Pepper market in Indonesia

Earlier Report Observations

Between 2018 and 2023, the Indonesian pepper market showed significant volume fluctuations. The domestic market size contracted from 42 179 tons in 2018 to 28 308 tons in 2020, a period marked by strong export performance and competitive global market conditions that diverted supply abroad. A sharp reversal occurred in 2021, with the market expanding to 45 896 tons, largely due to a pronounced drop in export volumes, particularly for white pepper from the Bangka Belitung region.

Production challenges became a central theme in the latter part of the period. In 2022, national pepper output fell substantially following widespread pest attacks and unfavorable weather, which limited domestic availability. During this time, the Ministry of Trade issued Regulation No. 18 of 2022 to govern pepper trade, aiming to formalize market and export operations. Concurrent industry efforts focused on developing improved varieties like Malonan 1 and promoting Good Agricultural Practices to bolster long-term crop quality and sustainability.

By 2023, the market volume had decreased to 40 911 tons, continuing the downward trend in national production. The broader period saw ongoing initiatives, including the adoption of Geographical Indication certificates for specific pepper origins, to enhance the product's value and competitiveness on the international stage.

Production pepper in Indonesia

In kind, 2018-2021, t

From 2018 to 2021, Indonesia held the fourth position globally in pepper production.

Top producers of pepper, 2018-2021

World map of production of pepper, 2018-2021

Indonesia's pepper production declined for the third year in a row. In 2021, the country produced 83 316 tonnes of pepper, marking a 3.2% decrease compared to the previous year. Between 2018 and 2021, production fell by 6.3%, which translates to an annualized decline of 2.2%.

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

Exports pepper from Indonesia

Exports in kind, t

After increasing for two years, Indonesia's pepper exports dropped. In 2021, exports totaled 37 738 tonnes, showing a sharp contraction of 35.4% from 2020. Over the 2018-2021 period, exports decreased by 20.7%, with a compound annual growth rate (CAGR) of -7.5%. The highest export volume was recorded in 2020 at 58 378 tonnes, which also saw the largest increase of 12.8%.

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

From 2018 to 2021, Vietnam, China, and India consistently led as the top destinations for Indonesia's pepper exports by volume. Vietnam accounted for 37.9% of exports, China for 12.3%, and India for 11.3%, together making up 61.5% of total export flows.

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, M $ US

Indonesia's pepper exports in value terms rose for the second consecutive year. In 2021, exports reached 166.8 million US dollars, reflecting a modest year-on-year gain of 4.0%. Between 2018 and 2021, export value increased by 9.4%, equivalent to an annualized growth rate of 3.0%. The lowest value was recorded in 2019 at 147.3 million US dollars, which also experienced the largest decline of 3.4%. In contrast, 2020 saw the largest increase of 8.9%.

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

Throughout 2018 to 2021, Vietnam, the United States, and India formed the core of Indonesia's pepper exports by value. Vietnam contributed 29.1% of export value, the United States 12.5%, and India 12.0%, collectively accounting for 53.6% of total export flows.

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

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

Imports pepper to Indonesia

Imports in kind, t

Indonesia's pepper imports fell for the third year in a row. In 2021, the country imported 319 tonnes of pepper, representing a steep year-on-year decrease of 47.2%. Over the 2018-2021 period, imports dropped by 62.2%, with a compound annual growth rate (CAGR) of -27.7%.

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

From 2018 to 2021, Vietnam, Uganda, and South Korea remained the primary sources for Indonesia's pepper imports by volume. Vietnam supplied 41.5% of imports, Uganda 7.9%, and South Korea 6.5%, together comprising 55.9% of total import flows.

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, M $ US

Indonesia's pepper imports in value terms declined for the third consecutive year. In 2021, imports amounted to approximately 1.5 million US dollars, indicating a robust decrease of 23.2% from 2020. Over the 2018-2021 period, import value fell by 58.8%, with a compound annual growth rate (CAGR) of -25.6%.

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

Over 2018 to 2021, Vietnam, India, and South Korea were the leading sources for Indonesia's pepper imports by value. Vietnam accounted for 37.6% of import value, India for 7.8%, and South Korea for 6.1%, with a combined share of 51.4% of total import flows.

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

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