Economics of Tobacco Control: The Role of Tobacco in the National Economy

Ayu Aulia

Abstract

The tobacco control regulations in Indonesia are faced with a dilemma in relation to its role in the national economy and its health impact. This can be seen from the intention of the Indonesian government to ratify the Framework Convention on Tobacco Control (FCTC). Such conditions make Indonesia a potential market for the tobacco industry. This research has used the descriptive research methodology with a literature study approach and secondary data. The results show the role of tobacco in the national economy as can be seen from its role as the source of state excise revenue, sources of employment and income for society. The main contribution of the tobacco industry is the source of excise revenue, while the related employment and income sources are relatively small. This is not comparable with the negative impact that Indonesian society receives, namely the decrease in health status and the large health expenditure from the associated negative impact. The biggest beneficiaries of the tobacco industry is the large-scale cigarette industry and multi-national cigarette companies. Firm policies from the Indonesian government are needed to minimise the negative impact of smoking. Given the greater negative impact compared to the positive impact of tobacco, the government must immediately sign and ratify the Framework Convention on Tobacco Control (FCTC) as a legal umbrella for tobacco control.

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Paper Citation


in Harvard Style

Aulia A. (2017). Economics of Tobacco Control: The Role of Tobacco in the National Economy.In Proceedings of the 4th Annual Meeting of the Indonesian Health Economics Association - Volume 1: INAHEA, ISBN 978-989-758-335-3, pages 78-81. DOI: 10.5220/0007024100780081


in Bibtex Style

@conference{inahea17,
author={Ayu Aulia},
title={Economics of Tobacco Control: The Role of Tobacco in the National Economy},
booktitle={Proceedings of the 4th Annual Meeting of the Indonesian Health Economics Association - Volume 1: INAHEA,},
year={2017},
pages={78-81},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007024100780081},
isbn={978-989-758-335-3},
}


in EndNote Style

TY - CONF

JO - Proceedings of the 4th Annual Meeting of the Indonesian Health Economics Association - Volume 1: INAHEA,
TI - Economics of Tobacco Control: The Role of Tobacco in the National Economy
SN - 978-989-758-335-3
AU - Aulia A.
PY - 2017
SP - 78
EP - 81
DO - 10.5220/0007024100780081