DAYA SAING TEMBAKAU VIRGINIA LOKAL DI PASAR DALAM NEGERI

Local Virginia tobacco is the main material for the production of white cigarretes in Indonesia, but local supply is unable to meet increasing domestic demand. This paper studies the competitiveness of local Virginia tobacco in the domestic market compared to imported products by applying Competitive Position Analysis (CPA). CPA analyzes both quality and cost based competitiveness. The data used in this study are from field research in Bojonegoro (Jawa Timur) and Lombok Timur (Nusa Tenggara Barat). This study finds that the factors affecting the competitiveness of local tobacco are price, quality, taste, and stable and continue supply. The price of local Virginia tobacco is less competitive and the quality is low due to limited products and variety and poor taste. Therefore, the competitive position of local Virginia tobacco is low. To improve the competitivenes of Indonesian tobacco, the government should provide farmers with extension services on effective and efficient farming techniques and promote the availability of better varieties of tobacco seeds.