Indonesian chili faces some problems in increasing production, added value, and competitiveness of chili products, mainly in terms of quantity, quality, and continuity. The objectives of this study are (1) to analyze the private and social profitability of chili farming, (2) to analyze the chili competitiveness from both competitive and comparative advantage perspectives, (3) to examine government policy impact on chili performance, and (4) to formulate strategies to encourage chili development in Indonesia. The results of the policy analysis matrix revealed that chili farming in Indonesia’s production centers is profitable, both privately and socially. It also has competitiveness, both competitive and comparative advantages. The highest competitiveness occurs in Bandung district, West Java, with a coefficient of private cost ratio (PCR) of 0.416 and a domestic resource cost ratio (DRCR) of 0.269. Meanwhile, the lowest competitiveness occurs in Tabalong district, South Kalimantan, with a PCR coefficient of 0.857 and a DRCR of 0.556. This study also concluded that for Indonesia, it is more profitable to increase domestic chili production than importing from abroad. Strategic policies for chili development can be implemented by using hybrid seeds, complete and balanced fertilization, improving irrigation infrastructure and farming roads, increasing the capacity of farmers’ resources, and expanding the objectives and market segments.

The policy effectiveness of food security enhancement and poverty alleviation will be determined by better understanding and adaptation of the global impact and policy response of food-fuel-financial (Triple F) crisis at national level. The analysis is based on the global impact and response of the respective crisis at regional level especially in developing countries, with the ultimate objective to strengthen food security and accelerate poverty alleviation in Indonesia The main output of the study are (a) Triple F crisis generate negative impact on global agricultural investment, food production, and food price stability; (b) At macro level in Indonesia, there is no impact of crisis on the production, availability, and consumption of main staple food, (c) Based on the decreasing rate of poverty of 2.20 percent per year , the poverty rate in 2015 estimated at 12.3 percent, a figure that far above the target of MDG 2015 of 7.2 percent; (d) Implicitly, the respective crisis generate negative impact on the availability and access to food for the household, indicated by the existence of food insecurity and decreasing rate and achievement of poverty alleviation as a target in 2 015. Future policy direction of national agricultural development should be directed to smallholder agricultural development with a perspective of growth and equity, by considering three policy options: (a) The enhancement of macro economic stability and the increasing of budget allocated to agricultural and rural infrastructure development; (b) Demand driven agricultural development, complemented with the improvement of marketing system and marketing efficiency; (c) The development of institutional innovation and incentive system to support the availability and access input factors and services for the benefit of small scale farmers. Key words: food-fuel-financial crisis, food security, poverty ABSTRAKEfektivitas kebijakan pemantapan ketahanan pangan dan pengentasan kemiskinan ditentukan oleh pemahaman dan adaptasi dampak dan kebijakan global krisis pangan-energi-finansial (PEF). Analisis didasarkan atas dampak global krisis PEF dan respons kebijakan regional, khususnya di negara berkembang dengan sasaran pemantapan perumusan kebijakan ketahanan pangan dan pengentasan kemiskinan. Temuan pokok kajian adalah (a) Krisis PEF berdampak terhadap