<strong>English</strong><br />Red chili is one of the essential horticultural commodities because it is the main cooking spice for the Indonesian people. This paper discusses the integration of the red chili market in Indonesia using monthly price data for the period 2011-2016. Market integration is analyzed using Johansen cointegration models. The Engle-Granger (EG) causality test results show that producer prices and wholesale prices affect consumer prices, there is a one-way causal relationship. Therefore, the causality approach accepts the Law of One Price (LOP) hypothesis of red chili price. The results of the co-integration model show that the market for red chili is well integrated. Furthermore, variance decomposition analysis shows that Medan is the market leader for chili in Indonesia.<br /><br /><br /><strong>Indonesian</strong><br />Cabai merah adalah salah satu komoditas hortikultura yang penting karena merupakan bumbu masak utama bagi masyarakat Indonesia. Makalah ini membahas integrasi pasar cabai merah di Indonesia dengan menggunakan data harga bulanan periode 2011-2016. Integrasi pasar dianalisis dengan menggunakan Johansen kointegrasi model. Hasil uji kausalitas Engle-Granger (EG) menunjukkan bahwa harga produsen dan harga grosir mempengaruhi harga konsumen, ada hubungan kausal satu cara. Oleh karena itu, pendekatan kausalitas menerima hipotesis Hukum Satu Harga (LOP) komoditas cabai merah. Hasil dari model co-integration menunjukkan bahwa pasar cabai merah terintegrasi dengan baik. Selanjutnya, analisis variance decomposition menunjukkan bahwa Medan adalah pasar acuan (price leader) untuk harga cabai di indonesia.
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