Rising Pepper Export Trends: An Analysis

      Exportation of black pepper, both whole and ground, has seen a significant increase in the first quarter of 2022. According to data from the Ministry of Trade, the value of black pepper exports reached USD 17 million, marking a 44.05% increase compared to the same period last year. Additionally, the export volume also rose to 4.85 thousand tons, up by 10.16% year on year (yoy).

      This growth continues from the previous year’s trend. In the January-March 2021 period, the value of black pepper exports was USD 11.80 million, reflecting a 48.8% yoy increase, with a volume rise of 29.34% yoy, reaching 4.40 thousand tons. For the first quarter of 2022, the export of whole black pepper increased by 40.47% yoy to USD 15.64 million, compared to USD 11.12 million in the same period of 2021. Meanwhile, ground black pepper exports saw an even greater increase of 103.78% yoy, reaching USD 1.36 million, up from USD 0.67 million in January-March 2021.

       Rini Satriani, Head of the Indonesia Eximbank (IEB) Institute LPEI Division, explained that the rise in global demand for black pepper is driven by the global economic recovery following the COVID-19 pandemic. Additionally, Indonesia’s competitive advantage in the global black pepper market supports the growth in exports. “The increase in demand for spice products, including black pepper, is supported by the global economic recovery and the use of black pepper in the food and beverage industry,” said Rini.

    Black pepper is a crucial commodity in Indonesia's plantation sector, significantly contributing to the country's economic growth. It generates foreign exchange earnings, boosts farmers' incomes, and provides job opportunities.

      In support of black pepper export growth, the Indonesian Export Financing Agency (LPEI) has been actively involved through the Black Pepper Village Foreign Exchange Program, offering consultancy and assistance.

      According to data from 2020, Lampung Province is the leading contributor to Indonesia's black pepper exports, accounting for approximately 58.33% of the total export value. Recognizing the potential in this region, LPEI is implementing the Black Pepper Cluster Foreign Exchange Village Program in collaboration with the Ministry of Industry to enhance exporters' capabilities in Lampung Province.

This increase in black pepper exports indicates that Indonesia’s plantation sector is becoming more competitive in the international market, thanks to strategic efforts and support from various stakeholders.