Capsicum and pimenta fruits market in Indonesia

Earlier Report Observations

From 2018 to 2023, Indonesia's fresh capsicum production increased from 2.5 million tonnes to over 3 million tonnes, despite periodic challenges. The initial growth in 2018-2019 was supported by steady consumer demand and government buffer-stock policies aimed at stabilizing supply. In 2020, the COVID-19 pandemic disrupted supply chains, but rising demand from the food processing industry for dried and powdered capsicum, coupled with the introduction of reference price regulations to control the market, contributed to higher production volumes.

Production briefly dipped in 2021 due to outbreaks of anthracnose disease, which damaged harvests. However, it rebounded in 2022, reaching new highs thanks to government market operations and diversification of capsicum use, including promotion of processed products. By 2023, distribution programs by the National Food Agency (NFA) and preparations for new labeling rules helped maintain market volume at 3,061 thousand tonnes.

In the following years, regulatory changes such as the implementation of contamination limits for fresh produce and labeling requirements in 2024, along with continued price stabilization programs, shaped the operating environment for capsicum producers. Global factors including inflation and raw material prices also influenced production costs.

Production capsicum and pimenta fruits in Indonesia

In kind, 2018-2021, K t

From 2018 to 2021, Indonesia maintained the 5th position globally in terms of capsicum and pimenta fruit production volume.

Top producers of capsicum and pimenta fruits, 2018-2021

World map of production of capsicum and pimenta fruits, 2018-2021

Following two years of growth, capsicum and pimenta fruit production in Indonesia declined. In 2021, production reached 2 747 K t, marking a 0.9% decrease compared to 2020. Over the 2018-2021 period, overall production increased by 8.1%, with a compound annual growth rate of 2.6%. The highest production level was recorded in 2020 at 2 773 K t, which also saw the largest annual increase of 7.1%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

Exports capsicum and pimenta fruits from Indonesia

Exports in kind, t

The market experienced significant fluctuations during this period. From 2018 to 2020, export volumes varied by a factor of 2.8 between their lowest and highest points. In 2021, Indonesia's cross-border shipments of capsicum and pimenta fruits totaled 246.8 t, representing a 41.1% year-over-year decline. The peak export volume occurred in 2020 at 419.0 t, which also recorded the largest annual increase of 168.0%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, t

Between 2018 and 2021, Singapore (30.3% of exports by volume), Malaysia (24.9%), and Saudi Arabia (17.2%) collectively accounted for 72.5% of Indonesia's total capsicum and pimenta fruit exports, establishing them as the primary destinations.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, K $ US

The market displayed an unstable trend throughout the period. Export values reached their lowest point in 2019 and peaked in 2020, showing a 2.1-fold difference between these years. In 2021, Indonesia exported capsicum and pimenta fruits worth 559.7 K USD, reflecting a 16.4% decrease from the previous year. The minimum value was recorded in 2019 at 316.3 K USD, while the maximum occurred in 2020 at 669.6 K USD. The largest decline of 18.4% took place in 2019, whereas 2020 saw the most substantial increase of 111.7%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, K $ US

Throughout 2018-2021, Singapore (29.7% of export value), Saudi Arabia (25.6%), and Japan (25.0%) formed the core group of trading partners for Indonesia's capsicum and pimenta fruit exports, collectively representing 80.3% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports capsicum and pimenta fruits to Indonesia

Imports in kind, t

Market behavior was characterized by volatility during these years. Import volumes peaked in 2019 and reached their lowest point in 2020, with a 352-fold difference between these years. In 2021, Indonesia's imports of capsicum and pimenta fruits stood at 0.0 t, representing a 516.7% year-over-year increase. The minimum value was recorded in 2020 at 0.0 t, while the maximum occurred in 2019 at 2.1 t. The largest decline of 99.7% took place in 2020, whereas 2019 saw the most substantial increase of 1 660.0%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, t

From 2018 to 2021, China was the primary source of capsicum and pimenta fruit imports to Indonesia, accounting for 92.7% of total import volume.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Import values peaked in 2019 and fell to their lowest point in 2020, showing a 114-fold fluctuation. In 2021, Indonesia's imports of capsicum and pimenta fruits totaled 0.2 K USD, representing a 381.1% increase compared to 2020. The minimum value was recorded in 2020 at 0.0 K USD, while the maximum occurred in 2019 at 4.2 K USD. The largest decline of 99.1% took place in 2020, whereas 2019 saw the most substantial increase of 701.5%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, K $ US

Between 2018 and 2021, China remained the leading supplier of capsicum and pimenta fruits to Indonesia, accounting for 81.7% of total import value, with the remainder distributed among various other countries.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021