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[BUSINESS] · Indonesia · 2 sources

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Chili prices surge in Makassar and Manado amid supply shortages

Chili prices are surging across several Indonesian regions, prompting intervention from Regional Inflation Control Teams (TPID) and Bank Indonesia to stabilize supply and manage inflation.

In Makassar, South Sulawesi, the price of bird's eye chili has risen from approximately Rp50,000 per kilogram to between Rp70,000 and Rp85,000 per kilogram. Local authorities, including the South Sulawesi Provincial Government and Bank Indonesia, are monitoring distribution and conducting market operations to mitigate the impact. Officials attribute the shortage to prolonged dry weather, which has reduced production at the farm level.

Similarly, in Manado, North Sulawesi, chili prices have experienced extreme volatility, at times exceeding Rp150,000 per kilogram compared to a normal price of Rp25,000. The crisis, exacerbated by El Nino weather patterns, has forced Bank Indonesia to facilitate the movement of chili supplies from other regions, such as Probolinggo, to meet local demand and control regional inflation rates.

Entities

Bank Indonesia · Makassar · Manado · Sulawesi Selatan Regional Inflation Control Team