STRATEGIES FOR DEVELOPING A DIGITAL TECHNOLOGY-BASED AGRIBUSINESS SUPPLY CHAIN TO ENHANCE THE VALUE ADDED OF LOCAL AGRICULTURAL PRODUCTS IN INDONESIA

Abstract

Indonesia possesses abundant agricultural resources; however, the value added of its local products remains relatively low due to fragmented supply chains, limited digital technology adoption, and weak stakeholder coordination. This study aims to formulate strategic recommendations for developing a digital technology-based agribusiness supply chain to enhance the value added and competitiveness of local agricultural products. A systematic literature review and qualitative content analysis were employed, examining peer-reviewed articles, government reports, and scientific publications related to digital agriculture, supply chain management, and value creation. Findings indicate that integrating advanced digital technologies, including the Internet of Things (IoT), artificial intelligence (AI), blockchain, and big data analytics, can significantly improve supply chain efficiency, transparency, traceability, and market accessibility while reducing operational inefficiencies. Furthermore, successful digital transformation requires robust multi-stakeholder collaboration among government agencies, industry providers, academia, and farmers to establish an integrated digital ecosystem. The study proposes a comprehensive strategic framework combining digital infrastructure development, human resource capacity building, smart agriculture technologies, and supportive public policies. This framework contributes theoretically to digital agribusiness literature and provides practical guidance for policymakers and practitioners seeking to increase the value added and global competitiveness of Indonesia's agricultural sector.