Heat the vegetable oil in a large pan over medium heat.
Add the shallots, garlic, ginger, and lemongrass. Sauté until fragrant and the shallots turn translucent.
Add the chopped chili peppers and continue to stir-fry for a few minutes.
Add the pork pieces to the pan and cook until they are browned on all sides.
Season with salt, sugar, and chicken powder (if using). Stir well to evenly coat the pork.
Pour in the water and bring the mixture to a boil. Reduce the heat, cover the pan, and let it simmer for about 45 minutes or until the pork is tender and the flavors have melded together.
Once the pork is cooked, remove the lid and let any excess liquid evaporate, allowing the sauce to thicken.
Serve the Babi Rica-rica hot with steamed rice. Garnish with lime wedges and fresh cilantro, if desired.
