This study was conducted to inform pro-poor interventions in the chilli value chain under a new DFAT program: the Australia-Indonesia Partnership for Decentralisation - Rural Economic Program, or AIPD-Rural. A wide range of issues deemed important for characterisation of the chilli sub-sector in Indonesia are covered. There is a particular focus on understanding the potential of the chilli sub-sector as a vehicle for poverty reduction in the AIPD-Rural target district of Malang in East Java.
As the main vegetable crop in Indonesia, the harvested area of chilli ranges between 230,000 ha to 245,000 ha annually. Given the small average size of chilli farms, it could be conservatively estimated that at least half a million households grow chilli in Indonesia. As in the case of other highly perishable crops, production is concentrated near the main consumption centres (over 50% of domestic production comes from Java).