The research laboratory of Bogor, West Java stated that the spiciness level of cabe hiyung (hiyung chilli) planted in the wetland (swamp) of Hiyung Village is 17 times higher than the usual chilli. In addition, it is nonperishable (hotness 802.95 ppm) and contains vitamin A (11836.42 IU/100 g), C (763.52 ppm), as well as high enough protein (5.83%). The Ministry of Agriculture mentioned cabe hiyung as the best variety in Indonesia. In June 2012, cabe hiyung had been patented as the Indonesia's hottest chilli and the national best variety by the Ministry of Agriculture of the Republic of Indonesia. In the last few years this commodity is one of the commodity contributors to inflation in Indonesia. Based on the data and the potential it is necessary to know how the readiness of competitiveness or superiority, either competitive or comparative. The purpose of this study was to analyze the readiness of competitiveness and the development potential of this commodity in Tapin District. The competitiveness indicator was obtained through Policy Analysis Matrix (PAM). PAM is an analytical tool used to determine the economic efficiency and the amount of incentive or the wholly and systematically intervention impact of various farming activities. The competitiveness was analyzed based on the criteria of Private Cost Ratio (PCR) and Domestic Resource Cost Ratio (DRCR). Agribusiness of cabe hiyung had competitive as well as comparative advantages and was considered to be able to finance its domestic input. The competitiveness was still high, despite there were fluctuations or changes on input and output prices. Keywords: cabe hiyung, competitive, policy analysis matrix