Abstract

Tobacco production is a sector that acts as one of the country's foreign exchange earners from the total value of exports owned by the Indonesian state. Tobacco itself is a plant originating from America which has been cultivated for centuries, then became one of the agricultural products that has an important role because it is a producer of excise and as a source of foreign exchange in the Indonesian economy. Therefore, there are several influences that need to be considered to increase tobacco productivity. The purpose of this research is to analyze the effect of working capital, labor, and land area on tobacco production in East Java province. The data used in this study is quantitative data with secondary data types from 2017-2021. The analytical method used in this research is panel data analysis method with models Fixed Effect Model (FEMS). The results showed that working capital variables, labor variables, and variables land area has a positive influence on tobacco production in the province of East Java.

Keywords: Tobacco Production, Working Capital, Labor, Land Area