The Correlation Between Chili Price Changes and the High Level of Chili Enthusiasts in Indonesia

Abstract

This article aims to determine the impact of rising chili prices on demand in Indonesia, the method used in this research is quantitative based on case studies contained in journal reviews. The results show that the price of chili alone affects demand. Other factors that affect chili demand are income level and number of family members. This price change is caused by the chili planting time which is strongly influenced by the weather, the price of large red chili and curly red chili is relatively stable. Possible policy recommendations are for the government to encourage off-season chili cultivation, regulate chili cultivation, and develop farmer-industry partnerships. In addition, it also encourages the growth of all chili production centers in areas that are still short of chilies such as outside the island of Java, and facilitates all infrastructure suitable for distribution activities. What the Indonesian people expect is that food prices remain stable. However, chili is one of the foodstuffs whose prices tend to fluctuate, in this article we will discuss the causes and factors that make chili prices change.