Tobacco trading is a tobacco marketing system from farmers to consumers. In the global trade system, local tobacco farmers compete with tobacco manufacturers from abroad. Unfortunately, government performance is unsatisfying regarding the management of tobacco trading mechanism. This study aimed to determine and examine the regulation of the tobacco trade in Indonesia. This was a systematic qualitative research, using the analytical comparison to provide empirical generalizations. The study was based on previous research conducted in Sumenep, Pamekasan, Boyolali, Wonosobo, and Temanggung. The data were compared to review local government policies in regulating tobacco trading system both at the central and local government. The results showed that Indonesia does not have a standard regulation of tobacco trading system. The Farmers Protection Act does not significantly affect the prosperity of tobacco farmers. The law becomes meaningless, as there is a provision that foreign investors are prohibited from purchasing tobacco directly from farmers. Tobacco farmers are facing internal and external conditions simultaneously. At the lowest position of tobacco trading system chain, tobacco farmers are the most disadvantaged and exploited by tobacco industries. The government shall take actions to protect and empower tobacco farmers by promoting the implementation of any relevant laws