Abstract—This study aims to determine the economic and social externalities of the existence of the cigarette industry in Indonesia. This research is exploratory research with descriptive approach. The interview method is used to obtain information from respondents who are randomly selected or judgment sampling. The existence of the cigarette industry has an impact on increasing the income of employees and the community. In addition, it creates positive perceptions of the community related to the availability of employment and the creation of business fields, while negative perceptions are the waste generated by the factory, to the feeling of jealousy from the people who are not absorbed as employees of cigarette factories.