Jhonriz Steven Sitompul

The role of big data in addressing the tobacco fiscal paradox in Indonesia: A literature review and descriptive analysis of policy oversight effectiveness

Introduction

The role of big data in addressing the tobacco fiscal paradox in indonesia: a literature review and descriptive analysis of policy oversight effectiveness. Explore how big data can resolve Indonesia's tobacco fiscal paradox. This study reviews policy oversight effectiveness, digital literacy, and government trust to recommend innovative fiscal solutions.

Abstract

Background: The structure of the goods and services market in Indonesia cannot be separated from tobacco or cigarette commodities. In everyday life, households as consumers often include cigarettes—tobacco’s primary output—among their essential utilities, alongside food, clothing, and shelter, all of which are closely linked to household income. This situation gives rise to a paradox, particularly in light of the fiscal allocation to sectors other than health. Therefore, this study aims to analyze the literature and provide a descriptive review of the use of big data and the structure of the tobacco commodity market in order to identify effective fiscal policies for tobacco products. Methods: This study utilizes secondary data, including: (i) literature articles and legal or regulatory documents; (ii) data from Statistics Indonesia/Badan Pusat Statistik (BPS); (iii) the national and regional government budgets; (iv) World Development Indicators; and (v) our world in data by Oxford University. The research design focuses on Indonesia as the primary unit of analysis at the national level, which is then compared with other countries to generate a research synthesis through a literature review. This is further supported by descriptive analysis that serves as the basis for policy recommendations. Findings: The study reveals three main findings. First, there is a critical need to improve education, financial literacy, and digital literacy among the population. Second, strengthening public trust in government institutions is essential in order to increase state revenue. Lastly, the government’s utilization of digital technologies and big data plays a significant role in enhancing governance and policy effectiveness. Conclusion: The core issue identified in this study can be summarized as the need to address cross-budgeting challenges through innovations such as the use of facial recognition technology powered by big data to identify smokers. Novelty/Originality of this article: This study employs both theoretical and empirical literature, supported by descriptive analysis.

Review

This study endeavors to tackle the "tobacco fiscal paradox" in Indonesia, where tobacco's status as an essential commodity creates complex fiscal allocation challenges beyond the health sector. The authors propose to analyze existing literature and descriptively review the role of big data and the tobacco market structure to inform effective fiscal policies. The premise of addressing a significant policy issue in a large and relevant market like Indonesia, coupled with the aspiration to leverage big data for policy oversight, presents a promising and timely research agenda. The paper's strengths lie in its comprehensive approach to data collection, drawing from a wide array of secondary sources, including national statistics, government budgets, and international development indicators, alongside literature and legal documents. This multi-faceted data strategy supports a robust synthesis of existing knowledge and empirical trends related to tobacco consumption and fiscal policy. The identification of critical areas such as improving education (financial and digital literacy), strengthening public trust, and governmental adoption of digital technologies as prerequisites for effective governance and policy is a valuable contribution, highlighting fundamental societal and administrative challenges. However, the abstract presents some ambiguities regarding the depth and specificity of the 'big data' analysis. While the ambition to use big data is clear, the abstract does not fully articulate *how* such data specifically informs the analysis of the tobacco market structure or the precise mechanisms through which it addresses the fiscal paradox. The stated findings, while valid and important, appear somewhat general, and it's not immediately evident how they directly emerge from a distinct 'big data' analysis of the "tobacco fiscal paradox" itself. Furthermore, the concluding proposition of using facial recognition technology to identify smokers, while novel, seems a considerable leap from the preceding findings and may require more explicit justification and practical pathway derivation within the main text to substantiate its feasibility and ethical implications.

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