UNVEILING EFFICIENCY CHALLENGES IN WEST JAVA'S CHILI PRODUCTION: A PATHWAY TO ENHANCING INDONESIA'S FOOD SECURITY
Abstract
Chili is a cornerstone of Indonesian cuisine, playing a pivotal role in the nation's food
security. However, the chili production sector in West Java, a key hub for chili
cultivation, faces significant challenges due to price volatility stemming from
production inefficiencies. This study examines the technical inefficiencies prevalent
in chili production in West Java and how they are influenced by farmers' socioeconomic characteristics and access to financial resources. A random sample of 398
farmers from four major chili-producing districts underwent analysis using
multinomial logistic regression and one-way ANOVA. The findings indicate that 83%
of chili farmers are efficient in running their farms. With an average technical
inefficiency of 25%, there is potential to double chili production using existing
resources and technologies. It is important to note that several factors were identified
as influencing inefficiency, such as age, education level, household size,
participation in training, farm record keeping, land tenure, land size, and crop
productivity. It is interesting to note that farmers who have access to one financial
provider have lower levels of inefficiency, with MFIs being the provider with the
lowest average inefficiency among other providers. This study provides valuable
insights for overcoming production bottlenecks and stabilizing chili prices, thereby
improving Indonesia's food security. By understanding and addressing these
inefficiencies, stakeholders can work to increase productivity, improve farmers'
livelihoods, and ensure a stable supply of this essential ingredient for Indonesian
cuisine.
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