Key insights and market outlook
The Indonesian government has purchased 40 tons of chili peppers from farmers in Aceh Tengah and Bener Meriah regencies to stabilize prices amid recent natural disasters. 15 tons were airlifted to Jakarta using a TNI Air Force Hercules aircraft to boost supply at Pasar Induk. The government aims to reduce prices from Rp 100,000/kg to Rp 41,000/kg through this intervention 1
The Indonesian government has taken decisive action to address the recent surge in chili prices by purchasing 40 tons of chili peppers from farmers in Aceh Tengah and Bener Meriah regencies. This emergency measure aims to support farmers affected by natural disasters while simultaneously stabilizing market prices 1
In a coordinated effort, 15 tons of chili peppers were airlifted to Jakarta using a TNI (Indonesian National Armed Forces) Air Force Hercules aircraft. The shipment was transported from Rembele Airport to Halim Perdanakusumah Airport, demonstrating the government's logistical capabilities in managing food supply chains during crises 1
The purchase price from farmers in Aceh was approximately Rp 21,000/kg, with plans to sell at Pasar Induk Jakarta at around Rp 41,000/kg. According to Sarwo Edi, Secretary General of the National Food Agency (Badan Pangan Nasional), this intervention is expected to help reduce the current market price of chili peppers, which has soared to Rp 100,000/kg for red cayenne pepper 2
The government's intervention is designed to achieve multiple objectives: supporting farmers by ensuring market absorption of their produce, stabilizing consumer prices, and demonstrating effective crisis management in the agricultural sector. While the immediate target is to bring prices down to Rp 41,000/kg at Pasar Induk Jakarta, the broader goal is to achieve a more sustainable price level of Rp 55,000/kg in other markets 2
Government Intervention in Chili Market
Emergency Purchase of Chili Peppers
Price Stabilization Efforts