Fresh Chili Agribusiness: Opportunities and Problems in Indonesia

The National Socioeconomic Survey (SUSENAS) conducted in Indonesia in September 2021 found that the average consumption of red chili per month was 0.15 kilograms (kg) per capita per month. The average consumption of fresh chili per month is 40.90 thousand tons, and the cumulative total reached 490.83 thousand tons in 2021. Uneven chili production across time and region makes prices fluctuate, which affects inflation by 0.01–0.07%. Another problem is the imbalance of supply and demand between time and region, which impacts farmers’ welfare. Setting planting time and location and improving distribution can solve these problems. The application of technology that can extend the life of fresh chilies for one month is a solution for chili distribution from farmers to areas with high demand. One-wave roasting and drying technology can extend chilies’ freshness for six months. By producing chilies that have a shelf life of more than three months, it is possible to store them in warehouses using the warehouse receipt system. The application of the warehouse receipt system to chili commodities is also an alternative to solving postharvest problems. The distribution and application of technology that can extend the life of chili can increase its economic value and make chili not a commodity that contributes to Indonesian inflation