The study aims to analyze the adaptation strategies and resilience of tobacco farmers to face unfavorable trading system. The research method refers to a qualitative approach with phenomenological models and case studies. The findings revealed tobacco farmers in Jember developed various adaptation strategies and resilience through farmer group organizations, partnerships, self-capacity building and access to financial institutions based on economic, social, cultural, and experience values from various sources and interactions among fellow tobacco farmers. The tobacco trading system, which is left to the market mechanism, results in low bargaining power of farmers, this encourages tobacco farmers to develop various adaptation and survival strategies, namely through collective activities of farmer groups, partnerships and self-development and access to financial institutions. Dealing with the unfavorable tobacco trading system, tobacco farmers do not switch to other commodity farming but adapt and make Jember a center for tobacco production in East Java and Indonesia. From this findings, it suggests to the government as the regulator does not only provide subsidies for tobacco farmers, but also must provide various technical assistance to increase the ability of tobacco farmers. More importantly, regulations must be made benefit tobacco farmers other than corporations so that equality can be enjoyed by tobacco economy players.
This study intended to examine the relationship between inflation and unemployment rate in Indonesia during 1987 to 2018 period. The study applied a quantitative method using Vector Error Correction Model (VECM) in order to comprehensively understand the causality between inflation and unemployment rates. The data were collected from various main sources including the World Bank, Central Bank of Indonesia, and Central Bureau of Statistics (BPS). The findings showed that inflation has a one-way relationship toward unemployment in Indonesia and it occurs at the third lag. Impulse Response Function (IRF), shows that the inflation rate are fluctuating in response to the shock of unemployment. The unemployment rate responses to shocks from inflation initially increased until it is eventually diminished. It shows that the shocks caused by the impact of inflation were only in the short term. Further, inflation in the three previous lags will have consequences for the unemployment rate in the year. Lastly, both in the long run and short run, unemployment did not affect inflation rates. These findings suggest that high inflation in Indonesia is determined the rising price of basic commodities and fuel. In addition, most companies in Indonesia applying capital intensive so that employment growth in Indonesia is small.