Vertical Integration of the Bird's Eye Chili Market (E&G Approach) in East Nusa Tenggara Province, Indonesia

Key issues in the agricultural sector of East Nusa Tenggara include a lack of coordination within the value chain, resulting in production often being misaligned with market demand and offering minimal incentives for stakeholders to enhance value-added activities. This diminishes the motivation of agricultural sector players to engage in continuous production. Among the agricultural subsectors playing a strategic role in the economy of East Nusa Tenggara, the food crop and horticulture subsector—specifically the chili commodity (*Capsicum annuum* L.)—stands out, as it frequently experiences price fluctuations, particularly in the province's traditional markets. As of September 2025 (year-on-year), East Nusa Tenggara recorded the highest inflation rate among all Indonesian provinces, reaching 8.55 percent. The primary driver of this inflation was the rising price of chili peppers in the province's markets. This study seeks to answer the following questions: 1) what are the supply and value chains for horticultural commodities in East Nusa Tenggara Province; and 2) what is the position of East Nusa Tenggara Province's horticultural commodities in the context of inter-island trade.