Opportunities And Challenges of Digital Supply Chains in the Agriculture Industry
Abstract
. This research analyzes the opportunities and challenges in the digitalization of Indonesia's agricultural supply chain system, focusing on the role of key technologies such as the Internet of Things (IoT), big data, Artificial Intelligence (AI), and blockchain. Indonesia's agricultural sector, which is strategic for food security, is still hampered by traditional supply chain practices characterized by limited access to information, low distribution efficiency, and lack of transparency. Various literature studies underscore the potential of digital technologies, including the concepts of smart farming and precision agriculture, in improving production accuracy, reducing operational costs, and strengthening farmers' competitiveness. Specifically, blockchain offers solutions to improve product traceability and build consumer trust. This study uses a descriptive qualitative approach through a literature review of national and international journals published between 2021 and 2025. The analysis is carried out by identifying the opportunities, challenges, and strategic implications of digitalization. The results of the study found that the key opportunities of digitalization include improving production efficiency, logistics optimization, AI-based demand prediction, and transaction transparency. However, digitalization also faces major challenges such as limited digital infrastructure, low technological literacy among farmers, high initial investment costs, and data security and standardization issues. The results of the study emphasized that the digitalization of the supply chain has significant potential to strengthen food security and improve the welfare of farmers. The successful implementation of digitalization is highly dependent on regulatory support, digital capacity building of agricultural actors, and cross-stakeholder collaboration to create an inclusive and sustainable digital agriculture ecosystem.
Keywords: Digital Supply Chain, Agriculture, Opportunities, Challenges, Digital Transformation
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Open Access
HUMANIS (Humanities, Management and Science Proceedings) is a national peer reviewed and open access journal that publishes significant and important research from all area of agroindustry.
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