Structural model of main problems to developing agribusiness tobacco-based non-smoking diversified products in jember

Abstract

Agribusiness tobacco has significance in the National economy. One of the tobacco-producing areas is Jember district, East Java. Tobacco agribusiness has driven the economy due in no small amount of labour absorption and the impact on other business sectors. Tobacco farming has cultured and heritage. But there is the fact that the main product of cigarette tobacco has become controversial. The controversy arose as a result of the negative impact of cigarettes on health. Efforts to diversify non-smoking tobacco products are urgent and essential. Diversification efforts will facilitate the sustainability of tobacco agribusiness while creating added value for tobacco farmers. This research aims to structurally analyze and model the main problems in the development of tobacco agribusiness based on non-smoking diversified products. Research methods use library studies and expert judgment to identify the constraints of agribusiness development, as well as use Interpretive Structural Modelling (ISM) analysis to create structural models. The results showed from 10 conditions, the factor of farmers' ability to diversify tobacco products and the high reliance of farmers on tobacco export companies are the main problems. They are critical factors for which must be overcome to develop agribusiness based on non-smoking diversified products.