaming, Regional Income, MACTOR, Economic Policy, Lampung

Abstract

This study aims to comprehensively analyze the potential of tobacco industry downstreaming and evaluate its impact on economic improvement and regional income in Lampung Province. The method used is Multiple Stakeholder Analysis (MSA) through the MACTOR approach, specifically involving 7 main stakeholder actors and 5 strategic policy objectives. Mapping results indicate that the downstreaming ecosystem is currently controlled by the Industry actor (competitiveness score of 2.1), which is fundamentally supported by the role of Tobacco Farmers (1.9). The initial research hypothesis is confirmed: downstreaming has significant potential to increase regional income through the optimization of the Tobacco Product Excise Revenue Sharing Fund (DBH CHT). This is evidenced by the majority consensus of the actors on the objectives of Regional Economic Development and Illegal Cigarette Control. However, this governance still holds a structural paradox. Despite the formation of solid operational alliances (Industry-Farmers and Bappeda-Perindag), extreme divergence of interests occurs due to raw material price conflicts and bureaucratic orientation friction. Anomalously, NGO and Health institutions actually share a close position with the government on macro issues. In conclusion, the success of downstreaming heavily relies on the local government's capacity to mediate trade conflicts through partnerships (contract farming), reintegrate the role of the Plantation Office, and inclusively allocate DBH CHT for post harvest technology and public health mitigation.

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