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Tobacco plantation in Jember started before 1850,together with the other developed plantation areas in the Dutch East Indies eg. Coffee , sugar cane, rubber and indigo.

The Dutch figures named George Birnie was the initiator of the tobacco industry in Jember, on October 21st 1859 with Mathiesen and van Gennep, they established NV Landbouw Oud Djember Maatschappij (LMOD)

After the reformation of Dutch goverment and economy policies change, there was an open opportunity for private investors to establish plantation sectorals,so the tobacco companies grew rapidly.Moreover,it was also supported by the enactment Agrarian Law ( Wet Agrarische ) the enterpreneurs to the land usage within a period of 75 years (erfpacht authority/ Long-term land lease) .

When the selected plantation commodities had high sales value in the market world, tobacco for cigars had high demand, known to be perfect leaves,especially the leaves came from Deli - North Sumatra,Klaten, Central Java and East Java.This made the tobacco business grow by the advantage of exporting chanel, and as a result the economics growth increase very rapidly in the areas.

In addition to a fast economic growth,these industries also have an impact on demographic development and culture.In Jember, as it was previously a part of the into a part of the Bondowoso district, Regentschap developed into a part from bondowoso in 1883 Various facilities and infrastructure built in Jember for business tobacco, so Jember became the most advanced development and later in convert to the capital city of Besuki, include : Jember, Banyuwangi,Bondowoso and Situbondo.

After Indonesia's independence, DUtch companies were nationalized, based on Act no 86 of 1958. Furthermore, based on Goverment Regulation no. 4 of 1959 it was determined that the Dutch owned tobacco company further taken for nasionalized.

These companies were

1. NV. Landbouw Maatschappij Oud Djember in Adjong, Gambirono,Kertosari, West Djember,Oost Djember, Nangkaan
2. Besoeki Tabaks Maatschappij ( BTM ) at Mojo, Sumber Jeruk and Tamanan
3. NV. Cultivation Maatschappij Djelboek in Jelbuk and Soekokerto Jember
4. NV. Landbouw Maatschappij (SKM) Ex Dutch firms This turned into Plantation Company State (VAT)

A few years later those companies got improvement, up to 1972 became PTP XXVII and in 1966 became PT PTPN X ( PTPN X ) until now.

Meanwhile, at the beginning of the year 1960s, the development of the tobacco business Jember was very good, so the tobacco atmosphere trade was prospering, many companies are not strong to survive and brought them into bankcruptcy. After their ups and down, now there are on 18 exporters exist

The presence of the tobacco business is not just a business and cultivation plants, it is matter of land managment and of a large number of workers involvement.In addition,it also multiply the economic effect include the contribution of people's mobility , such as transportation, street vendors mobility and sale of bamboo.