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The Economics of Kretek Rolling in Indonesia

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
World Bank Group.
Series:
Other Social Protection Study.
World Bank e-Library.
Other Social Protection Study
Language:
English
Subjects (All):
Health, Nutrition and Population.
Labor Market.
Labor Markets.
Macroeconomics and Economic Growth.
Poverty Reduction.
Public Health Promotion.
Social Protections and Labor.
Taxation and Subsidies.
Tobacco Use and Control.
Local Subjects:
Health, Nutrition and Population.
Labor Market.
Labor Markets.
Macroeconomics and Economic Growth.
Poverty Reduction.
Public Health Promotion.
Social Protections and Labor.
Taxation and Subsidies.
Tobacco Use and Control.
Place of Publication:
Washington, D.C. : The World Bank, 2017.
System Details:
data file
Summary:
This report identifies the socioeconomic and labor market characteristics of kretek workers and their households from two large kretek producing districts. The analysis in this report is based on data collected from a sample survey of 720 kretek workers' households from two large kretek producing districts, Kudus and Malang. The details of the survey methodology are provided in appendix A. The purposive selection of sample districts is driven by a high degree of regional concentration of kretek factories. Based on the annual Survey of Industry (SI), 40 percent of Indonesian kretek workers are in three districts only, Kudus (21.4 percent), Kediri (10.2 percent), and Malang (8.6 percent) (World Bank, 2017a). This report consists of six sections, including this introduction. The next section, section two, describes the socioeconomic 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 are covered in section four. Section five presents the simulated results of the impacts of cigarette excise tax policy reform on the livelihood of kretek workers. Finally, section six concludes with the summary of findings and policy recommendations.

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