Proceedings of the International Conference on Food, Agriculture and Natural Resources (FANRes 2018)

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The Impact of Clove Import Policy on Clove Market and Cigarette Production in Indonesia

Authors
Antik Suprihanti, Bonar M. Sinaga, Harianto Harianto, Reni Kustiari
Corresponding Author
Antik Suprihanti
Available Online November 2018.
DOI
10.2991/fanres-18.2018.55How to use a DOI?
Keywords
clove market, cigarette, import policy
Abstract

Indonesian government has applied clove import policy (which import only through licensed importer). The policy had caused consequences to the clove market and cigarette production. The aim of this research was to analyze the impact of the policy on clove market and cigarette production in Indonesia. This research used data series of 1990-2016 with the model of simultaneous equation system that have been estimated using 2SLS (Two-Staged Least Squares) method. The results showed that impact of clove import policy dropped the supply of clove, meanwhile demand of clove rose. Domestic clove price decreased both on industry by 3,02 percent and on farmer level by 3,96 percent and it cause the production of cigarettes increased by 0,31 percent. In the long run, the area of clove will decrease by 0,1 percent and decreased clove production by 0,03 percent. Impact of this policy more beneficial for cigarettes industries than for clove farmers. The decrease of clove price in the long period can impact on the sustainability of Indonesian clove production and can threaten the existence of Indonesian clove in the next future. Therefore, cooperation between farmers and cigarette industries and development of clove products is needed

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Conference on Food, Agriculture and Natural Resources (FANRes 2018)
Series
Advances in Engineering Research
Publication Date
November 2018
ISBN
10.2991/fanres-18.2018.55
ISSN
2352-5401
DOI
10.2991/fanres-18.2018.55How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Antik Suprihanti
AU  - Bonar M. Sinaga
AU  - Harianto Harianto
AU  - Reni Kustiari
PY  - 2018/11
DA  - 2018/11
TI  - The Impact of Clove Import Policy on Clove Market and Cigarette Production in Indonesia
BT  - Proceedings of the International Conference on Food, Agriculture and Natural Resources (FANRes 2018)
PB  - Atlantis Press
SP  - 273
EP  - 278
SN  - 2352-5401
UR  - https://doi.org/10.2991/fanres-18.2018.55
DO  - 10.2991/fanres-18.2018.55
ID  - Suprihanti2018/11
ER  -