ABSTRACT
Tobacco farmers who are vulnerable to poverty are inversely proportional to cigarette factory owners and cigarette excise revenue in Indonesia, whereas the total tobacco plantation area and production of farmers cover about 99% compared to the existing tobacco plantation area and production. This contradiction shows that the excise sharing funds to local governments and farmers are not an optimal and imprecise target. Based on the qualitative research based by sourcing secondary data (literature review and library research) and primary data (interviews with tobacco farmers) and by considering the poverty theory, one conclusion is produced. As the e-governance in tobacco excise sharing funds is not been implemented in Indonesia, the central government needs to consider e-governance in tobacco excise sharing funds in reducing the poverty of tobacco farmers through comfort, efficient, and transparent business processes and in mutually reinforcing parties (the government, cigarette manufacturers, and tobacco farmers) in increasing tobacco excise revenue.
