DOI: 10.36347/sjebm.2017.v04i09.002

Pages: 590-599

Chili is a strategic vegetable commodity in Indonesia, especially for the cayenne pepper and red chili pepper. One of the factors contributing to the price of chili increased year by year due to the high demand of chili which the Indonesian people love and become an identity as cuisine culture of spicy distinctive. In 2010, chili was one of the top three commodities causing inflation. The chili price usually spiked quite high toward the end the year of until the beginning of the year to reach more than Rp100,000.00/kg, while at a certain price can fall below Rp10,000.00/kg. The varied and random fluctuations of chili contribute to the high volatility of prices in the market, so the price of chili is difficult to predict. This is the reason for price volatility will be a concern in recent years.