20 June 2018

Kata Kunci
The economics of Kretek rolling in Indonesia, health population and nutrition global practice


Laporan Penelitian

World Bank Group (Nigar Nargis, Gumilang Aryo Sahadewo, Edson Correia Araujo, Pandu Harimurti, Jeffrey Drope, Qing Li, Josefine Durazo, Firman Witoelar Kartaadipoetra, Bondan Supraptilah Sikoki)

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The Economics of Kretek Rolling in Indonesia: Health Population and Nutrition Global Practice (Report on the Results of the 2016 Survey of Households Rolling Cigarette Cigarettes in Indonesia)

The report on the results of the Kretek Cigarette Rollers Household Survey in Indonesia was released. It was conducted by SurveyMETER in collaboration with the American Cancer Society (ACS) for the World Bank in October-December 2016. It was part of a series of research (3 in 1) with the Survey of Clove Farmers and Survey of Tobacco Farmers in Indonesia.

It was prepared in English by a research team from the three institutions including Bondan S. Sikoki and Firman Witoelar from SurveyMETER under two report titles. The first one is "The economics of tobacco taxation and employment in Indonesia: health population and nutrition global practice." The second one is entitled “The economics of Kretek rolling in Indonesia: health population and nutrition global practice.”

The second report identifies the socio-economic and labor market characteristics of kretek workers and their households from two major kretek districts producers: Kudus and Malang. The analysis is based on data collected from a survey sample of 720 kretek worker households. Details of the survey methodology are provided in Appendix A. The purposive selection of sample districts is driven by the high regional concentration of kretek cigarette factories. Based on the annual Industrial Survey (SI), 40 percent of Indonesian kretek workers are only in three districts, Kudus (21.4 percent), Kediri (10.2 percent), and Malang (8.6 percent) (World Bank, 2017a). It consisted of six sections, including the introduction.

The next section, part two, describes the socio-economic 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 is discussed in section four. Section five presents the simulation results of the impact of the cigarette excise policy reform on the livelihoods of kretek workers. Finally, section six concludes with a summary of the findings and policy recommendations.

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