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E-Commerce as a Tool to Increase Farmer Welfare
Ade Pugara, Brian Pradana

Indonesian Association of Urban and Regional Planners/IAP Jawa Tengah


Abstract

The Internet of things is the new paradigm in the way of the human live result of telecommunication and information technology improvement. That-s paradigm also influences the agriculture sector. Currently, many agriculture apps are introduced in playstore apps by some startup companies. At list 16 apps are recognized in the android platform such as TaniHub, Igrow, Regopantes and etc. Each of them contains usefull information regarding cultivation tips, product price and experience sharing. Many apss provide an up tp date price of the agriculture product such as vegetable and fruit. It connects a farmer and buyer, thus the customer can buy the product diretcly. It called e-commerce. That-s idea aims to erase the long terms distribution because of Tengkulak role. Tengkulak is a person who buys the farmer product directly and on a vast scale. The problem is tengkulak usually buy that product in the lower price compare to market price. Even though the farmer obtains a small benefit or even loss, they still encash it because they have no market option. Toward agriculture apps, the startup developer attempt to solve this problem. In the other hand, the bond between tengkulak and farmer is not an ordinary bond between seller and buyer. In some place such as in Demak Regency, the tengkulak involve in the social structure because they are recognized as an elder in the community such as tetua desa, head of the village moreover religion leader. The other problem is not of all farmers have the capacity and knowledge to operate the apps. These phenomena result in the failure of e-commerce goal in price control. However, in the other condition where the farmer has their own community company such as koperasi tani, the app successfully improved the farmer revenue because of direct sale at a decent price. The koperasi has a significant role to manage the farmer product and promote them trough apps or digital marketing.

Keywords: e-commerce, agriculture, tengkulak, koperasi

Topic: Agricultural Development

Link: https://ifory.id/abstract/jK7nawGE4H8R

Conference: The 4th International Conference on Regional Development (ICRD 2019)

Plain Format | Corresponding Author (Ade Pugara)

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