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Smart Farming for Indonesia’s Innovation and Infrastructure, seeks to strengthen the

Sustainable Agriculture pillars of economic growth and competitiveness,


ABSTRACT complement and utilize ICT infrastructure, improve
science and technology capabilities and create
1. Introduction innovation, and implement low-carbon development.
Sustainable development is an act of Climate change, SDGs number 13 increases disaster
fulfilling the needs of the present generation without and climate resilience through a meeting between
compromising future generations. To make it happen, disaster risk reduction and climate change adaptation,
in 2015 global priorities and aspirations for 2030 were low carbon development is also carried out by
set in the form of Sustainable Development Goals reducing emissions and emission intensity in priority
(SDGs). SDGs is a development while maintaining the areas. SDGs 15, life on land seeks to restore pollution
economic welfare of the community in a sustainable of natural resources and the environment, reduce the
manner, maintaining the sustainability of the social rate of deforestation, and reduce the rate of forest
life of the community, maintaining the quality of the degradation (Jahroh, 2022).
environment, as well as ensuring justice and Climate change has an impact on all countries
governance in order to improve the quality of life of in the world. The increase in greenhouse gases is
present and future generations. The SDGs are a currently at a 50% higher level than in 1990. This
commitment to complete the MDGs that are more increase will result in prolonged changes in the climate
comprehensive and involve many countries, expand system, so that climate change is one of the 17 SDGs
funding sources, emphasize human rights, and involve goals on the 2030 sustainable development agenda.
various parties as a whole starting from community Climate disturbances and COVID-19 have
organizations, business actors, to academics. caused world supply chains to occur, one of which is
The SDGs are global and national in the production of agricultural products. With an
commitments that contain 17 goals, including (1) No increasing population and followed by an increase in
Poverty; (2) No Hunger; (3) Healthy and Prosperous food demand, it encourages humans to create
Life; (4) Quality Education; (5) Gender Equality; (6) innovative technologies to create sustainable
Clean Water and Proper Sanitation; (7) Clean and agriculture. Sustainable agriculture aims to meet
Affordable Energy; (8) Decent Work and Economic human needs while preserving resources, being
Growth; (9) Industry, Innovation and Infrastructure; socially supportive, commercially competitive, and
(10) Reducing Gaps; (11) Sustainable Cities and environmentally friendly so as not to sacrifice the lives
Settlements; (12) Responsible Consumption and of future generations. In creating sustainable
Production; (13) Climate Change Management; (14) agriculture, smart farming technology is needed that is
Ocean Ecosystems; (15) Land Ecosystems; (16) socially acceptable, provides benefits, and benefits the
Peace, Justice and Strong Institutions; (17) Partnership environment.
to Achieve Goals. The agricultural revolution 4.0 uses the smart
Indonesia has reached 49 of the 67 MDGs farming precision agriculture method which is divided
indicators, but there are still indicators that must be into smart farming and precision agriculture. Smart
continued in the implementation of the SDGs such as farming is the collection of agricultural information
the national poverty rate, minimum consumption, data that is connected to the platform through devices
maternal mortality, HIV/AIDS prevention, to clean placed on agricultural land. While precision
water and sanitation. The achievement of the SDGs agriculture is the use of agricultural inputs (pesticides,
target is a priority of national development which fertilizers, etc.) based on data that has been received
requires the synergy of planning policies from various with the right amount, location, and time so that there
levels. The SDGs targets are in line with the 2015- are no dose errors. Smart farming helps farmers
2019 RPJMN (National Medium-Term Development improve the quality and effectiveness of agricultural
Plan) with various programs, activities, measured production, record agricultural systems, and maintain
indicators, to indications of financing support. soil health and sustainability.
Based on the 2020-2024 RPJMN, in SDG The various benefits generated by smart
number 1, namely no poverty, one of the farming are opportunities for Indonesia to increase the
macroeconomic policies being pursued is to increase quantity, quality and effectiveness of agricultural
the productivity of the agricultural sector. Meanwhile, production while preserving the environment. This
SDGs number 2, which is no hungry, seeks to maintain paper discusses Indonesia's opportunities in using
sustainable agriculture through increasing smart farming technology. The paper begins with an
productivity in order to increase the availability and overview of smart farming and sustainable agriculture,
diversity of food. SDGs number 9, namely Industry, followed by a discussion on smart farming in
Indonesia and smart farming opportunities for
Indonesia's future. Smart farming definitions and biodiversity loss, soil degradation, pollution of water
opportunities are identified through the literature. resources, increased production costs, reduced
Conclusions and suggestions are also offered. agricultural production, to poverty and a decline in
rural population. Therefore, as has been written by
2. Literature review Wilken (1991) that sustainable agriculture is
2.1 Sustainable Agriculture something that must be achieved and will be the main
Agriculture comes from the Latin ager (field) force of agricultural development efforts for the rest of
and colo (cultivating) which means processing fields this century and beyond. To achieve sustainable
or land. In the Oxford English dictionary (1971), agriculture, food products must be produced with high
agriculture is “the science and art of tilling the land, quality and sufficient quantities, resources must be
including the activities of gathering crops and raising protected, and the environment must be protected.
livestock; land cultivation, animal husbandry, In achieving sustainable agriculture, the role
agriculture (in a broad sense)”. The agricultural sector of technology have a significant factor. Technology is
(in a broad sense) occupies 60% of terrestrial land and anything that transforms inputs into outputs such as
uses 70% of global fresh water, and has provided physical/tangible things like machines and computers,
livelihoods for 40% of the world's population. In its as well as processes/strategies that organize inputs in
production, the agricultural sector is highly dependent certain ways, such as remote working, waste
on natural resources and can provide both damage and recycling, and sustainable business practices. In
benefits to the environment. Currently, agricultural sustainable technologies and strategies concept, which
production activities contribute more than a third of labor and land as the input factors for crops,
global greenhouse gas emissions, create technologies taking a part to improve efficiency or to
environmental services and generate renewable improve productivity (Rao, 2022). Economists use
energy, and contribute to maintaining food security. production functions to represent technologies as can
Humans need various agricultural products be described in the following chart.
such as food, clothing, and so on so that humans
cannot live without productive agriculture. When the
human population increases, the demand for
agricultural products also increases, if agricultural
productivity cannot be maintained, it will lead to a
decrease in food supplies, decreased profitability,
contaminated agricultural land, reduced vegetation,
decreased carbon dioxide production, and
vulnerability to environmental degradation. Lee and Source: Rao, North Dakota State University (2022)
DeVore (1968) once wrote that about 80 billion people
since “human culture” emerged, most of them live as 2.2 Smart Farming
hunters, while only 10% have lived as farmers, the fact Agriculture is important for human life
that agriculture is important to many humans because agriculture represents all the entities that are
necessitates agriculture. sustainable. under the linear order of the food chain for humans. As
Sustainable agriculture is an agricultural intelligent beings, humans are driven to continue to
system that empowers farmers to farm with natural make changes and innovations. The changes and
processes to conserve resources, minimize waste and innovations that have been made have created great
environmental impacts (Mason, 2003). Although in discoveries along with the rapidly changing world.
the short term the problems that arise are only financial Rapid changes, various trends that are created, to
problems, in the long term environmental problems technological advances make technology a part of
become a serious problem that threatens human routine. Smart cities, smart homes and networks, smart
survival. Sustainable agriculture aims to meet human campuses, and smart farms are examples of ICTs that
food needs, maintain and improve environmental help people get faster and more tangible results. By
quality, conserve and improve the efficiency of utilizing advanced technology, increasing the
resource use, maintain economic viability, improve efficiency of agricultural industry productivity to
the quality of life of farmers and communities, prevent balance demand-supply (due to the increasing world
problems and increase agro-ecosystem resilience, and population day by day) and reducing losses when
minimize waste and environmental impacts. . applying conventional methods can be realized.
The sustainability of environmentally Smart Farming integrates information and
friendly agriculture related to resources, population, communication technology with equipment and
and the environment is a serious problem for humans. sensors in carrying out agricultural production.
These problems include climate change, high levels of Currently, farmers can take advantage of the Internet
of Things (IoT) to increase efficiency such as process and bring farmers closer to consumers
irrigation, harvest information, to climate forecasting directly. One of the locations for the blockchain
using sensors. This can improve the accuracy of pilot project is in Jatiluwih, Tabanan, Bali with a
decision making, so that farmers can make good land area of around 60 hectares.
decisions in managing agricultural production. Smart ● Development of the use of drones to assist in
farming consists of 3 paradigms, namely smart spraying and land mapping.
consumers, smart farmers, and smart agriculture. ● Soil and weather sensors installed on farms to
Smart farming technologies include data acquisition help farmers monitor, count, and record
technology cycles, data analysis and evaluation conditions of the plants in real time.
technologies, and precision application technologies. ● Smart irrigation system with remote sensors that
Currently, various smart farming can be controlled automatically at different
technologies have been created that can assist farmers locations. This irrigation system can also be used
in managing agriculture, ranging from robotics and to provide nutrients and detect soil fertility.
mechatronics in the form of tractors; harvesters; Currently, Badan Penelitian dan Perkembangan
transplanters; drones; power assist suits; ICTs, Pertanian (Balitbangtan) in Indonesia have
automatic information sharing on crop; harvests; developed this smart irrigation system.
inputs; diseases; pest attack, to management in the ● Agriculture War Room (AWR) as a technological
form of remote sensing and AI (Hatanaka, 2022). breakthrough developed by Badan Penelitian dan
Smart farming is able to replace traditional farming Perkembangan Pertanian (Balitbangtan). AWR is
methods that are difficult and time consuming with used to monitor and control pest attacks, monitor
smart farming methods that are more effective, the spread of superior seeds and seedlings, as well
efficient, and sustainable. as a direct communication tool between the
The implementation of smart farming in government and farmers through sensor data on
Indonesia requires a diffusion process of innovation, agricultural products.
namely the theory put forward by Everett Rogers ● Siscrop (Information System) 1.0 which was
(2003), which states that in order for innovation to be developed based on the collaboration between the
adopted, it needs to be communicated through certain Indonesian Ministry of Agriculture, Lembaga
channels from time to time among members of the Penerbangan dan Antariksa Nasional (LAPAN),
social system. This diffusion process includes three and other ministries of institutions and
things, namely: 1) The qualities that make innovation universities. Siscrop 1.0 is carried out by utilizing
spread; 2) Understanding the needs of different user radar/SAR data from the Sentinel 1 satellite which
segments; 3) The importance of peer to peer is then processed to monitor the condition of rice
conversation and peer network. and other crops on agricultural land in fact.
Smart farming helps Indonesian agriculture
3. The Results and Discussions so it can fill national food needs by not only relying on
3.1 Smart Farming in Indonesia food imports. By using smart farming, farmers can
The world's population will continue to effectively use fertilizers and other resources to
increase over time which has implications for improve the quality and quantity of their crops (Doshi
increasing demand for food production. Unmet et al, 2019). However, the application of smart
demand for food commodities can lead to a food crisis. farming in Indonesia does not always only have a good
Facing the challenges of the food crisis, Indonesia influence. Smart farming also has benefits and
needs to strengthen the production of agricultural shortfalls in its application programs as follows.
products and local food availability which can be
assisted by smart farming through the use of Internet 3.1.1. Benefits of Smart Farming in Indonesia
of Things (IoT) based technology. Smart farming is Smart farming is nothing new in the
carried out with the help of ICT, soil sensors, and agriculture world. The presence of smart farming can
control systems installed on robots, autonomous provide benefits, which is increasing the amount of
vehicles, and other automated things (Mohamed et al, real-time data on crops, monitoring and controlling
2021). The government and society in Indonesia had farmers remotely, controlling water and other
started implementing smart farming 4.0 to help the resources, improving livestock management, accurate
agricultural production process. According to soil and crop evaluation, and increasing agricultural
Rachmawati (2021), there are several smart farming production (Mohamed et al, 2021). From that
models that have been implemented in several farms statement, Indonesia, which has started to use smart
in Indonesia, namely: farming as a more effective and efficient agricultural
● Blockchain technology for modern off farm solution, will be able to generate maximum profits if it
farming that will help shorten the distribution starts to be prevalent in smart farming. According to
Rachmawati (2020), the development of smart Another shortfall of Indonesian agriculture is
farming with the integration of Internet of Things the expense of the agricultural production process in
(IoT), the use of drones, aspects of agricultural Indonesia. The head of the Center for Indonesian
brainware-hardware-software, sensor analysis for Policy Study (CIPS) research, Felippa Amanta, argues
agricultural production, to resource management can that the cause of the high cost of agricultural
attract millennials who are more technology literate to production in Indonesia is limited land that can make
contribute to national agriculture. The opportunity for agricultural products inefficient with high production
the millennial generation to participate in smart costs. Another cause of high production costs in
farming will reduce the underestimate of the world of Indonesia is the limited quality of fertilizers and seeds
agriculture from young people. due to high costs. If smart farming is more evenly
distributed in Indonesia, the problem of high
3.1.2. Shortfalls of Smart Farming in Indonesia production costs such as small land mapping can be
The application of smart farming in overcome so that it can be more efficient. So, many
Indonesian agriculture has a lot of good effects. things need to be improved in Indonesian agriculture
However, there are still some shortfalls that must be in order to maximize the implementation of smart
corrected so the implementation of smart farming in farming.
Indonesia can be maximized. The success rate of smart
farming also depends on the system used, internet 3.2 Smart Farming Opportunities and Challenges
speed, sophisticated mobile devices, and satellites for Indonesia's Future
owned (Mohamed et al, 2021). This is also in line with Sustainable agriculture involves the adoption
the opinion of Kementrian Pertanian (Kementan) and use of technologies and strategies that allow
which mentions four requirements in fulfilling smart agriculture to pursue their responsibility-related
farming in the field of horticultural agriculture, that is objectives. This responsibility is a self-regulating
water, electricity, internet, and social. In addition, the business model that helps agriculture become
slope of the land is also needed in smart farming. conscious of and accountable for their impact on
Looking back, one of the reasons why smart farming multiple (e.g., economic, social, and environmental)
has not been implemented optimally is because the aspects of society in addition to their own goals or
internet is not evenly distributed in Indonesia. The target profits. Adoption of technologies which is
large number of small-scale farmers in remote villages called smart farming, can be referred to as the 4.0
who have minimal internet access makes smart green revolution in the field of agriculture combining
farming unable to run well. Smart agriculture requires agriculture methodologies with sensors technology,
continuous availability on the internet, but rural parts Information and Communication Technology (ICT),
of developing countries do not meet this requirement Internet of Things (IoT), Robotics and Drones to
(Doshi et al, 2019). achieve desired efficiencies of production with
To increase Indonesian agriculture through managed cost.
smart farming, problems in the Indonesian agriculture According to a survey, 80% of farmers in US
sector need to be resolved first. Rachmawati (2020) and 24% farmers in UK have already started using
argues that the agricultural world has several Smart Farming Tool (SFT). These numbers are
problems, such as farmers who are getting older due to cognizant of the fact that SFTs are adding value to the
the low regeneration of the agricultural world, low farming ecosystem. As far as scale of operations is
education of farmers, there are still many uses of considered, smart farming tools and techniques can be
conventional technology by Indonesian farmers, applied to large scale distributed conventional farming
limited agro-industrial processed products, exports of and can be applied to focus small farming set of
agricultural products in Indonesia are still form raw organic farms.
materials, and the small contribution of Indonesian Smart farming implementation will depend
innovation. It still has to be a note for the government on the markets of technologies which involves supply
and society, especially the millennial generation, to be side and demand side. Supply side or suppliers of
willing to contribute actively in agriculture. In technologies consists of research institutions,
addition, smart farming-based equipment also requires businesses, scientific researchers, etc, while the
farmers to understand and learn the use of technology demand side or consumers of technologies consists of
(Doshi et al, 2019). Small farmers who are not yet businesses, organizations, individuals, and society.
technologically literate also need to be provided with When consumers of technology “purchase” the
further training in order to be able to operate the technology from its suppliers and use it in their
technology needed in accordance with the production activities, technology adoption takes place.
implementation of smart farming. In Indonesia as an agriculture country,
adoption of smart farming have a big opportunities to
support sustainable agriculture implementation. The adoption of technology 4.0 to increase
Indonesian government and others stakeholders have the productivity of the agricultural sector in Indonesia
been promoting the utilization of technology 4.0 in the is still relatively low due to several obstacles, namely:
agricultural sector to improve agricultural efficiency challenges in the diffusion process of innovation,
and productivity. The Ministry of Agriculture took the limited funding/financing, and the lack of digital
initiative to implement technology 4.0 such as the capabilities of human resources in the agricultural
internet of things (IoT), computer vision, artificial sector.
intelligence (AI), human machine interface (HMI),
robotics and sensor technology. Artificial intelligence 3.2.1 Diffusion of Innovation
(AI) as one of the 4.0 technologies encourages the The first principle in Innovation Diffusion is
emergence of smart farming, precision farming the quality that makes the innovation spread. In
(precision agriculture), and other applications of AI achieving relative advantage, the innovation should be
technology. in line with farmers' expectations where innovations
such as smart farming and precission farming are
considered better ideas than the existing ideas, in terms
of economic, social prestige, and farmer’s satisfaction.
The greater the relative profit of an innovation, the
greater and faster the rate of adoption by farmers.
Other factors that should be considered in this
first principle of diffusion process is compatibility,
complexity, triability, and observability.
Compatibility includes prevalent values, social norms,
and existing ideas, from the planting to harvesting
process. Some farmers consider that smart farming
innovations are inconsistent with existing agricultural
management values and are not in line with past
Source: Ausgrainconf.com from Kompasiana, 2019
experiences. In this case, the potential adopters’
The use of IoT (internet of things) technology
opinions will influence market acceptance.
includes smart green houses that regulate light, water,
Unfortunately, the number of potential adopters is
soil conditions, and things that affect plant growth. It
very limited because technology 4.0 is expensive and
can support plants grow with the best quality. Another most farmers are limited in funding. In addition,
technology is smart irrigation system for underground farmers’ assessment on the compatibility are not
irrigation on dry land that regulates soil moisture. published so other farmers or in other regions do not
Meanwhile, the use of autonomous technology is for
know about the result.
automatic tractor that controls the work pattern of the
Complexity is related to the technological
tractor intelligently. Those various innovations in the
aspect in smart farming, which is difficult to
field of agriculture aim to help farmers in the process
understand by the farmers and user. New ideas that are
of planting up to harvesting so they can increase
easier to understand will be adopted more quickly than
efficiency and competitiveness, as well as increase
innovations that require new skills and knowledge
agricultural productivity. But unfortunately, the 4.0
because the capabilities of Indonesian farmers on
technology innovation has not been widely adopted by
digitalization are very limited.
farmers in Indonesia. In this case, an innovation In triability, the extent of smart farming that
diffusion process is needed so that smart farming can be tested by farmers is limited. New ideas that can
innovations can be adopted properly.
be tested by farmers, will generally be adopted faster
The diffusion process begins with a process
than innovations that cannot be tested. Triability
of communication through certain channels over time describes less uncertainty for farmers who consider to
among members of the social system that can
adopt the innovations. Observability intend to assess
influence the farmers’ mindset. This communication
the results of innovation that can be seen by other
will encourage the dissemination of information on
farmers. The easier other farmers see the results, the
innovations that improve the quality of agricultural
more likely they are to adopt the technology.
production so it can motivate farmers to change their
Observability also encourages farmers to discuss the
habits, increase understanding of each farmer’s needs idea of innovation with other farmers, but because
that vary according to the type of crop and the most of farmers generally have limited understanding,
characteristics of the land, and become a peer to peer the role of consultant is needed to explain the
conversation and peer network channel which very product/service.
important in the process of adopting smart farming.
The second principle of diffusion of the time lag in the process of smart farming adoption
innovation is the understanding of the farmer’ needs as so the use of digital information and communication
the users. For the successful adoption of smart technology can support agricultural development and
farming, it is important to assess the position of smart increase the agriculture productivity in Indonesia. It
farming innovations in improving the quality of life of also should be supported by the financial sector with
users. The producers of the technology should their financing facilities for farmers and start-up
consider the farmers’ expectation, perception, and innovators.
behavior as the user. This position is influenced by the
characteristic of the user, whether they are Innovators 3.2.3 Digital Mindset and Digital Capability
who incorporate innovation into agricultural sector, Digital mindset and digital capability is a
Early Adopters who validate innovation ideas, Early substantial challenges for farmers in adopting smart
Majority who intend to adopt innovation, Late farming. This technology most likely will be
Majority who are skeptical of innovation but need or affordable for millennial farmers who are digital
are influenced by the environment to adopt, and natives, but this sector is still driven by the older
Laggards who are wary of innovation. generation whose mindset is not yet a digital savvy. In
The last principle of the diffusion of addition, many young farmers do not have digital
innovation is the importance of peer to peer technology literacy because of their low education.
conversation and peer networks in order to understand Therefore, intensive education and assistance are
the characteristics of farmers. It is necessary to needed. It can be done through training centers,
approach every step of the innovation/entrepreneurial information centers, and an integrated programs by all
process to understand the characteristics of user stakeholders likes government, university, and
farmers. technology suppliers.
Climate data and also an important part of the
3.2.2 Limited Financing and Infrastructure information collected. AI technology will play a role
The application of smart farming in the in processing all data and information so that the
agricultural sector will have a direct positive impact on policies taken will be valid. Data accuracy and
farmers as producers and consumers of agricultural accessibility are indeed one of the main focuses
products, although there are a number of challenges in because it is realized that the right data and
its application such as investment/costs and information are a strong foundation for the
infrastructure. In a market of technologies, suppliers development of the agricultural sector.
and consumers of technologies need to develop the Climate data become an important part of the
valuation of the technologies before they decide on the information collected. AI technology will play a role
appropriate prices and make a deal to implement the in processing all data and information so that the
technologies. Both suppliers and consumers of decision taken will be valid. Data accuracy and
technology usually use capital budgeting or accessibility are important because the validity of data
investment analysis for technology valuation. This and information become a strong foundation for the
valuation sum of all future cash flows (positive & smart farming development.
negative), and adjust it for the time value of money and
risks. 4. Conclusion and Recommendations
Based on supplier perspective’s valuation of 4.1. Conclusion
technologies will includes cost or expenditures on a. Indonesia has implemented several smart
developing the technologies, often referred to as farming models with the help of the
research and development (R&D) spending, and the government and the society to fill national
benefits or profits from commercializing and selling food needs without depending on food
the technologies to customers, patents, royalties, etc. exports.
On the other side, the consumers or adopters’ b. The benefits of implementing smart farming
valuation of technologies will be based on their cost in in Indonesia are increasing the amount of
purchasing the technologies, either in one shot or in real-time data on crops, monitoring and
installments, also the benefits or profits from increased controlling farmers remotely, controlling
revenues or saved costs owing to the adopted water and other resources, improving
technologies. livestock management, accurate soil and crop
Another problem is the lack of digital evaluation, and increasing agricultural
infrastructure devices, internet infrastructure and its production. In addition, smart farming that is
accessibility in a number of regions of Indonesia that integrated with technology can provide an
need to be continuously improved. Adequate opportunity for the millennial generation to
infrastructure development is expected to eliminate contribute to national agriculture.
c. The shortfalls of implementing smart farming held by the Government, and by
in Indonesia is the uneven distribution of telecommunications companies as their
internet access, especially in rural areas. In Corporate Social Responsibility. Meanwhile,
addition, there are still many farmers who are for digital mindset and digital capability
not technology literate, while smart farming issues, it is necessary to increase farmers'
needs to implement technology in its literacy about smart farming technology and
application. The high cost of agricultural they assisted by experts who can teach
production is also a greater concern in farmers to operate the equipment at the
agriculture in Indonesia. beginning of implementation
d. There are still many agricultural problems in d. Increase the role of agricultural extension
Indonesia that must be resolved. To achieve workers/consultants because basically their
smart farming in Indonesia, various problems role is not only to introduce technology to
in the national agricultural world need to be farmers, but also to change the mindset of
resolved first in order to maximize the farmers to a digital mindset and increase the
application of smart farming. digital capacity of farmers to be able to
e. Indonesian agriculture still has obstacles that independently run their businesses.
become problems from the low adoption of
technology 4.0 to increase the productivity of References
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