INDONESIA

EXPORT OVERVIEW

Export Overview comprises information regarding the national exports of tobacco leaf

IN THE WORLD

1%

Percentage that the country represents in the international tobacco leaf trade (Source: calculated from data from FAO)

PRODUCTION OUTLOOK

Types of tobacco leaf grown in 2017 (Source: ITGA): Local Tobacco, Virginia, White Burley, Deli, Vorstenland, Besuki

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

PEOPLE INVOLVED IN TOBACCO

Employment numbers of the tobacco leaf value chain in 2017 (Source: ITGA): Growers: 527 688; Value chain: 10 Million

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

KEY INSIGHTS

Key statistics of the tobacco leaf production in the country

206

AREA

Thousand Hectares (2017), Source: ITGA

198

PRODUCTION

Thousand Tons (2017), Source: ITGA

0.39

AREA/GROWER

Hectares per Grower (2016), Source: ITGA

132

EXPORT VALUE

Million US$ (2017), Source: UN Comtrade

202

PRODUCTION VALUE

Million US$ (2019), Source: UN Comtrade

960

YIELD

kg per Hectare (2017), Source: ITGA

1,303

REVENUE/HA

US$ per Hectare (2017), Source: Calculated by ITGA 

TOBACCO IN INDONESIA

Brief contextualization of the importance of Tobacco in Indonesia

85%

EAST AND CENTRAL JAVA

Region % of Indonesia’s tobacco production
I

ndonesia is the country with the highest smoking rates. Much of the tobacco grown in the country is absorbed by the domestic market. The country only exports a small percentage of the tobacco it produces. The major share of tobacco is cultivated in the regions of East and Central Java. In these regions, the crop occupies an important role for income generation and employment. Tobacco farming in Indonesia is mainly a family endeavor. Growers favor growing Virginia for the higher prices this variety of tobacco fetches. This type of tobacco leaf is flue-cured and is more labor and resource intensive than Burley which is air-cured. As the crop is more labor intensive than other alternative, it generates higher demand for employment. As such, even though the amount of land under tobacco is smaller in comparison, its weight on employment is much higher. Tobacco provides significant revenues to the Government through excise taxes. In 2017, tobacco products tax revenue amounted to over US$ 11.2 billion, an important portion of the total Government revenue. In 2016, the illicit trade represented close to 12% of the tobacco products market with a value of US$ 1.9 billion. According to recent studies, the tobacco products market is estimated to continue growing at a compound annual growth rate of 4.80% until 2023.

Sources: Tobacco and Nicotine Database,Tobacco Reporter, Food and Agriculture Organization of the United Nations (FAO), The Economics of Tobacco Farming in Indonesia and ITGA.

TOBACCO GROWING IS AN IMPORTANT SOURCE OF INCOME AND EMPLOYMENT FOR MANY INDONESIANS. TOBACCO IS A RELEVANT SOURCE OF GOVERNMENT TAX REVENUE

EXPORT PARTNERS

This section aims at identifying the most important commercial partners in terms of Value and Quantity (Source: Calculated from data from UN Comtrade)

  • GERMANY 20%

  • SRI LANKA 14%

  • DOMINICAN REPUBLIC 12%

  • BELGIUM 8%

  • USA 8%

  • OTHERS 38%

  • DOMINICAN REPUBLIC 19%

  • USA 18%

  • BELGIUM 11%

  • EGYPT 9%

  • VIETNAM 7%

  • OTHERS 36%

                                    VALUE (2017)                                                                                                          QUANTITY (2017)