Abstract: Indonesian people is the biggest consumer of spice, especially, birds-eye chili pepper. Therefore, birds-eye chili turned out as one of the strategic commodity of Indonesia. As the second biggest chili and birds-eye chili producer after China, Indonesian economic inflation is significantly influenced by birds-eye chili commodity. Birds-eye chili market price highly fluctuates from 500-100.000 IDR/kg. Its contribution to country inflation was 0.35% from 3.02% in 2016. Birds-eye chili has high potential as anexport commodity with 3.41 kg/year per capita production and 1.26 kg/year per capita consumption. The efforts to solve birds-eye chiliprice fluctuations are to increase the supply by improving birds-eye chili production by optimizing birds-eye chili cultivation in all seasons. The regulation about birds-eye chili market price is highly required to help increasing economy. It is also required to improve crop land for birds-eye chili, not only for massive production but also for home production. Birds-eye chili can be imported to fulfill market needs either. Thus, for balancing the economic rate of birds-eye chili, it is required to to build the reliable and sustainable partnership between farmers, government, distributors and other parties. This improvement is expected to increase the production and distribution process to all area which can increase the birds-eye chili economical value.
Ria Indriani Natsir, Rahim Darma, Yunus Musa and Nixia Tenriawaru, 2018. Economic Phenomenon of Birds-Eye Chili Pepper (Capsicum annum) as Strategic Commodity in Indonesia. Research Journal of Applied Sciences, 13: 189-194.