The Impact of Smoking on Poverty: Evidence from Indonesia

Arowadi Lubis, M. Reza Bukhori Ahmad, M. Ghafur Wibowo, Amalia Nur Zahra


This study investigates the impact of cigarette consumption on poverty incidents in Indonesia, control for Regional Gross Domestic Products, Consumption Credit, Human Development Index, and Unemployment. The data is obtained from the Bureau of Statistical Center (BPS) and the Financial Services Authority (OJK). The analysis is conducted by employing the Static Panel Data Model, namely Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). Among the three, REM is the best model according to Chow and Hausman Test.  The finding shows that cigarette consumption in Indonesia tends to worsen poverty, indicated by the positive and significant relationship between cigarette consumption and poverty in REM analysis. Moreover, RGDP also has a significant and positive effect on poverty. It means that RGDP is not able to reduce poverty in Indonesia. Hence, it can be concluded that the impact of cigarette consumption in increasing poverty outweighs the impact of cigarette production in decreasing poverty through RGDP.


poverty, smoking, cigarette consumption

Full Text:



Afif, M. N., & Sasana, H. (2019). Pengaruh Kemiskinan, Pendapatan Per Kapita, Harga Rokok, Produksi Rokok Terhadap Konsumsi Rokok Di Indonesia. Diponegoro Journal of Economics, 1(1), 88–96.

Ahmad, Syarif, M., Saranani, F., & Rumbia, W. A. (2019). The Impact of Human Development Index on Poverty in Southeast Sulawesi. International Journal of Economics and Management Studies, 6(12).

Ashraf, A., & Hassan, M. K. (2013). An Integrated Islamic Poverty Alleviation Model. In Contemporary Islamic Finance: Innovations, Applications, and Best Practices.

Atalay, R. (2015). The Education and the Human Capital to Get Rid of the Middle-income Trap and to Provide the Economic Development. Procedia - Social and Behavioral Sciences, 174.

Banerjee, A. V., & Duflo, E. (2011). The Economic Lives of the Poor. SSRN Electronic Journal.

Bauer, P. T. (2019). The vicious circle of poverty. In The Gap Between Rich and Poor: Contending Perspectives On The Political Economy of Development.

Bloom, D.E., Cafiero, E.T., Jané-Llopis, E., Abrahams-Gessel, S., Bloom, L.R., Fathima, S., Feigl, A.B., Gaziano, T., Mowafi, M., Pandya, A., Prettner, K., Rosenberg, L., Seligman, B., Stein, A.Z., & Weinstein, C. (2011). The Global Economic Burden of Noncommunicable Diseases. Geneva: World Economic Forum.

BPS. (2021a). Indeks Pembangunan Manusia 2020. Jakarta: Badan Pusat Statistik.

BPS. (2021b). Penghitungan dan Analisis Kemiskinan Makro Indonesia 2021. Jakarta: Badan Pusat Statistik.

BPS. (2021c). Ringkasan Eksekutif Pengeluaran dan Konsumsi Penduduk Indonesia. Jakarta: Badan Pusat Statistik.

BPS. (2022). Rokok vs. Kemiskinan.

Hidayat, E. W., Rosyadi, & Bariyah, N. (2020). Human Development Index, Unemployment and Poverty Rate in Kalimantan Barat. Seminar Akademik Tahunan Ilmu Ekonomi Dan Studi Pembangunan (SATIESP 2020).

Hu, T. W., Mao, Z., Liu, Y., De Beyer, J., & Ong, M. (2005). Smoking, Standard of Living, and Poverty in China. Tobacco Control, 14(4), 247–250.

Kristina, S. A., Endarti, D., Wiedyaningsih, C., Fahamsya, A., & Faizah, N. (2018). Health Care Cost of Noncommunicable Diseases Related to Smoking in Indonesia, 2015. Asia-Pacific Journal of Public Health, 30(1).

Kusnandar, V. B. (2021). Realisasi Penerimaan Cukai Hasil Tembakau Naik 3,67% pada 2020.

Liu, Y., Rao, K., Hu, T., Sun, Q., & Mao, Z. (2006). Cigarette Smoking and Poverty in China. 63, 2784–2790.

Mad, A., Syarif, M., Saranani, F., & Rumbia, W. A. (2019). The Impact of Human Development Index on Poverty in Southeast Sulawesi. International Journal of Economics and Management Studies, 6(12), 30-36.

Mankiw. G. N. (2017). Principle of Macroeconomics. 7th Edition. New York: Worth Publishers

Nasrudin, R., Trialdi, L., Hartono, D., & Ahsan, A. (2013). Tobacco Economic of Indonesia: Poor Households’ Spending Pattern, Tax Regressivity and Economic Wide Impact of Tax Simplification.

Satti, S. L., Hassan, M. S., Hayat, F., & Paramati, S. R. (2016). Economic Growth and Inflow of Remittances: Do They Combat Poverty in an Emerging Economy? Social Indicators Research, 127(3).

Sehrawat, M., & Giri, A. K. (2018). The impact of financial development, economic growth, income inequality on poverty: evidence from India. Empirical Economics, 55(4). 1585-1602.

Supriadi, A. Y., & Rusyiana, A. (2018). Beras atau Rokok - Beban Ekonomis Rumah Tangga Miskin di Indonesia 2014. 10, 27–38.

Todaro, M. P., & Smith, S. C. (2015). Economic Development Twelfth Edition (Twelfth). Pearson Education.

Triono, D. C. (2020). Falsafah Ekonomi Islam (Revisi). Irtikaz.

Wooldridge, J. M. (2013). Introductory Econometrics: A Modern Approach, Fifth Edition (5th ed.). Cengage Learning.

World Bank. (2021). Poverty in Luxembourgh.

World Population Review. (2018). Smoking Rates by Country 2021.

WorldBank. (2021). Population Data of Malaysia.

Yunita, E. (2018). Pengaruh Konsumsi Rokok Terhadap Kemiskinan Di Provinsi Aceh, (2014-2018). Transformasi Administrasi, 08(November), 214–224.

Zahrawati, F. (2020). Pembebasan Jerat Feminisasi Kemiskinan. AL MA’ARIEF : Jurnal Pendidikan Sosial Dan Budaya, 2(1).



  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Jurnal Ekonomi Pembangunan
Jalan Raya Palembang-Prabumulih Km. 32
Jurusan Ekonomi Pembangunan, Fakultas Ekonomi Universitas Sriwijaya
Indralaya, Sumatera Selatan, Indonesia
Email:, Tel/Fax : (0711)580231

p-ISSN: 1829-5843, e-ISSN 2685-0788

Creative Commons License

Jurnal Ekonomi Pembangunan by 

is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.  

Jurnal Ekonomi Pembangunan is Indexed by:

Logo Google Scholar Unsri  Moraref One Search