Study finds no profit in growing tobacco in Indonesia

A survey conducted by the Muhammadiyah Tobacco Control Center (MTCC) suggests that growing tobacco in Indonesia is no longer profitable, according to a story in The Jakarta Post.

The MTCC surveyed during June and July 391 tobacco farmers and 191 former tobacco farmers in the three main tobacco producing areas of Central Java, East Java and West Nusa Tenggara.

According to Fauzi Ahmad Noor, a researcher with the MTCC, the survey indicated that only 16.8 percent of farmers found that tobacco growing was profitable. Thirty six point nine percent of farmers grew tobacco only because it was a family tradition to do so.

“Tobacco farming is not a profitable business according to Indonesian tobacco farmers,” he said at a press conference on Wednesday.

“Weather, the monopoly of the tobacco [purchasing] industry and government smoking controls all contribute to the risk potential of [tobacco] farming.”

Data from the MTCC indicated that the average monthly income of former tobacco farmers, at Rp2.5 million, was three times that of those still farming, Rp775,000.