Sustainability Analysis of Tobacco Product Excise Revenue Sharing Funds (DBHCHT) and Tobacco Farmers’ Welfare in Jember Regency
Abstract
Research Originality — Existing studies on tobacco excise predominantly examine its contribution to state revenue and broader fiscal performance, with limited attention to the sustainability of the Tobacco Product Excise Revenue Sharing Fund (DBHCHT) as a fiscal decentralization instrument. In particular, empirical investigations that assess the multidimensional sustainability of DBHCHT and its linkage to tobacco farmers’ welfare at the local level remain scarce. This study addresses this gap by providing a comprehensive sustainability assessment of DBHCHT and examining its implications for farmers’ welfare in Jember Regency.
Research Objectives — The objective of this study is to assess the sustainability status of DBHCHT across economic, social, and environmental dimensions, and to analyze its influence on the welfare of tobacco farmers in Jember Regency.
Research Methods — A quantitative descriptive research design was implemented. Multidimensional scaling (MDS) analysis was conducted using the Rapid Appraisal for DBHCHT approach to assess and quantify the sustainability status of DBHCHT across economic, social, and environmental dimensions.
Empirical Result — The findings show that the sustainability of DBHCHT in Jember Regency is at a moderate level, indicating that the program has not achieved optimal performance across economic, social, and environmental dimensions. Several key aspects require strategic improvement to strengthen program effectiveness and alignment with local needs. Despite the substantial allocation of DBHCHT funds in 2023, the results suggest that the distribution has not generated a meaningful improvement in the welfare of tobacco farmers.
Implications — This study provides policy recommendations for local governments, particularly regional financial management agencies and sectoral offices responsible for DBHCHT allocation, to redesign fund distribution mechanisms toward more targeted, transparent, and welfare-oriented programs. Strengthening monitoring, performance-based budgeting, and farmer-centered interventions is essential to ensure that DBHCHT effectively contributes to sustainable rural development.
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