THE ROLE OF
DIGITAL TECHNOLOGY IN THE TRANSFORMATION OF AGRICULTURE TOWARD SMART FARMING
Harun Rasyid1, Gumoyo
Mumpuni Ningsih2�
Universitas Muhammadiyah Malang, East Java, Indonesia
�[email protected]1, [email protected]2
ABSTRACT
Agriculture
is one of the important sectors in the Indonesian economy. However, the
agricultural sector also faces various challenges, such as climate change,
limited land, and high production costs. One solution to overcome these
challenges is to utilize digital technology. The transformation of agriculture
towards smart farming is one effort to utilize digital technology in
agriculture. The aim of this research is to analyze the role of digital
technology in the transformation of agriculture towards smart farming. This
study used qualitative research methods. The data collection technique in this
research is a literature study with publication period criteria in the last 10
years, namely 2014-2024. The data obtained was then analyzed in three stages,
namely data reduction, data presentation and drawing conclusions. Research
results from 15 pieces of literature show that digital technology plays an
important role in the transformation of agriculture towards smart farming.
Digital technology can increase agricultural productivity, agricultural
operational efficiency and the competitiveness of agricultural products.
Digital technology can increase agricultural productivity by increasing the
efficiency of agricultural inputs and increasing agricultural productivity.
Meanwhile, the company's operational efficiency is through increasing the
effectiveness of communication and supply chain management. Meanwhile, product
competitiveness is carried out by improving product quality and increasing
product added value.
Keywords: Digital
Technology, Agricultural Transformation, Smart Farming.
Corresponding Author: Harun Rasyid
Email: [email protected]
INTRODUCTION
The agricultural sector is vital
to the national economy because it contributes a large part to the country's
Gross Domestic Product (GDP), is the primary source of export income, and
provides employment opportunities for millions of people (R�tolo
et al., 2022). Named the backbone of the
economy, the agricultural sector is the main focus for the country in
developing and prioritizing agriculture and the food security of the
population, especially in a social context, as a crucial element in human
development (Bukhtiarova et
al., 2019). Even though the agricultural
sector has a crucial role in providing food and creating jobs, it is not free
from various challenges that need to be faced (Kazekami, 2024). Factors such as climate change,
limited land, and high production costs are the main obstacles that need to be
overcome (Sitti
Arwati, 2018); one solution to overcome these
challenges is to utilize digital technology as a potential solution to overcome
these challenges.
Agricultural digital technology
refers to implementing information and communication technology through
devices, networks, services, and applications to assist actors in the
agricultural sector in decision-making and resource management (Abiri
et al., 2023). According to reports from
MercyCorps and Rabobank, 55 agricultural digital technologies are currently
present in Indonesia, and most of them are still in the early stages of
development (seed or early ventures). McKinsey data projects that adopting modern
technology in the agricultural sector could contribute an additional US$ 6.6
billion per year to economic output. For example, agricultural digital
technology such as TaniHub, which facilitates direct connections between
farmers and consumers, can reduce supply chain complexity and help farmers
reduce their dependence on intermediaries. Traditionally, farmers often sell
their agricultural products in large quantities to intermediaries, so they have
limited bargaining power to determine producer prices (Setiawan,
2021).
Utilizing digital technology in agriculture is one of
the efforts toward intelligent farming. Smart Farming is an agricultural system
that aims to increase efficiency and productivity in agricultural activities (Alwis et al., 2022). This concept mainly arises from applying digital
technology, agricultural mechanization, and digital-based marketing systems.
Smart Farming is not just about utilizing advanced technology but also
integrating this approach with various aspects of agriculture (Osrof et al., 2023). The main focus of this concept is to achieve high
effectiveness in agricultural production results. So, by utilizing technology
such as automatic rice planting equipment, modern land processing equipment,
and integrated rice harvesting equipment, agricultural production can be
optimized optimally in a shorter time (Azma, 2023).
Previous research (Rachmawati,
2020) shows that the main agenda for
smart Farming 4.0 is digital transformation in the agricultural sector and the
development and use of digital technology in the agricultural sector. To this
end, the government must design a strategy for developing national digital
infrastructure, attracting foreign investment, increasing human resources, and
building an innovation ecosystem. Designing incentives for technology
investment and harmonization of regulations is needed.
Other research (Simarmata,
2019) shows that the adoption of
smart farming and the involvement of young people in becoming millennial
farmers are the keys to the success of Indonesian agriculture in the future. By
utilizing information technology, the millennial/digital farmer generation can
easily access various technologies and innovations to (1) increase
productivity, add value, and increase the competitiveness of Indonesian
agricultural products and (2) utilize national, regional, and international
markets.
The novelty of this research
is that it examines the impact of adopting digital technology in agriculture on
society's social and economic life. Apart from that, identifying the benefits
and challenges in implementing smart farming from a social and economic
perspective. This research can help develop new theories related to intelligent
farming concepts and applications, enriching scientific literature. This research aims to analyze the role of digital
technology in transforming agriculture towards intelligent farming.
METHOD
This study used
qualitative research methods. Qualitative research methods are research
approaches that aim to understand phenomena or events in depth, complex and contextual.
Qualitative research focuses on the interpretation of meaning, social
construction, and the context in which the phenomenon occurs (Kusumastuti &
Khoiron, 2019). The data collection technique in this research is
literature study. Data collection techniques were carried out through searching
and utilizing literature sources related to the role of digital technology in
agricultural transformation. Literature sources include books, journal
articles, technical documents, and other relevant sources of information. The
data criteria used in this research are data sourced from trusted sources with
a publication period of the last 10 years, namely 2014-2024. The data obtained
was then analyzed in three stages, namely data reduction, data presentation and
drawing conclusions. This research procedure begins with creating a problem
formulation, then exploring journals and other information relevant to the
research, the data that has been collected is then analyzed using predetermined
criteria to obtain 15 journals used in this research, after that the manuscript
is prepared and conclusions are drawn.
RESULTS AND DISCUSSION
Along with advances in internet-based digital technology,
the agricultural sector faces significant challenges. The world has entered the
era of Industrial Revolution 4.0, which is supported by five leading
technologies, including the Internet of Things (IoT), artificial intelligence,
human-machine interface in driverless vehicles, robotics technology
(intelligent robotics), and 3D printing technology. As a sector with a crucial
role in ensuring food availability, the agricultural sector must adapt and optimize
internet-based digital technology. The future of agriculture is no longer
conventional. On the contrary, internet-based technology will play an essential
role in monitoring crop conditions, soil, weather, and even using tractors that
can be operated via smartphone (Lesmana, 2023).
Agricultural technology aims to increase labor
efficiency, increase land productivity, and reduce production costs. The
application of tools and machines in the production process aims to increase
efficiency, effectiveness, productivity, and quality of results and reduce
farmers' workload. Agricultural technology can be defined as the introduction
and utilization of various mechanical aids used in carrying out agricultural
operations (Rusydi & Rusli, 2022).
Digital technology opens up opportunities to increase
agricultural productivity through various strategies; one significant way is by
increasing the efficiency of using agricultural inputs. By utilizing digital
technology, farmers can be more focused on managing fertilizers, pesticides,
and water so they can optimize resource use and reduce waste. Apart from that,
digital technology also plays a vital role in increasing overall plant
productivity. Farmers can use appropriate cultivation technology, such as precision
irrigation systems, fertilization, and more accurate pest and disease control.
This technology allows farmers to provide optimal environmental conditions for
plants, optimize growth, and significantly increase crop yields (Siregar, 2023). Thus, digital technology helps in efficient resource
management and contributes to increasing crop productivity in the agricultural
sector.
Digital technology also has a crucial role in increasing
the efficiency of agricultural operations in several ways, one significant
aspect of which is increasing communication effectiveness. The use of digital
technology by farmers can enable them to communicate more efficiently with
various parties, including suppliers, buyers, and government agencies. This
smoother and faster communication allows for the exchange of more accurate and
timely information, helping farmers make better decisions and respond to
changing conditions more quickly (Putri et al., 2023). Apart from that, digital technology also plays a role
in increasing the efficiency of supply chain management. Farmers can utilize
this technology to manage supply chains more efficiently, reduce risks, and
reduce production costs (Tutuhatunewa et al.,
2015). Therefore, by monitoring and optimizing all processes
in the supply chain, from production to distribution, farmers can increase
their profits and achieve more efficient results. Thus, digital technology
improves communication and optimizes supply chain management in the
agricultural context.
Digital technology can also significantly contribute to
increasing the competitiveness of agricultural products by improving product
quality. Farmers can improve the quality of agricultural products by using
appropriate cultivation technology, such as harvesting systems carried out at
optimal times and effective post-harvest technology (Molenaar, 2020). In this way, agricultural products can meet higher
quality standards, increase market attractiveness, and compete effectively
locally and internationally. Digital technology also plays a role in increasing
the added value of agricultural products. Farmers can use this technology to
develop processed products with high added value. Using technology in the
processing process and adding value to agricultural products can create various
products with unique characteristics, expand markets, and increase product
competitiveness in an increasingly competitive market (Nurjati, 2021).
Adopting digital technology in the agricultural sector
broadly impacts society's social and economic lives. From a social perspective,
the use of digital technology changes how society interacts with the
agricultural sector. Easier access to agricultural information through digital
platforms expands people's knowledge of modern agriculture practices. This
increases public awareness about agricultural innovation and supports their
involvement in agricultural activities, both as consumers and in supporting
local farmers.
In the economic aspect, adopting digital technology has
had a positive impact, especially in increasing agricultural productivity (Cesco et al., 2023). Applying intelligent sensors, data analysis, and
automation devices allows farmers to increase operational efficiency and
optimize crop yields. Farmers' income and the local economy can increase with
this increase in productivity. In addition, new business opportunities in the
digital agricultural ecosystem, such as developing agricultural applications,
providing technology-based consulting services, and agricultural e-commerce,
can provide additional economic benefits for society (Siringo-Ringo, 2023).
The application of digital technology in intelligent
farming brings several significant benefits but also faces several challenges
that need to be overcome to ensure that these benefits can be felt evenly and
sustainably in society and the agricultural economy, including the following:
Benefits of Implementing Digital Technology in Smart Farming:
Social Perspective
1)
Education and Awareness
Applying digital technology in intelligent farming
can increase public education and awareness of modern agricultural practices.
More accessible information can provide a better understanding of agricultural
innovation.
2)
Society Participation
Digital technology enables active community
participation in agricultural activities. Through online platforms, people can
be involved in various aspects, including supporting local farmers or making
decisions related to agriculture.
Economic Perspective
1)
Increased Productivity
Digital technology can increase agricultural
productivity through process automation, crop monitoring, and data analysis.
This can result in higher agricultural yields and increase farmer income.
2)
New Business Opportunities
The application of digital technology creates new
business opportunities in the agricultural sector, such as agricultural
application development, technology-based consulting services, and agricultural
e-commerce. This can open new jobs and increase the sustainability of the local
economy.
Challenges of Implementing Digital Technology in Smart Farming:
Social Perspective
1)
Technology Gap
The main challenge is the community's gap in access
and understanding of technology. Some groups in society may experience
difficulties in adopting digital technologies, which can increase inequality.
2)
Changes in Workforce Structure
Increased automation and mechanization can impact
traditional workforce structures. Some traditional agricultural jobs may be
displaced, so efforts are needed to support workforce transition.
However, it needs to be acknowledged that adopting digital technology can
also have impacts that need to be considered. Increased mechanization and
automation may impact the structure of the workforce, with some traditional
jobs being replaced by technology. Therefore, it is essential to design
policies that support workforce transition, empower communities to access
digital technologies, and ensure that this adoption contributes to social
inclusiveness and economic empowerment of communities.
CONCLUSION
The role of digital technology is very
significant in changing the face of agriculture towards the concept of smart
farming. This transformation brings positive changes by increasing productivity
and operational efficiency in the agricultural sector, as well as strengthening
the competitiveness of agricultural products. Increasing agricultural
productivity is achieved using digital technology to increase the efficiency of
agricultural input use and overall production results. The operational
efficiency of agricultural companies is also improved through improved
communication and supply chain management by utilizing digital technology.
Apart from that, increasing the competitiveness of agricultural products occurs
by focusing on improving product quality and adding added value to these
products using technology. Thus, the implementation of digital technology not
only has an impact as innovation at the agricultural level, but also supports
crucial aspects such as productivity, efficiency, and competitiveness in the
agricultural industry as a whole. This reflects a shift towards smarter,
modern, and sustainable agriculture.
REFERENCES
Abiri, R., Rizan, N., Balasundram, S. K., Shahbazi, A. B.,
& Abdul-Hamid, H. (2023). Application of digital technologies for ensuring
agricultural productivity. Heliyon, 9(12), e22601.
https://doi.org/https://doi.org/10.1016/j.heliyon.2023.e22601
Alwis, S. De, Hou, Z., Zhang, Y., Na, M. H., Ofoghi, B.,
& Sajjanhar, A. (2022). A survey on smart farming data, applications and
techniques. Computers in Industry, 138, 103624.
https://doi.org/https://doi.org/10.1016/j.compind.2022.103624
Azma, M. K. (2023). Sistem Smart Farming, Eskalasikan
Pertanian dengan Teknologi. Www.Its.Ac.Id.
https://www.its.ac.id/news/2023/10/21/sistem-smart-farming-eskalasikan-pertanian-dengan-teknologi/#:~:text=Smart
Farming merupakan sistem pertanian pintar guna meningkatkan efisiensi serta
produktivitas pertanian
Bukhtiarova, A., Hayriyan, A., Chentsov, V., & Sokol, S.
(2019). Modeling the impact assessment of agricultural sector on economic
development as a basis for the country�s investment potential. Investment
Management & Financial Innovations, 16(3), 229. DOI:10.21511/imfi.16(3).2019.21
Cesco, S., Sambo, P., Borin, M., Basso, B., Orzes, G., &
Mazzetto, F. (2023). Smart agriculture and digital twins: Applications and
challenges in a vision of sustainability. European Journal of Agronomy, 146,
126809. https://doi.org/https://doi.org/10.1016/j.eja.2023.126809
Kazekami, S. (2024). Linkage, sectoral productivity, and
employment spread. Structural Change and Economic Dynamics, 69,
108�123. https://doi.org/https://doi.org/10.1016/j.strueco.2023.12.004
Kusumastuti, A., & Khoiron, A. M. (2019). Metode
penelitian kualitatif. Lembaga Pendidikan Sukarno Pressindo (LPSP).
Lesmana, D. (2023). Transformasi Sistem Penyuluhan Pertanian Era Digital. Pembangunan Pertanian Dan Peternakan Berkelanjutan, 236.
Molenaar, R. (2020). Panen dan pascapanen padi, jadung dan
kedelai. EUGENIA, 26(1).
Nurjati, E. (2021). Peran Dan Tantangan E-Commerce Sebagai
Media Akselerasi Manajemen Rantai Nilai Produk Pertanian. Forum Penelitian
Agro Ekonomi, 39(2), 105�115.
Osrof, H. Y., Tan, C. L., Angappa, G., Yeo, S. F., & Tan,
K. H. (2023). Adoption of smart farming technologies in field operations: A
systematic review and future research agenda. Technology in Society, 75,
102400. https://doi.org/https://doi.org/10.1016/j.techsoc.2023.102400
Putri, R. N., Rozaki, Z., Wulandari, R., & Suryani, C. A.
(2023). Aplikasi Petani Millenial Meningkatkan Produktivitas Bidang Pertanian:
Millennial Farmer App Improves Productivity in Agriculture. Proceedings
Universitas Muhammadiyah Yogyakarta Undergraduate Conference, 3(2),
212�218.
Rachmawati, R. R. (2020). Smart Farming 4.0 Untuk Mewujudkan
Pertanian Indonesia Maju, Mandiri, Dan Modern. Forum Penelitian Agro Ekonomi,
38(2), 137�154.
R�tolo, G. C., Vassillo, C., Rodriguez, A. A., Magnano, L.,
Milo Vaccaro, M., Civit, B. M., Covacevich, M. S., Arena, A. P., & Ulgiati,
S. (2022). Perception and awareness of circular economy options within sectors
related to agriculture in Argentina. Journal of Cleaner Production, 373,
133805. https://doi.org/https://doi.org/10.1016/j.jclepro.2022.133805
Rusydi, B. U., & Rusli, M. (2022). Pemanfaatan Teknologi
Pertanian dan Pengaruhnya Terhadap Pendapatan Petani. ICOR: Journal of
Regional Economics, 3(1), 42�52.
Setiawan, I. (2021). Pemanfaatan Digital di Pertanian.
Www.Cips-Indonesia.Org.
https://www.cips-indonesia.org/post/opini-pemanfaatan-digital-di-pertanian?lang=id
Simarmata, T. (2019). Percepatan transformasi teknologi dan
inovasi dalam era smart farming dan petani milenial untuk meningkatkan
produktivitas, nilai tambah dan daya saing pertanian Indonesia. Makalah Pada
Rangkaian Seminar/Kuliah Umum Tanggal, 19.
Siregar, M. A. R. (2023). Peningkatan Produktivitas
Tanaman Padi Melalui Penerapan Teknologi Pertanian Terkini.
Siringo-ringo, M. M. (2023). Peran Sektor Teknologi dalam
Mendorong Inovasi dan Pertumbuhan Ekonomi di Tahun 2023. Circle Archive,
1(2).
Sitti Arwati, S. P. (2018). Pengantar Ilmu Pertanian
Berkelanjutan. Penerbit Inti Mediatama.
Tutuhatunewa, A., Surachman, P. B., & Santoso, I. (2015).
Peran teknologi informasi dalam meningkatkan keunggulan kompetitif rantai pasok
agroindustri olahan apel di Kota Batu. Seminar Nasional �Inovasi Dalam
Desain Dan Teknologi,� 76�84.
�
2024 by the authors. It was submitted for possible open-access publication
under the terms and conditions of the Creative Commons Attribution (CC BY SA) license (https://creativecommons.org/licenses/by-sa/4.0/). |