At the start of a research project on the improvement of sweet pepper (Capsicum annuum) cultivation in plastic houses in Indonesia, an inventory of the present cultivation methods and constraints was made, together with an analysis of production costs and benefits. The inventory was carried out in the highlands around Bandung, the capital of West Java Province, Indonesia. A purposive method was used to select three large and fourteen small sweet pepper growers, for an interview about their present cultivation methods and conditions. Data on the costs and benefits of sweet pepper production were obtained from eight growers. The total number of plants cultivated per grower mostly was between 5,000 and 10,000 plants. `Spartacus¿ and `Edison¿ were the sweet pepper varieties most frequently cultivated. Commonly a plant density of three or four plants per m2 was used. Yield per plant ranged from 1.0 to 3.0 kg per plant. Thrips was considered the most important pest to control. Pest and disease control, the quality of the material and the construction of the plastic houses and the availability of capital and labour were ranked as major constraints in the production of sweet pepper. Revenue costs ratios observed were 2.12 and 2.03 for a drip irrigated crop and a manually irrigated crop respectively. The results of the inventory and the financial analysis were discussed with growers, suppliers and research staff in a participatory workshop. Implications for research priorities were formulated.