This paper aims to examine the role of the tobacco agriculture and manufacturing industries in the economy of Temanggung Regency - as one of the largest tobacco producing areas in Indonesia. The role of the industry are analysed from the perspective of inputs and outputs of the tobacco agriculture and manufacturing which include: (1) the sectoral interlinkage of the tobacco agriculture and manufacturing; (2) the structure of domestic and imported inputs used by the tobacco agriculture and manufacturing industries; and (3) the impact of the tobacco agriculture and manufacturing industries to household income and employment. By employing impact analysis on 2017 Temanggung Input-Output table, this study finds the tobacco agriculture and manufacturing have a big role for the economy and welfare. The two scenario simulations - of all sector investments and generate transcend economic and welfare improvement of the tobacco agriculture and manufacturing, and other industries in Temanggung regency.
Keywords: Tobacco agriculture, tobacco manufacturing, Input-Output analysis, economic welfare