Name : Arghya Narendra DianastyaID : 5620000087Major : Economical Field CropUniv : Kasetsart University, Thailand

Economic Field Crop In Indonesia : Tobacco (Nicotiana tabacum L)

BACKGROUND :As the world number one consumption of cigarrete and one of the top 5 tobacco production in

the world as well as long history and culture, Indonesian Economic just cannot be stated without part of the “golden leave”, the tobacco plant. With good and breeze area, hill, rice nutrient soil, as well as humid and tropical temperature, make tobacco plant become suitable to grow and provide one of the best cigarrete to the rest of the world.

To understand more about one of the famous economic field crop in Indonesia, this term-paper will give a brief and easy understanding about tobacco plant in Indonesia.

HISTORY OF TOBACCO IN INDONESIA :Tobacco is a plant that grows natively in North and South America. On October 15, 1492,

Christopher Columbus was offered dried tobacco leaves as a gift from the American Indians that he encountered. Soon after, sailors brought tobacco back to Europe, and the plant was being grown all over Europe. Tobacco was introduced to France in 1556, Portugal in 1558, and Spain in 1559, and England in 1565.

Tobacco was introduced to Asia in 1575, when the Spanish brought it to the Philippines from Mexico, and in 1601 it was introduced to Java (one of the progressive island in Indonesia). In the mid-seventeenth century the Javanese started to use tobacco in pipes and in indigenous cigarettes. One of the famous Javenese Transcript (Babad Ing Sangkala) in 1601 also mentioned about this plant.

Tobacco became popular in Indonesia after Dutch was trying to ban the local to use a chewing betel (Latin name : Piper betle) as a additive and stimulant plant. Indonesian since the introduction of Tobacco plant, started using tobbaco as a traditional cigarrete and blend it with a special flower called clove to give a sweet taste that known as clove cigarette or Rokok Cengkeh Kretek.

Clove is the plant (used ony in the flower part) that only grown in Indonesia. According to the data, Indonesia is the single largest clove producer in the world; producing 79 thousand MT or 63% ofglobal clove production in 2000. Most (98%) of the cloves are produced by smallholder farmers; the rest are produced by commercial (1.6%) or government-owned farms (less than 1%). More than half of all clove farmers are located in 2 provinces: in 1999, Central Java had 394 thousand farmers (33%) and West Java had 240 thousand farmers (20%) (Keyser and Juwita, 2005).

Picture : Clove Flower

TOBACCO PRODUCTION (IN THE WORLD AND INDONESIA) :

Picture : Land Devoted to Growing Tobacco

According to the Tobacco Atlas, produced by the American Cancer Society and the World Lung Foundation, “tobacco is grown in 124 countries, using 3.8 million hectares of agricultural land. World tobacco production have the highest production in 1997 at over 9 million tonnes and has declined by almost a quarter to 7.1 million tonnes in 2009”. Tobacco is grown primarly in developing country, although United State also play a big role in controling tobacco production (http://www.geocurrents ) .

Graphic : Leading Tobacco Producers 2012

By 2012, China, Brazil, India, and the U.S., produce two-thirds, 67%, of the world’s tobacco. China is the global leader, producing 40% of the world’s total tobacco. Brazil trails as the second largest producer, with less than half of China. United States produces roughly 6 % of the world’s tobacco. Indonesia as one of the early sugarcane plantation in the world has droped the amount of production and come to number 5, followed by Argentina and Pakistan (http://worldtradedaily.com).

Picture: Top 5 Cigarrrete Exporting Countries

Tobacco that have already harvested than send to the tobacco factories. The largest concentration of such factories is found in China and Europe. Approximately 40% of all the cigarettes produced in 2010 were manufactured in China, followed by Russia (7%), the United States (6%), Germany (4%), and Indonesia (3%). While China and Russia produce cigarettes mostly for internal consumption, Indonesia becomes one of the largest exporter of tobacco around the world (57 billions tons) together with Germany (181 billions tons), the Netherlands (115 billions tons), Poland (89 billions tons), United States (60 billion tons) ( http://www.tobaccoatlas.org ).

Table : Tobacco Production by Province in Indonesia

Occording to the Directorate General of Estate (2013), East Java becomes the number one province produced tobacco until 2012. There is 18.23% growth in 2012 from the previous year. This province produce up to 135.747 ton in 2012, followed by Nusa Tenggara Province and Central Java.

TOBACCO CONSUMPTION ( IN THE WORLD AND INDONESIA) :

Graphic : Tobacco Consumption in ASEAN

As the place for the cheapest price of cigarrete in the world, Indonesia become one of the country that has high consumption of cigarrete, and become number one consuption in ASEAN, followed by Philippines and Vietnam (http://asia.nikkei.com/print/article/6700).

Picture: global smoking prevalence

Graphic : Adult cigarette-smoking rate in the world

Other sources also mention that Indonesia is number one user of ciggarete. Roughly 60% of Adult in Indonesia become addicted smoker, followed by China and Philippines (http://www.economist.com).

TOBACCO PLANTATION AREA IN INDONESIA :It is commonly known that the best tobacco for cigars comes mainly from tropical areas such as

Latin America, the Caribbean and Indonesia. The islands of Sumatra and Java have become the prefect place to grow tobacco in Indonesia (http://www.wismilakcigars.com).

Even today, tobaccos grown on Sumatra and Java are grown relatively using the same methods and techniques as they were in the 1600's. Tobacco in Indonesia widely recognized as the world's finest because of the island's particular combination of tropical weather and volcanic soil which hard to find in other places around the world. The region that relatively close to Indonesian growing tobacco region is in Cuba, where tropical wether, humidity and volcanic soil also found just like in Indonesia (http://www.wismilakcigars.com).

In Indonesia the most famous and number one place of growing tobacco is in East Java. In the Besoeki tobacco province, an area of east Java, 5,000 to 6,000 hectares are bedded, in biennial rotation. And in Central Java, there is Java-Vorstenlanden tobacco cultivation. The Besoeki tobacco from Java is often referred to as the "regal" tobacco and is world famous for its consistency and characteristics that are ideal for great cigars (http://www.wismilakcigars.com/).

Picture : The Map of Jember City, as the Center of Tobacco Production in East Java

One area of East java that become the center of tobacco production is in Besoki District, Sub District Jember. Tobacco has become the main income for almost all farmer in this Area. In fact, unofficially, this city or subdistrict aslo well known as the city of tobacco. One of the famous State University in this area (University of Jember) and City Logo also use Tobacco as their main symbol.

Picture : Logo of Jember University and Jember City that used Tobacco Leaf as its main symbol.

TOBACCO FACTORIES IN INDONESIA AND THE ECONOMICAL CONTRIBUTION :

Picture : Cigarrete Factories in Indonesia

As the picture discribed and shown in the red dot color, In indonesia, the cigarette factories mostly settle in East Java. Famous Company such as Gudang Garam, Wismilak, Sampoerna and Bentoel have a factories here.

In the country like indonesia, growing and selling tobacco contributes perhaps 10% of the Indonesian government's revenues and provides millions of jobs. In 2005, The biggest Western firms are diving in. Philip Morris International (PMI) bought Indonesia's Sampoerna for USD 5 billion, and

now controls 30% of the market. It was followed by British American Tobacco which bought an 85% stake in Bentoel for nearly USD 500m in 2009. Both companies saw sales volumes increase in Indonesia last year—mainly for kretek clove cigarettes, which account for over 90% of the Indonesian market (http://www.economist.com).

TABACCO VARIETIES GROWN AND PRODUCED INDONESIA :

According to the www.fairtradetobacco.com, There are many varieties which grown around Indoonesia, mostly in Sumatra and East Java. Those Varieties are :

TBN: Tembakau Bawah Naungan (shade grown tobacco). Consolidated Cigar's Besuki-TBN (developed in the 1980s), which is used on H. Uppmann and Romeo y Julieta, is a cross between besuki and Connecticut shade. TBN is the highest quality wrapper from Indonesia.

Na oogst [NO]: ("late harvest") In the dry season when rainfall is more moderate, protective shelters are not needed and the crop can be grown in the open with only natural irrigation. This is essentially sun-grown leaf. It can be of ANY specified variety.

Vroege oogst [VO]: ("early harvest") VBN: Vorstenlanden bawah naungan, roughly translated, Connecticut-shade grown in Central

Java. The quality is not as fine as TBN, but can still make excellent wrappers. Jatim: Jawa Timur, which is Indonesian, East Java. A cigarette variety. Lumajang: The capital of Lumajang Regency, in Indonesian, East Java. Madura: An island off the northeastern coast of Java. A cigarette variety. Bojolali: (Dark-Fired). Used for pipe and cigarette in East Java. Lombok: A cigarette variety. Beringin: A cigarette variety. Paiton: A cigarette variety. Curah Nangka: A cigarette variety. Maesan: A cigarette variety in East Java. Bojonegoro: A cigarette variety in East Jave. Kasturi: Used for pipe and cigarette blending.

Despite of many varieties exsisted, there are 2 types of varieties that mostly used in Indonesia, those varieties are the dark sun-cured Indonesia type tobacco mostly used for kreteks (also called Virginia-Kretek or Voor-Oogst) and dark air-cured Ta/Na Oogst tobacco used for cigar production and produced mainly for export.

Virginia-Kretek Tobacco It is planted in specific upland areas of Central Java (around Sindoro and Sumbing mountains,

for example). In these upland tobacco areas, Virginia-kretek tobacco is normally planted early in the dry season (mid-March to early-April. Harvesting generally begins at the start of July and continues through until the end of September with higher quality leaves and better prices usually prevailing later in the season (Keyster and Juwita, 2005).

There are three major cigarette companies in Indonesia that manufacture kretek cigarettes including Gudang Garam, Djarum, and Bentoel. Although the tobacco industry is competitive between these companies, individual farmers often have little leverage in negotiating with the village traders and must normally accept whatever price is offered. Smallholder farmers in some areas have the option of selling tobacco directly to the large factories, but the prices offered at the factory gate tend to be lower than those from a village trader (Keyster and Juwita, 2005).

TBN/Na oogst TobaccoThese tobacco crops are grown almost entirely under the direct management of PTPN-X

(Government Agriculture Company) using a land-lease system it was not possible to estimate an individual smallholder enterprise model as was done for Virginia-kretek tobacco (Keyster and Juwita, 2005).

FAMOUS CIGARETTE BRAND IN INDONESIA :

Picture : Famous Cigarrete brand in Indonesia

BOTANY OF TOBACCO :

Picture : Morphology of Tobacco

The Stem

The inter-nodes may be very short presenting a rosette appearance or even as long as 20-24 cm.

The stems are usually round covered with glandular hairs with a tendency to produce branches near the base known as "Suckers".

The plants of rustica are more robust and densely growing than that of tabaccum. If there are few leaves, the plant has an open appearance, but if they are numerous, the plants have a bushy appearance.

The Leave

The size of leaves may vary from 15 cm to 100 cm or even more in length. They may be narrow, long and drawn out like a whip, elliptical or broadly ovate with a marked variation even in the same plant.

The leaf angle varies from an upright to horizontal with dropping at the base, in the centre or at any point of the leaf.

The leaf base may be sessile or petiolate differing in the development of wings having a breadth 5-6 cm. Sometimes in some sp. the auricles are also observed.

The lateral veins may be perpendicular to the midrib as in 'wrapper tobacco or may make acute angle with various intergrades as in 'Now' .The types to phyllotaxy normally observed are 1/3, 2/5, 3/8 and rarely 5/13.

The Flower

The tobacco has a terminal receme panicle which may be compact to very lax with a short or long peduncle. The inflorescence in main axis always flowers first and the side branches thereafter in order from top towards bottom.

The flowers are usually 5 cm in length and vary in their colour from pink, yellow, purplish, or white. The shape varies from funnel to flute.

The development of green colour differs in its intensity both inside and outside the Corolla tube. The corolla may be wheel shaped with acute apices to pentagonal shape and obtuse tips. Calyx is usually tubular but in few types leaf is globular and inflated.

Seed

Seeds are spherical or broadly elliptic with variation in degree of ridging on the seed coat. The colour varies from dark brown to light brown.

CULTIVATION METHOD OR TOVACCO :

PRODUCTS DERIVED FROM TOBACCO :As a plant, tobacco is used for many purposes. Not only dried tobacco leaves that used as a

main material for cigarette, this Solanaceae Family plant is also used for bioengineering, ornamental, as well as pesticides and medications.

REFERENCES

http://www.geocurrents.info/economic-geography/global-patterns-of-tobacco-related-economic-issues#ixzz2zCm73htj

http://www.wismilakcigars.com/about3.php?subaction=showfull&id=1313638780&archive=&start_from=&ucat=&

http://asia.nikkei.com/print/article/6700

http://fairtradetobacco.com/threads/606-Indonesian-Tobacco-a-discussion

http://worldtradedaily.com/2012/08/04/trade-data-report-export-import-profile-of-the-global-and-u-s-tobacco-industry/

http://www.tobaccoatlas.org/industry/manufacturing/cig_production/

http://www.economist.com/node/18486173

Keyser and Juwita. 2005. Smallhollder Tobacco Growing in Indonesia. Economic Tobacco Control Volume 27.