The modernization of the agricultural sector is one of the key strategies to enhance productivity amid increasingly complex climate change challenges. However, smallholder farmers in Indonesia continue to struggle to maintain sustainable farming practices due to limited capital and restricted access to modern technologies.
This situation has resulted in low productivity and income levels, with farmers earning an average of only IDR 1.55 million per month according to Statistics Indonesia (BPS).
The adoption of precision farming technology, however, can help optimize the use of fertilizers, water, and pesticides efficiently, leading to higher yields and reduced production costs. Collaborative efforts between universities and industry are crucial for expanding access to agricultural innovation for smallholder farmers.
As a concrete step, the Faculty of Agriculture, Universitas Gadjah Mada (Agriculture UGM), in collaboration with PT Pupuk Indonesia, has conducted a national study titled “Farm Management Analysis and Adoption of Precision Agriculture Technology” across 13 key provinces in Java, Sulawesi, Sumatra, Bali, and West Nusa Tenggara.
This collaboration demonstrates the synergy between academia and industry in advancing agricultural efficiency and productivity. The study involved 760 rice and corn farmers from major rice and corn production regions. The findings indicate that precision technology can significantly reduce input use and improve labor efficiency.
“The implementation of precision agriculture technology can increase efficiency in the use of seeds, fertilizers, pesticides, and labor,” explained Dr. Hani Perwitasari, Head of the Research Team from Agriculture UGM.
Dr. Perwitasari elaborated that adopting precision technology has a significant impact on cost savings and yield improvement. However, several challenges remain in the field, including limited internet infrastructure in rural areas, high investment costs, and low technological literacy among farmers.
She emphasized that government support, including training, technical assistance, and accessible financing, is crucial to help farmers adapt to modern agricultural systems.
“Most farmers do not yet have adequate farm record-keeping, whereas such documentation is essential in precision farming practices as it supports data-driven decision-making,” she said.
The importance of farm record-keeping was also one of the main findings of the study. Through systematic data documentation, farmers can monitor productivity, plan cultivation more effectively, and gain better access to financing and agricultural insurance.
This practice not only improves efficiency but also strengthens farmers’ bargaining power within the agribusiness supply chain. Dr. Perwitasari emphasized that proper record-keeping enhances farmers’ credibility in the eyes of financial institutions.
“Farm record-keeping is an integral part of modern agricultural systems that supports farmers in decision-making and risk management,” she explained.
Furthermore, the study revealed that most farmers are of productive age and predominantly male, with the majority having completed only primary or junior secondary education. This finding serves as a foundation for UGM to promote the development of adaptive and sustainable training programs.
By strengthening human resource capacity in the agricultural sector, the adoption of precision technology can be implemented more effectively.
“Farmers using this technology tend to achieve 17.2% higher yields, with input costs for rice and corn production reduced by 1-6% and 17%, respectively,” said Dr. Perwitasari.
PT Pupuk Indonesia plays a crucial role in supporting this initiative by providing high-quality fertilizers, technical assistance, and promoting agricultural products. The company also helps expand farmers’ access to efficient technologies, including digital farming applications and drone-based systems for fertilizer recommendations and yield predictions.
This collaboration reinforces the role of state-owned enterprises (BUMN) in developing innovation-based sustainable agriculture.
“Precision technology not only transforms farming methods but also reshapes the way we think about managing agricultural resources efficiently,” Dr. Perwitasari remarked.
The synergy between UGM and PT Pupuk Indonesia serves as a tangible example of a strategic partnership between academia and industry, accelerating agricultural transformation in Indonesia.
The findings of this study demonstrate that precision farming can be a practical solution for enhancing productivity and improving the welfare of smallholder farmers. Through data-driven scientific approaches, Indonesian agriculture is moving toward a smarter, more efficient, and globally competitive system.
“This collaboration is expected to serve as a replicable model for other regions in Indonesia,” concluded Dr. Perwitasari.
Authors: N. Palupi, A. Listyaningrum, G.B. Nugraha
Editor: Triya Andriyani
Post-editor: Rajendra Arya
Photographs: The research team on precision agriculture