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5. West Sumatra , , , , , 8,260 , 7,835

Production Centers

North Sumatra and West Sumatra, with 62.5% total share of national production. West Java is the most producing province with 192.3 thousand ton per year.

Sources:Department of Agriculture

increased 34.2% from the previous year, while domestic consumption in 2004 and 2005 decreased, minus 3.9% and minus 4.5%.

Indonesia chilli production centers are scattered in 10 provinces. 5 provinces with the highest productions are West Java, East Java, Central Java,

Followed by East Java and Central Java with 166.6 thousand ton and 109.7 ton, respectively.

Chilli production in those 5 provinces increased except for West Java that decreased as much as minus 17.1% in 2004.

However, in the following years, it seems that chilli production has reached its limit. Growth of chilli production in year 2004 is negative 3.7%, followed

Farmer's expense is larger than their income, causing them to be reluctant to invest more in this product. This has induced FTTdrop.

Domestic consumption for this product is dominated by non-householders, probably food industry.

Overall, domestic consumption increased as much as 8.9% in average. The highest consumption was in 2003 which was 189.2 thousand ton, Compared to world production, share of Indonesia chilli production is only 3.7%, relatively small, because Indonesia is not a potential chilli producer.

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by minus 3.5% in year 2005. Drop of chilli production in year 2004-2005 was related closely with Farmer's Terms of Trade(FTT), where FTT in production centers in West, Central and East Java kept declining until it reached negative value.

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increased as much as 40.5% from the previous year which was only 94.0 thousand ton. This proportion is the same with chilli production growth inyear 2003. Growth of chilli production during 2001-2002 was 8.6% and increased drastically to 40.5% in year 2003. That was the climax of Indonesian chilli industry in the last 5 years. The trigger was high domestic demand, especially non-households and food industry. Demand of non-households was 157.9 thousand ton,

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142,556 , 176,264 , 165,347

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Opportunity for Investment

2005

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2001 2002 2003 2004

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Referensi

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