International Journal of Scientific Research and Engineering Development-– Volume 4 Issue 2, Mar- Apr 2021 Available at www.ijsred.com ISSN : 2581-7175 ©IJSRED:All Rights are Reserved Page 7 The Role of Government and Empowerment of Farmers to Improve the Performance of Chili Farming Business I Wayan Wijana*, Made Kembar Sri Budhi** *(Student of Economics Doctoral Program, Faculty of Economics and Business, UdayanaUniversity, Indonesia) ** (Professor of Faculty of Economics and Business, UdayanaUniversity, Indonesia) ----------------------------------------************************---------------------------------- Abstract: Chili is one of the vegetable commodities which has quite high economic value, because of its large enough role to meet domestic needs, as an export commodity and the food industry. The purpose of this study was to examine the relationship between the role of government and farmer empowerment and farmer business performance, as well as the relationship between farmer empowerment in improving the business performance of chili farmers in Bali. This study uses a descriptive exploratory approach. The results of the study conclude that the government plays an important role in agricultural development in Indonesia, in addition to other inherent roles, both the regulatory role, the facilitator role and the supervisory role. If farmers can improve their performance, it is necessary to empower farmers. Farmers are said to have good performance when related and meet certain standards. From this model, the motivation and ability factors are important factors in determining the performance of chili farmers. Keywords —government role, farmer empowerment, farm performance, chili commodity. ----------------------------------------************************---------------------------------- I. INTRODUCTION Agricultural development in an area is not only aimed at increasing production, but also leads to an increase in community income, expansion of employment opportunities, increasing the standard of living of farmers and increasing welfare. The ability of the agricultural sector to contribute directly to economic growth and welfare of farmer households depends on the level of farm income and the surplus generated by the sector itself. Thus, the level of farm income, besides being the main determinant of the welfare of the farmer household, also appears as one of the important factors that condition economic growth [1]. Bali Province is part of the territory of Indonesia which has a large area for conducting agricultural business. The agricultural sector plays an important role in the economy of the Balinese people, one of which is as the second largest contributor to Bali's Gross Regional Domestic Income (PDRB) [2]. The agricultural sector is one of the bases that are highly expected to support economic growth both at present and in the future. Agricultural activities, especially in the field of horticulture, which include flowers, fruit and vegetables, have attracted the attention of various groups. Besides, it can be used as a livelihood that generates profits. Chili is an important vegetable commodity, the fruit is known as a flavoring ingredient and a complement to various Indonesian specialties. The need for chilies from day to day is increasing with the variety of types and menus that use this product [3]. Chili (Capsicum annuum L) is one of the vegetable commodities that has a fairly high economic value, because of its large enough role to meet domestic needs. The various efforts made by the government to increase chili production and to excite chili farmers aimed at farmers' welfare have not been optimal. The problem of falling chili prices every major harvest and the scarcity of chilies in the market as RESEARCH ARTICLE OPEN ACCESS