Digital Agricultural Technology for Smallholder Farmers: Barriers and Opportunities in Indonesia
Abstract
The adoption of Digital Agricultural Technology (AgTech) has been widely promoted as a solution to enhance productivity, efficiency, and sustainability in Indonesia’s agricultural sector. However, in regions dominated by smallholder farmers, such as West Java, Central Java, Yogyakarta, East Java, Bali, and Lampung, AgTech uptake remains limited due to infrastructural, economic, and institutional challenges. This study aims to explore the barriers and opportunities in AgTech adoption among smallholder farmers, cooperatives, and agritech stakeholders. Utilizing a qualitative research approach, data were collected through in-depth interviews and focus group discussions involving 85 participants from diverse agricultural settings. Thematic analysis and NVivo-assisted sentiment mapping were used to analyze stakeholder perspectives. Results reveal that AgTech adoption is progressing but uneven, with persistent challenges including limited digital literacy, unreliable internet and electricity, dependence on middlemen, and misalignment between infrastructure investment and training. Successful public-private partnerships (PPPs) and targeted training programs emerged as key enablers. The findings underscore the need for integrated strategies that combine technological infrastructure with localized capacity-building and financial support. This study contributes empirical insights for policymakers, agritech developers, and development agencies aiming to advance inclusive and sustainable digital transformation in Indonesia’s agricultural landscape.
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References
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Zscheischler, J., Brunsch, R., Rogga, S., & Scholz, R. W. (2022). Perceived risks and vulnerabilities of employing digitalization and digital data in agriculture–Socially robust orientations from a transdisciplinary process. Journal of Cleaner Production, 358, 132034.
Agarwal, V., Malhotra, S., & Dagar, V. (2023). Coping with public-private partnership issues: A path forward to sustainable agriculture. Socio-Economic Planning Sciences, 89, 101703.
Birner, R., & Resnick, D. (2010). The Political Economy of Policies for Smallholder Agriculture. World Development, 38(10), 1442–1452. https://doi.org/10.1016/j.worlddev.2010.06.001
Braun, V., Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101.
Bu, X. (2024). Digital Literacy and Farmers’ Income Level: A Difference Analysis Based on K-prototypes Clustering. ICCSMT ’24: Proceeding of the 2024 5th International Conference on Computer Science and Management Technology, 988–994.
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches. Sage.
da Silveira, F., da Silva, S. L. C., Machado, F. M., Barbedo, J. G. A., & Amaral, F. G. (2023). Farmers’ perception of barriers that difficult the implementation of agriculture 4.0. Agricultural Systems, 208(January), 103656. https://doi.org/10.1016/j.agsy.2023.103656
Dadzie, S. K., Ndebugri, J., Inkoom, E. W., & Akuamoah-Boateng, S. (2022). Social networking and risk attitudes nexus: implication for technology adoption among smallholder cassava farmers in Ghana. Agriculture & Food Security, 11(1).
Dimitri, C., & Gardner, K. (2019). Farmer use of intermediated market channels: A review. Renewable Agriculture and Food Systems, 34(3), 181–197.
Drewry, J. L., Shutske, J. M., Trechter, D., Luck, B. D., & Pitman, L. (2019). Assessment of digital technology adoption and access barriers among crop, dairy and livestock producers in Wisconsin. Computers and Electronics in Agriculture, 165(June), 104960. https://doi.org/10.1016/j.compag.2019.104960
Ezeomah, B. N. (2021). The role of digital platforms in bridging institutional voids in financing agriculture: a Nigerian case study. The University of Manchester (United Kingdom).
Gardezi, M., Adereti, D. T., Stock, R., & Ogunyiola, A. (2022). In pursuit of responsible innovation for precision agriculture technologies. Journal of Responsible Innovation, 9(2), 224–247.
Issa, H., Lakkis, H., Dakroub, R., & Jaber, J. (2023). Examining User Engagement and Experience in Agritech. International Journal of Contemporary Management, 59(2).
Janssen, S. J. C., Porter, C. H., Moore, A. D., Athanasiadis, I. N., Foster, I., Jones, J. W., & Antle, J. M. (2017). Towards a new generation of agricultural system data, models and knowledge products: Information and communication technology. Agricultural Systems, 155, 200–212. https://doi.org/10.1016/j.agsy.2016.09.017
Klerkx, L., & Rose, D. (2020). Dealing with the game-changing technologies of Agriculture 4.0: How do we manage diversity and responsibility in food system transition pathways? Global Food Security, 24(October 2019), 100347. https://doi.org/10.1016/j.gfs.2019.100347
Laurent, C., Nguyen, G., Triboulet, P., Ansaloni, M., Bechtet, N., & Labarthe, P. (2022). Institutional continuity and hidden changes in farm advisory services provision: evidence from farmers’ microAKIS observations in France. The Journal of Agricultural Education and Extension, 28(5), 601–624.
Mannari, C., Bacco, M., Spagnolo, G. O., Malizia, A., & Ferrari, A. (2024). Towards a Method for Modelling Socio-Technical Process Transformation in Digital Agriculture. Proceedings - 32nd IEEE International Requirements Engineering Conference Workshops, REW 2024, 306–315. https://doi.org/10.1109/REW61692.2024.00046
Maulidiah, I. A., Prayitno, G., & Subagiyo, A. (2021). The Role of Agricultural Extension on The Development of Farmers Group ( Case Study : Pare Sub-district , Blitar Regency
SOCA: Jurnal Sosial Ekonomi Pertanian https://doi.org/10.24843/SOCA.2024.v18.i03.p01
281
, East Java ). SOCA: Jurnal Sosial Ekonomi Pertanian, 15(3), 482–494.
Reichardt, M., Jürgens, C., Klöble, U., Hüter, J., & Moser, K. (2009). Dissemination of precision farming in Germany: Acceptance, adoption, obstacles, knowledge transfer and training activities. Precision Agriculture, 10(6), 525–545. https://doi.org/10.1007/s11119-009-9112-6
Rotz, S., Gravely, E., Mosby, I., Duncan, E., Finnis, E., Horgan, M., LeBlanc, J., Martin, R., Neufeld, H. T., Nixon, A., Pant, L., Shalla, V., & Fraser, E. (2019). Automated pastures and the digital divide: How agricultural technologies are shaping labour and rural communities. Journal of Rural Studies, 68(February), 112–122. https://doi.org/10.1016/j.jrurstud.2019.01.023
Rust, N. A., Stankovics, P., Jarvis, R. M., Morris-Trainor, Z., de Vries, J. R., Ingram, J., Mills, J., Glikman, J. A., Parkinson, J., Toth, Z., Hansda, R., McMorran, R., Glass, J., & Reed, M. S. (2022). Have farmers had enough of experts? Environmental Management, 69(1), 31–44. https://doi.org/10.1007/s00267-021-01546-y
Sharma, R. & Sharma, S. K. (2025). Optimizing agricultural downstream supply chain: addressing information asymmetry and losses. Business Process Management Journal. https://doi.org/https://doi.org/10.1108/BPMJ-02-2024-0097
Sihombing, M. T., Hubeis, M., Magister, P., Manajemen, I., & Manajemen, D. (2024). Analisis Adopsi dan Penggunaan Aplikasi Pertanian Digital oleh Petani Skala Kecil di Kabupaten Tuban dengan Model UTAUT. 19(2), 80–92.
Singh, N., & Kapoor, S. (2024). Agtech platforms: complementors and value propositions. Technology Analysis & Strategic Management, 1–16. https://doi.org/https://doi.org/10.1080/09537325.2024.2306636
Smidt, H. J., & Jokonya, O. (2022). Factors affecting digital technology adoption by small-scale farmers in agriculture value chains (AVCs) in South Africa. Information Technology for Development, 28(3), 558–584. https://doi.org/10.1080/02681102.2021.1975256
Smith, A. (2024). ‘AgTech’ and the restructuring of agrifood labour regimes: Digital technologies, migrant labour and the intensification of production in the UK glasshouse sector. New Technology, Work and Employment, June 2023, 309–334. https://doi.org/10.1111/ntwe.12294
Touboulic, A., Chicksand, D., & Walker, H. (2014). Managing imbalanced supply chain relationships for sustainability: A power perspective. Decision Sciences, 45(4), 577–619.
Wolfert, S., Ge, L., Verdouw, C., & Bogaardt, M. J. (2017). Big Data in Smart Farming – A review. Agricultural Systems, 153, 69–80. https://doi.org/10.1016/j.agsy.2017.01.023
Wong K; Dhulipala R; Southwood R; King B. (2021). Accelerating digital technology in agriculture: India agtech startups’ transition to scale. CGIAR Platform for Big Data in Agriculture, Cali Colombia. https://doi.org/10.5772/intechopen.92469
World Bank. (2021). Digitalization of agriculture in developing countries: Opportunities and challenges. World Bank Publications.
Yeo, M. L., & Keske, C. M. (2024). From profitability to trust: factors shaping digital agriculture adoption. Frontiers in Sustainable Food Systems, 8(1456991).
Zscheischler, J., Brunsch, R., Rogga, S., & Scholz, R. W. (2022). Perceived risks and vulnerabilities of employing digitalization and digital data in agriculture–Socially robust orientations from a transdisciplinary process. Journal of Cleaner Production, 358, 132034.
Published
2025-05-28
How to Cite
SATRIA, Dias; MAGHRABY, Wahida; SETYANTI, Axellina Muara.
Digital Agricultural Technology for Smallholder Farmers: Barriers and Opportunities in Indonesia.
SOCA: Jurnal Sosial Ekonomi Pertanian, [S.l.], v. 18, n. 3, p. 267-281, may 2025.
ISSN 2615-6628.
Available at: <https://ojs.unud.ac.id/index.php/soca/article/view/125758>. Date accessed: 31 oct. 2025.
doi: https://doi.org/10.24843/SOCA.2024.v18.i03.p01.
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