Tobacco productivity in the Jember Regency is related to regional income. Generally, the definition of regional income collected is based on regional regulations by statutory regulations. Regional Original Income (ROI) comes from Regional Taxes, Regional Levies, and the results of regional wealth management. One of the revenues obtained from regional wealth management is Revenue Sharing Funds (RSF). These funds are allocated to producing regions based on a specific percentage figure to reduce the gap in financial capacity between the Central and Regional Governments.

The problem was that revenue from tobacco or cigarette excise until the end of August 2023 had only reached IDR 126.8 trillion, or the equivalent of 54.53% of the target in the 2023 State Budget, IDR 232.5 trillion. This realization decreased by 5.82% compared to the achievement in the same period of IDR 134.65 trillion last year. The potential loss to the state from these excise-free goods is estimated at IDR 10,045,053,464.-. These illegal excisable goods have resulted from enforcement since 2022, with 15,884,601 cigarettes of HT, 10,500 grams of TIS, and 1,595.57 liters of MMEA. , with potential state losses reaching IDR 10,045,053,464.-. The details of the destroyed items included 2,370,980 cigarettes, which resulted from action taken by the East Java Regional Office, including the Jember Regency. 

Excise policies are used to control consumption and consider health aspects and the impact on the parties involved, in this case, tobacco farmers. In this case, tobacco farmers are one of the parties most affected by the excise policy, which makes cigarette companies reduce their production costs, including raw materials for tobacco production from farmers. To overcome this, the government issued regulations regulating the use of tobacco excise revenue-sharing funds obtained to be given to affected parties. These funds are used to improve the welfare of tobacco farmers, which are allocated by providing direct cash assistance, assistance with raw materials for cutting tools, superior seeds, pesticides, fertilizers, capital assistance, and human resource development.

Tobacco Excise Revenue Sharing Fund ab, abbreviated as TERSF, is part of the Transfer to Regions, distributed to excise-producing provinces and/or tobacco-producing provinces to realize the principles of justice and balance in managing the State Budget. Jember Customs and Excise has supervisory areas in three districts: Jember Regency, Bondowoso Regency, and Situbondo Regency. Jember Regency is the district that receives the highest TERSF in the Jember Customs and Excise supervision area. The amount of TERSF received will increase every year. The allocation of Tobacco Excise Revenue Sharing Funds (TERSF) will increase  from 2% to 3% starting in 2023. 

It is by Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (Financial Relations between Central and Regional Government Law). The TERSF allocation always increases yearly in line with the increase in tobacco excises revenue realization.

Two main factors caused the increase in TERSF for each region: excise revenue and tobacco production. Jember Regency experiences an increase in TERSF revenues every year. In 2021, TERSF funds amounted to IDR. 74,953,766,000.00, while in 2022, it will increase to Rp. 109,261,811,000.00. According to Minister of Finance Regulation Number 215/PMK.07/2021 regarding the use, monitoring, and evaluation of TERSF, it is regulated with the following provisions: 50% is allocated to the community welfare sector, 10% is allocated to the health sector, 40% is allocated to the health sector.

Based on the description of the background and problems, researchers are interested in identifying and analyzing them in more depth. The results of this research will be presented in the form of a scientific paper titled "Analysis of Governance for the Use of Tobacco Excise Revenue Sharing Funds (TERSF) in Jember Regency."

Formulation of the problem

Based on the background description, the researcher can formulate the problem: "How is the analysis of governance for the use of tobacco excise revenue sharing funds (TERSF) in Jember Regency?"

Literature review

Excise: Excise is an indirect tax levy on the consumption of goods with specific characteristics based on specific motivations from the government. The government collects excise to control the production, consumption, and circulation of excisable goods. According to the Excise Law, excise is levied on goods with specific properties and characteristics. The nature and characteristics of goods subject to excise are goods whose consumption needs to be controlled, whose circulation needs to be monitored, whose use can hurt society and the environment, and whose use requires the imposition of state levies for justice and balance [2].

Revenue Sharing Fund of Tobacco Products Excise (TERSF)

The term revenue sharing system is defined as a system of procedures for sharing business results between fund providers and fund managers. In this case, the subject of the revenue sharing system is between the Central Government, which acts as the fund provider, and the Regional Government as the fund manager. According to Article 1 of Law No. 33 of 2004 concerning the Financial Balance between the Central and Regional Governments, it is explained that Revenue Sharing Funds are funds sourced from State Budget revenues allocated to the Regions to fund Regional needs in the context of implementing Decentralization [1].

Minister of Finance Regulation Number 206/PMK.07/2020 explains that the Tobacco Excise Revenue Sharing Fund (TERSF) is a provincial transfer distributed to excise and/or tobacco-producing regions. Distribution of TERSF is carried out by transfer from the state general treasury account to the provincial general treasury account and then to the district/city regional treasury account. After receiving the tobacco excise revenue sharing funds, the Governor must manage and use the TERSF and regulate its distribution to the Regent/Mayor of each region based on the size of the contribution to tobacco excise revenue.

Research methods

The method used in this research is a literature study, which functions as a guide in studying a research problem (review of research). In this literature review research, national journals and supporting literature were used, which have been summarized and analyzed. This literature review research was conducted from October to December 2023.

Discussion

Governance of Tobacco Excise Revenue Sharing Funds (TERSF) in Jember Regency: East Java Province is still the most extensive national tobacco producer. One of the regions in East Java that is the largest tobacco producer is Jember Regency. In 2021, Jember Regency had a tobacco area of 16,484 ha, consisting of Javanese tobacco varieties covering an area of 1,009 ha, Kasturi Tobacco covering an area of 9,585.50 ha, and Besuki Na Oogst Tobacco covering an area of 5,889.50 ha. Tobacco production in Jember in 2021 was 24,285 tons, consisting of Javanese tobacco at 1,164 tons, Kasturi Tobacco at 14,378.25 tons, and Besuki Na Oogst Tobacco at 8,742.75 tons. Besuki Na Oogst Tobacco from the Jember district is very famous abroad. In 2022, the area of tobacco farming will reach 25,000 hectares, with Na Oogst Tobacco's productivity having a production level of 65,002.50 quintals. Meanwhile, Voor Oogst is 143,782.50 quintals [3-5].

In the earmarking policy, the government has intervened, which has been implemented since 2008 through funds for the Tobacco Excise Revenue Sharing Fund (TERSF), established based on Law Number 39 of 2007 concerning Amendments to Law Number 11 of 1995 concerning Excise. The policy has a minimal impact on reducing tobacco consumption. According to Sitepu, earmarking or Earmarket means funds or capital set aside to fund a particular project or activity.

Earmarking funds can be used for activities aimed at facilitating the replacement of tobacco farmers and workers who are affected by the lack of cigarette consumption in the tobacco industry. Government intervention in TERSF during the COVID-19 pandemic was carried out by the Minister of Finance, Minister of Finance Regulation Number 206/PMK.07/2020. This policy aims to increase the portion of allocations for community welfare and refocus budget allocations. There is an increase in TERSF every year, and its utilization must be transparent, accountable, and orderly. Another intervention is establishing a tobacco products industrial area to cluster the tobacco cigarette industrial area with a better arrangement.

According to Minister of Finance Regulation Number 215/PMK.07/2021 regarding the use, monitoring, and evaluation of TERSF, it is regulated with the following provisions:

• 50% (fifty percent) is allocated for the field of community welfare, with details of 15% for activities to improve the quality of raw materials and skills improvement activities and 35% for activities assisting,

• 10% (ten percent) is allocated for,

• 40% (forty percent) is allocated to the health sector

Asset Management Dimensions

Research results regarding the acceptance of the Tobacco Excise Revenue Sharing Fund (TERSF) in the asset management dimension show that the Regional Government, through the Jember Regional Development Agency, has collaborated with Jember Customs and Excise, especially after receiving a shift in the funding budget during a specific period. Figure data in 2022, the Customs target for revenue received from Customs is IDR 1,297,054,181,000,-, Excise is IDR 107,080,877,000,- and the total is IDR 1,404,135,058,000,-. Following the expected target, the actual funds received by Customs amounted to IDR 1,357,613,284,000,-, Excise amounted to IDR 152,518,070,820,- and the total amount of Customs and Excise amounted to IDR 1,510,131,354,800,-. The realization of these funds was around 107.5%. (Data source: Customs Excise 2023, processed)

Dimensions of Accountability

Research result regarding the acceptance of the Tobacco Excise Revenue Sharing Fund (TERSF) on the accountability dimension shows that the data list of implementation of activities to take action against the Distribution of illegal cigarettes  in  Jember   Regency the achievement of the actions as outlined in the following table is obtained: Data in Table 5.2 shows that from 2017 to 2020, efforts to take action against illegal cigarettes experienced an increasing trend. In 2020, the number of actions taken was 8,155 times, an increase of 41.23% YoY compared to 2019, with a hit rate of 25 catches/day.

Table 5.3 Jember Regency Illegal Cigarette Action in 2022

Data in Table 5.3 shows that Jember Customs and Excise also oversees Bondowoso Regency and Situbondo Regency and has succeeded in acting illegal cigarettes with ±2,073,117 cigarettes. This data is easily accessible to all Jember Regency residents through the official Jember Customs and Excise account. It is carried out as a form of openness and transparency so that the public can fully trust the government to eradicate the circulation of illegal cigarettes. The following action that can be implemented is for the Jember Regency Regional Government and Jember Customs and Excise to evaluate the implementation of law enforcement activities every semester [6-9].

Verification of Concerning Data Governance of the Utilization of Tobacco Excise Revenue Sharing Funds (TERSF) in Jember Regency

In the discussion description, the researcher has explained the research results of the analysis of the governance of the Tobacco Excise Revenue Sharing Fund (TERSF) in Jember Regency using the grand theory of Stewardship Theory. As the material for conducting participatory observations, in-depth interviews to obtain information and take supporting documentation related to using Tobacco Excise Revenue Sharing Funds (TERSF) in Jember Regency.

As part of utilizing the Tobacco Excise Revenue Sharing Fund (TERSF), the construction of asset management, accountability, transparency, and human resource competency is used. In the comparison of all these dimensions, the researcher includes a table between expectations and reality or reality from the explanations of the primary and additional informants in the implementation Utilization of Tobacco Excise Revenue Sharing Funds (TERSF) in Jember Regency are as follows:

Table 1: Achievements of Jember Customs Enforcement in 2022

Source: Jember Customs, Processed 2023

Table 2: Jember Regency Illegal Cigarette Action in 2022

Source: Jember Customs and Excise, Processed In 2023

Table 4: Verification of TERSF Implementation Data for the Law Enforcement Division in Jember Regency

Source: processed, 2023

Figure 1: National Illegal Cigarette Enforcement 2013 to 2020

Data source: app.penindakan.net, data processed in 2023

The data in Table 5.4 shows that researchers have researched the implementation Utilization of the Tobacco Excise Revenue Sharing Funds (TERSF) in the Jember Regency. The criteria/dimensions by the grand Stewardship Theory, asset management, accountability, and transparency dimensions are appropriate and fulfilled [10-11].

Based on the description in the discussion, the researcher concludes the following:

• Research results regarding the acceptance of the Tobacco Excise Revenue Sharing Fund (TERSF) in the asset management dimension show that the Regional Government, through the Jember Regency Regional Development Agency, has collaborated with Jember Customs and Excise, especially after receiving a shift in the funding budget during a specific period

• Research results regarding acceptance of the Tobacco Excise Revenue Sharing Fund (TERSF) in the accountability dimension show that Bondowoso and Situbondo Regencies are under the auspices of Jember Customs and Excise. The results of the 2022 Jember Regency enforcement action include 1,796,261 illegal cigarettes. The value of the goods is IDR 2,283,781,840,- and the potential loss to the state is IDR 1,207,009,496,-. Data from Bondowoso Regency includes Illegal Cigarettes amounting to123,720stems, MMEA of 14 liters, Goods Value of Rp155,988,600,- and Potential State Losses of IDR83,243,880,-. Data from Situbondo Regency includes Illegal Cigarettes amounting to153,156stems, MMEA of 16 liters, Goods Value of Rp193,176,880,- and Potential State Losses of IDR102,956,417,-. So, if the three districts are combined, the number of illegal cigarettes is2,073,117sticks, MMEA of 30 liters, Goods Value of IDR 2.264,645,732,- and Potential State Losses of IDR 1.140,211,979,-

• Research results regarding acceptance of the Tobacco Excise Revenue Sharing Fund (TERSF) in the transparency dimension show that the utilization of TERSF funds for national and regional areas has increased in 2013-2020. This data is easily accessible to all Jember Regency residents through the official Jember Customs and Excise account. It is carried out as a form of openness and transparency so that the public can fully trust the government to eradicate the circulation of illegal cigarettes. The following action that can be implemented is for the Jember Regency Regional Government and Jember Customs and Excise to evaluate the implementation of law enforcement activities every semester

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4. Ahsan, A., et al. "(TERSF) for welfare." 1st ed., issue May, UI Publishing, 2022, https://protc.id/wp-content/uploads/ 2022/06/2022BukuTERSFdanKesejahteraanFarmersTembakau-Abdillahdkk-1.pdf.

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9. Summan, A., et al. "The potential global gains in health and revenue from increased taxation of tobacco, alcohol and sugar-sweetened beverages: A modeling analysis." BMJ Global Health, vol. 5, no. 3, 2020, https://doi.org/10.1136 /bmjgh-2019-002143.

10. Directorate General of Customs and Excise. "Allocation of TERSF 2021." 2021, https://www.beacukai. go.id/berita/ bea-cukai-berikan-paparan-allocation-TERSF-tahun-2021.html.

11. Surakarta Customs and Excise. "Dana bagi hasil cukai hasil tembakau TERSF 2022." 2022, https://bcsurakarta. beacukai.go.id/article/dana-bagi-hasil-cukai-hasil-tembakau-TERSF-2022/.