Special issue: Smart and Resilient Agri-Food Systems for Integrating Smallholder Farmers into Global

Value Chains

Applications of the Internet of Things (IoT) and Blockchain

for Agriculture in Indonesia

Yandra Arkeman1*, Sari Intan Kailaku2,3, Ganjar Saefurahman4, and Rizki Fatullah5
1Professor, Agroindustrial Engineering Department, Faculty of Agricultural

Technology, IPB University, Bogor, Indonesia

2Researcher, Indonesian Center for Agricultural Postharvest Research and

Development, Bogor, Indonesia

3Doctoral Student, Agroindustrial Engineering Study Program, Graduate School, IPB

University, Bogor, Indonesia

4Researcher, Surfactant and Bioenergy Research Center, IPB University, Bogor,

Indonesia
5Graduate Student, Computer Science Study Program, Graduate School, IPB

University, Bogor, Indonesia

Email: [email protected]

Received April 1, 2022; Accepted July 22, 2022

ABSTRACT
The agricultural sector is a source of food, clean water, and natural medicine, which is very important
for human life. Agricultural problems need to be handled by the massive use of robotics and artificial
intelligence technology along the agricultural value chain from upstream to downstream (from land to
consumer) with the help of satellites and drones for remote sensing. Precision Agriculture is a system
where input, process, and output parameters are measured and controlled precisely and accurately to
produce efficient and productive agriculture. This paper aims to present the applications of Internet of
Things (IoT) and blockchain technology in Indonesia's agriculture. Three case studies and conceptual
designs are presented, i.e., IoT and machine learning for quality monitoring of mango in long-distance
transportation, IoT and blockchain application for logistics and supply chain system of melon, and IoT
application in Smart Algae Pond for microalgae biomass production.

Keywords: agriculture, blockchain, Indonesia, Internet of Things, machine learning

INTRODUCTION
Being on the equator and the third most biodiverse country, Indonesia is one of the largest agricultural
countries and the sixth-largest exporter of agricultural products in the world. The agricultural sector is a
source of food, clean water, and natural medicine, which is very important for human life. If this sector
is left without a touch of advanced digital technology, such as robots and artificial intelligence (AI),
agricultural problems will become more severe and can disrupt national stability (Arkeman, 2021).
Agricultural problems in Indonesia need to be handled by the massive use of robotics and artificial
intelligence technology along the agricultural value chain from upstream to downstream (from land to
consumer) with the help of satellites and drones for remote sensing. This system is called Precision
Agriculture because the input, process, and output parameters are measured and controlled precisely and
accurately to produce efficient and productive agriculture. An intelligent system allows the agribusiness
and supply chain managers to determine, for example, when to harvest certain plants in the fields or
gardens, in what quantity, what quality, where to market, when to reach consumers, and at what price.
Therefore, a balance between supply and demand can always be maintained. This system applies to
agriculture broadly, including fisheries, marine (maritime), livestock, and plantations (Arkeman, 2021).
Numerous applications of Precision Agriculture in developed countries included driverless tractors
for land cultivation, drones for fields and plantations monitoring, and even the combination of

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bioinformatics and genetic algorithms to search for superior seeds. Automated harvest and postharvest
processes use rapid and non-destructive quality testing methods. The agricultural product collection
system can determine the shortest vehicle route with ant colony optimization techniques. Blockchain
technology and big data increase the transparency of the flow of goods and monetary along the value
chain of agricultural products (Arkeman, 2021).
For future agro-industry development (Agro-industry 4.0), there are several other robotics and
artificial intelligence technologies, i.e., intelligent packaging systems, adaptive inventory systems with
non-linear models for perishable agro-industry products, intelligent vision systems for product sorting,
non-destructive quality testing for final product quality assessment, intelligent bioreactors, intelligent
agro-logistics systems using blockchain technology and agent-based modeling techniques to study
changes in consumer preferences and many others (Arkeman, 2021). Therefore, applying high-precision
technology in agriculture and agro-industry can overcome agriculture and food shortage problems. This
study aimed to present the applications of Internet of Things (IoT) and blockchain in Indonesia's
agriculture. Three case studies and conceptual designs are presented in this article.

INTERNET OF THINGS AND BLOCKCHAIN: STATE OF THE ART

Internet-of-Things (IoT) aims to integrate the physical world with the virtual world by using the internet
as a medium for communicating and exchanging data. IoT is a system of interrelated computing devices,
mechanical and digital instruments, objects, or people equipped with specific identifiers and data
transferability over a network without human-to-human or human-to-computer interaction (Elijah et al.,
2018). The implementation of IoT in various aspects of agribusiness has been studied and reported,
especially in developed countries (Tzounis et al., 2017; Villalobos et al., 2019).
For instance, IoT architecture has been applied in many developed countries worldwide to monitor
quality and support decision-making by supply chain management. The IoT architecture design along
the supply chain connects various supply chain actors with data input from supply chain actors, machine
learning and cloud computing for data processing, and communication networks for information transfer.
Applying local sensing and communication architectures can create a more comprehensive online
monitoring of fresh produce quality, especially for short distances using trucks, compartments, or cold
storage rooms. This sensor can be integrated with a Wi-Fi interface or 3G / 4G network to communicate
data to users (Pang et al., 2012; Jedermann et al., 2014; Pal and Kant, 2020; Torres-Sánchez et al., 2020).
The supply chain operations of fresh produce are transforming rapidly with the infusion of information
technology, from non-destructive quality assessment, automation in product handling, labeling
standardization, packaging, logistics management, and many more. Online monitoring and operational
control have been utilized to maintain food freshness and safety, reduce food loss and waste, and increase
transportation and distribution efficiency (Pal and Kant, 2020).
In addition, the intelligent monitoring and control of the cultivation system are crucial in
agriculture because it increases the production and quality of products and prevents the critical conditions
for the key parameters that can compromise the farming system. Dorado et al. (2016) designed an
intelligent farm system to classify and grade tomatoes. The process automatically used image processing
and fuzzy logic. The system classified if a tomato was damaged or not and distinguished if a specific
fruit or crop is under-ripe, ripe, or overripe. It was believed that the study was of great help to farmers
for high yield and productive plant harvests. Esposito et al. (2017) developed an affordable and easy-to-
use IoT application for the control and monitoring of a microalgae cultivation equipped with biological
modeling for Decision Support System (DSS) to the operator for managing a production plant in Southern
Italy.
Along with IoT, blockchain is becoming a preferred solution for improving traceability and
security problems in the food supply chain. It is a chain of blocks that stores all information from network
activities in a supply chain (Tian, 2016). It is a traceable database that allows all users to add data as a
transaction. Users can review each data submitted by other users, but without the ability to change it. A
mining process controls the security and validity of the system by verifying the data (block) before adding
them into the chain. Surasak et al. (2019) designed and developed a traceability system for Thailand's
agriculture products. Blockchain enhances transparency and data integrity. They added OurSQL on
another layer to help the query process of the blockchain database, making the system more user-friendly
than an ordinary blockchain database. Users can use the website and android application to follow the
product tracking information.
In the agricultural sector in Indonesia, important information such as grain prices, soil quality, and
land ownership from farmers and farming agents can help Indonesian farmers increase annual yields.
Indonesia is fertile land for agricultural and plantation production such as rice, secondary crops and oil
palm, but the entire industry is still hampered by a series of deep-rooted problems, such as poor land use

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practices, very long supply chains, adulteration, and fraudulent middlemen. Therefore, IoT and
blockchain technology should be introduced and spread urgently in Indonesian agriculture to overcome
those problems.
Agriculture is an activity that is prone to risk, because the commodity is easily damaged. A
traceability system is needed to ensure that the commodity is received in good condition by consumers.
In agricultural supply chain management, blockchain technology allows actors to trace the supply chain
of their products, so they can control the quality of these agricultural commodities. The adoption of
blockchain technology can help reduce the business risks. For example, blockchain technology can
reduce the number of suppliers or players in a long supply chain process. This is the importance of
blockchain technology in improving agribusiness supply chain management (Vikaliana et al., 2020).
Blockchain is exceptional in alleviating the utilization of smart contracts. Shahid et al. (2020)
proposed a reputation system to maintain the credibility of agrifood supply chain entities. They provided
algorithms and discussed the performance of smart contracts in blockchain. The coupling of the
blockchain database with the Internet of Things allows the traceability system to collect real-time
information and store it in a secure database. It is essential in improving food safety and quality control
in any part of agribusiness activity in Indonesia.

METHODOLOGY
System design
The general method used in the study consisted of several stages, i.e., problem identification,
architectural design, program implementation, and evaluation (Figure 1). More specifically, a desk study
preceded the study to identify background and problems. Requirement analysis provided comprehensive
information to develop a system design. It included the requirements of the users and the system, which
were essential to formulate the business process and would be needed in the evaluation stage after
implementing the system design (Figure 2).

Figure 1. The general method of system design development.

Figure 2. The flow chart of the implementation of the system design.

Requirement analysis guides researchers in developing their method and architecture development.
Generally, an IoT architecture consists of four layers, covering different stakeholders' requirements. Data
collection, processing, network connection, and communication / application are performed in separate
layers. A well-designed IoT system provides continuous monitoring and triggers the appropriate events
according to the requirement (Mondal and Rehena, 2018). Surasak et al. (2019) designed the system
architecture into two main components, i.e., hardware and service. The hardware-oriented design
included IoT devices, servers, and smartphones. In contrast, the service-oriented design included client,
system management, and cloud services.

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Michael et al. (2019) focused on the privacy concerns of the data flow in six stages, i.e., data source,
data capture, primary use, data storage, data reuse, and data removal. Iswari et al. (2019) emphasized
that the development of a blockchain system needs to be preceded by a system requirement analysis to
determine the required components in the blockchain system. The requirement analysis also helps the
coding process. Two diagrams of Unified Modeling Languages (UML), i.e., use case diagrams and
sequence diagrams, are used to analyze the system requirement. Their study results showed that the
blockchain system needs two inputs, i.e., (1) the structure of the supply chain and the activities that occur
in it, and (2) four stakeholders (farmers, collectors, agroindustry, and exporters.
The IoT architecture design developed starts from data communication settings to the system used
for monitoring and controlling. The IoT architecture designed is based on three important layers, i.e., the
perception layer which functions as a sensor that takes data from the environment and sends data to the
network layer in a certain form; the transport layer which functions to connect the sensor with the
application through the microcontroller; and the application layer as an application that interacts directly
with the user (Sethi and Sarangi, 2017). The system testing carried out includes functional testing, and
performance testing. Functional testing is carried out on the system that is made whether it can run well
or not by using the black-box method. Meanwhile, the performance testing of a protocol includes several
aspects, i.e., protocol delay, packet loss and bandwidth used.

THREE CASE STUDIES AND CONCEPTUAL DESIGNS

IoT and machine learning for quality monitoring of mango in long-distance
transportation
Mango is one of Indonesia's superior fruits. Some of the main challenges in Indonesia's mango trading
activity are the long supply chain, both for domestic trading and export, the perishability of the fruit, and
the lack of quality monitoring. These challenges have resulted in quality uncertainty and insecurity, high
postharvest losses, and inconsistent export performance.
The challenges mentioned above have been addressed in the global trade environment by
monitoring real-time transportation conditions (Jedermann et al., 2014; Lin et al., 2015; Hsiao and Huang,
2016; Torres-Sanchez et al., 2020). Moreover, real-time quality prediction has become available now
that machine learning techniques and IoT have grown rapidly (Jedermann et al., 2014; Badia-Melis et
al., 2018; Pal and Kant, 2020. The development of IoT architecture and a well-built information system
would be the foundation of the real-time quality monitoring system. The framework is presented in
Figure 3.

Figure 3. The framework of the quality monitoring system development.

Among the main factors influencing mango quality are maturity level and transportation conditions
(Medlicott et al., 1990). As in other climacteric fruits, mango's ripeness does not occur simultaneously
in each tree. This characteristic is a serious challenge in global trade and long supply chains. In order to
achieve better sorting and grading results, advanced technology, such as thriving non-destructive
techniques, needs to replace manual subjective evaluation methods. More importantly, combining non-
destructive techniques with AI technologies can produce a more accurate prediction of fruit maturity
classification.

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Recent studies have shown that ICT implementation can achieve optimization of perishables
supply chains. Real-time information, such as temperature and humidity, and ultimately the remaining
shelf life, should be accessible to stakeholders (Jedermann et al., 2014; Lin et al. 2015; Hsiao and Huang,
2016). Integration of AI and IoT allows accurate and timely reports for stakeholders. Therefore, the
quality of monitoring system is supported with sufficient information for supply chain actors to make
better logistics decisions (Badia-Melis et al., 2018).
IoT implementation in various agribusiness aspects has been studied and reported, especially in
developed countries (Pang et al., 2012; Tzounis et al., 2017; Villalobos et al., 2019). The non-destructive
method integrated with IoT technology is a rapid and practical provider of quality information on fresh
produce. Integrating IoT technology with the non-destructive quality measurement and monitoring
transportation environment conditions allows supply chain actors to exchange and obtain information
regarding products' real-time quality, anytime and anywhere.
The presented paper focuses on a supply chain of mango, which includes long-distance
transportation and quality monitoring problems. We propose an approach to address the problems using
artificial intelligence and IoT integration. A quality monitoring system can use data from the non-
destructive measurement of initial maturity level and the real-time transportation conditions from IoT
sensors to predict the final grade of mango after long-distance transportation. Figure 4 describes the
activities conducted to develop the quality monitoring system.

Figure 4. Research stages of developing a real-time quality monitoring system for long-
distance transportation of mango.

The first stage is a thorough laboratory experiment that includes destructive and non-destructive
measurements to obtain mango's respiration patterns and physiological changes during storage. The data
obtained in the first stage is used to develop a quality deterioration model in the next stage.
Simultaneously, an IoT architecture is built (stage 3) and integrated into an information system to provide
stakeholders with real-time data (stage 4). The quality deterioration model and the real-time
transportation condition streaming from the IoT devices are utilized to develop the quality prediction
model in the last stage.
The IoT architecture development in the study includes building four layers, i.e., sensing, network,
service, and application (Ray, 2018; Jagtap and Rahimifard, 2019), as shown in Figure 5. The IoT
architecture design will meet the needs of the supply chain actors to monitor the transportation conditions
and predict the final quality of mango upon arrival. The IoT architecture will consist of a series of sensors,
a storage and linkage system (such as database, servers, and distributed computer networks), and several
wired and wireless communication infrastructures (Wi-Fi, cellular, satellite, power line) (Gubbi et al.,
2013). Due to its pervasive nature, all sensors and devices generate a vast amount of data, processed to
extract meaningful information to support decision-making (Zaslavsky, Perera, and Georgakopoulos,
2013).

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Figure 5. The IoT architecture for real-time quality monitoring of mango for long-distance
transportation (modified from Jagtap dan Rahimifard (2019)).

In this study, the quality prediction of mango mainly used the data of initial maturity levels and
real-time transportation environment conditions, i.e., temperature and relative humidity, to predict the
final grade (Figure 6). Initial maturity level data obtained from non-destructive measurement using a
NIR instrument and the transportation conditions data retrieved from the IoT sensors were processed and
analyzed by a machine learning. The data are stored and processed in the Cloud and accessible to
stakeholders by connecting to Wi-Fi or a 3G/4G network.

Figure 6. The integration of machine learning into the IoT architecture to develop a real-time quality
prediction system.

Finally, the success of IoT architecture implementation in a system is determined by its design and
service. Sayar and Er (2018) analyzed two IoT implementations in manufacturing companies. Successful
implementation required solid product design and, more importantly, a well-designed system and well-
executed service. Customer needs have to be monitored so that companies can anticipate and address
various needs that would arise.

IoT and blockchain application for logistics and supply chain system of melon
Melon (Cucumis melo L.) is one of the most important fruits consumed and grown globally and plays an
important role in horticulture around the world (Zhang et al. 2020). Indonesia produced more than

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122,105 tons of melons in 2019 (Central Agency on Statistics, 2019). In tropical environments like
Indonesia, heat and humidity are common throughout the year. This climate affects fruit quality after
harvest, including melon quality (Darmajana et al., 2018).
Fruit quality is a major concern for the government and consumers, industry players, and
policymakers (Lehtinen 2011). The origin of the product, raw materials, production methods, applicable
work standards, and the production process's environmental impact are essential issues (Khan et al.,
2018). Because the supply chain of agricultural products, in general, is still long, the quality of final
consumer products is not maintained due to the length of the supply or distribution chains. As a result,
end consumers are increasingly concerned about the origin, delivery conditions, and food quality.
Therefore, this growing supply chain sector requires a complete, efficient and effective food traceability
system (Tsang et al., 2019).
To overcome the above challenges, a blockchain-IoT based melon freshness tracking system was
proposed in this study to achieve the following objectives: (i) to integrate blockchain and IoT technology
for efficient and effective traceability, and (ii) to support shelf life adjustment and quality loss assessment
to improve quality assurance. For better computing load, the blockchain was modified as a lightweight
blockchain to be associated with cloud computing to support IoT monitoring and can be vaporized after
the entire traceability lifecycle to release system computing resources. Based on these reliable data
sources, decision support in food quality can be performed using blockchain technology and IoT, and
artificial intelligence in managing the shelf life of melons.
Integrating blockchain technology and IoT is an important contribution expected to revolutionize
digital transformation in many fields (Makhdoom et al., 2019). Blockchain can be validated and deployed
across many heterogeneous IoT networks as a distributed ledger. One of the most promising trends in
which blockchain and IoT can work together in 2030 is tracking and managing global supply chains. In
addition, blockchain and IoT benefits in digital energy and smart networks are another important trend
in 2030 (Yang et al. 2017). This study discusses in more detail the design patterns of blockchain, IoT,
and supply chains for agriculture, the main solutions that blockchain can provide for IoT challenges, and
the latest blockchain protocols in IoT networks.
The planning stage of melon's supply chain management system is based on IoT and Blockchain.
There are four participating entities; each participating entity has a role and interaction with smart
contracts (Figure 7).

Figure 7. Flowchart of blockchain system in IoT-based melon supply chain management.

This research was conducted in several stages. The first stage was to classify the melon's
temperature, and humidity dataset entered into the NodeMCU ESP8266 Module, then processed into the
temperature and humidity sensors. The sensor used was the DHT11 sensor. The second stage was
implementing IoT devices for all stakeholders in the melon supply chain, including those stored in melon
storage warehouses, distributors, and retailers. Smart contracts then blocked the results of the information

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provided by the temperature and humidity sensors. The third stage was building a blockchain, in which
transaction data related to the freshness of melons was encrypted into the blockchain.

Figure 8. Flowchart of IoT-based melon's freshness monitoring system (retailer).

This study was designed to investigate the importance of integrating blockchain technology and the
IoT in developing intelligent systems and applications in precision agriculture. The integration of these
technologies demonstrates that blockchain performance introduces new solutions to food safety and
transparency issues in IoT-based precision farming systems.
This research is one of the efforts to investigate how the integration between IoT and blockchain
can be implemented in the precision agriculture domain, especially in fresh fruit traceability. Finally, in
this case, the traceability of fresh melons requires more research to study and prove the relationship
between blockchain technology and IoT.

IoT application in Smart Algae Ponds for microalgae biomass production

Microalgae biomass production is promising as a source of food, feed, high value chemicals, and
sustainable biofuels (Yen et al. 2013; Chew et al. 2017). The main challenge to the production of
microalgae biomass lies in the scale-up of production, high production and processing costs. These costs
are mostly caused by energy consumption, operations and production systems that are not controlled
effectively and efficiently (Wibawa et al. 2018). This article reported the development of a precision
agriculture approach through the sensor applications and Internet of Things (IoT) applied in a Smart
Algae Ponds to achieve optimal microalgae biomass production that is controlled effectively and
efficiently.
Design and architecture of IoT for the microalgae cultivation process has been successfully
developed (Figure 9). The monitoring side has succeeded in sending data to the database through the
broker system and the controlling side has succeeded in giving orders to the actuators properly. In
addition, a secure and fast data communication system using AWS IoT Core has been successfully
established. The MQTT protocol can be implemented on the IoT architecture, so that the system can run
effectively and efficiently in the monitoring and controlling of microalgae cultivation process. Sensor
data can be accessed in real time on the LCD and can then be monitored with the IoT system via the
internet (web application).

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Figure 9. IoT architecture in the Smart Algae Pond application.

The microalgae raceway pond with a volume of 120 L was designed and used in the study. The
Smart Algae Pond design includes three main functions (Figure 10): smart mixing to regulate the mixing
of microalgae media/culture (paddle wheel speed) based on the light intensity, smart monitoring and
control of nutrients, CO2 supply and pH, and smart automated harvesting system that are connected to
the IoT architecture (Hermadi et al. 2021).

Temperature

Figure 10. Design of the Smart Algae Pond.

One of the IoT-integrated systems used in this Smart Algae Pond is the smart mixing system. The
principle of the smart mixing is that the paddlewheel mixing speed can be adjusted automatically based
on the light intensity (Hermadi et al. 2021). In this system, sensors for measuring temperature, electric
current and voltage and light intensity sensors can be controlled by the microcontroller, the data from the
readings is sent to ESP32, then ESP32 transfers the data to HTTP protocol to be sent to database MySQL.
This system makes the paddlewheel only move at the appropriate speed based on the light intensity. In
this case when there is no light, for example at night when there is no photosynthesis, the mixing system
will work slower as necessary.
The photosynthesis process can be optimized by controlling the mixing which is automatically
based on the intensity of the incoming light. In addition, using the smart monitoring and control,
photosynthesis and respiration processes are more optimal by controlling the supply of CO2 as required.
The pH value is stable compared to the uncontrolled supply of CO 2. This system allows the cultivation
system to work efficiently and have electricity savings. The design for the smart mixing system is
illustrated in Figure 11.

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Figure 11. Design of the smart mixing (paddlewheel) system (Hermadi et al. 2021).

The development of precision agricultural systems in microalgae cultivation using advanced digital
technology, i.e., IoTbased monitoring and automation of microalgae cultivation operations is very
important to significantly increase the precision and yield with the aim of achieving more effective and
efficient microalgae biomass production (Elijah et al. 2018). Monitoring with sensors will improve the
proper operation and management of environmental factors and controlled microalgae growth and
nutrient supply (Hermadi et al. 2021). IoT has proven to be helpful in making appropriate decisions and
management in microalgal biomass production systems (Esposito et al. 2017).

CONCLUSIONS
The integration of machine learning and the IoT architecture, supported by the information system,
creates a quality monitoring system to deliver real-time transportation information and quality prediction.
The system improves the supply chain actors' capability in logistics-related decision-making. Integrating
blockchain technology and the IoT in developing intelligent systems and applications in precision
agriculture introduces new solutions to food safety and transparency issues in Indonesian farming
systems. The design and architecture of IoT for three important agricultural commodities, i.e., mango,
melon, and microalgae, have been successfully developed. The formulated solution for the mango quality
monitoring problem in a supply chain with long-distance transportation can improve stakeholders'
capacity to make better logistics decisions and increase the quality assurance of the products. This
achievement will lead to Indonesia's better ability to distribute mango across the country, meet export
demand, and ultimately improve agroindustry development. The applications of sensors and IoT could
improve the real-time quality monitoring and automatic control of the product effectively and efficiently.
The blockchain and the IoT integration in developing intelligent systems and applications has been
demonstrated in Indonesia's precision agriculture.

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ACKNOWLEDGMENTS
Y.A. and G.S. express gratitude to the Ministry of Education, Culture, Research, and Technology of the
Republic of Indonesia for the funding support, and Surfactant and Bioenergy Research Center (SBRC)
IPB University for providing research facilities for the Smart Algae Ponds. S.I.K. conveys gratitude to
the Indonesian Agency for Agricultural Research and Development, Ministry of Agriculture for doctoral
program scholarship and research fund for studying researcher. R.F. expresses gratitude to the University
of Banten Jaya for the doctoral program scholarship and research funding support and the Agriculture
and Technology Park IPB University which provided research facilities for IoT and blockchain
application for logistics and supply chain system of melon.

AUTHORS’ CONTRIBUTIONS
Y.A., S.I.K., R.F. acquired funding; Y.A., S.I.K., G.S., R.F. designed research; S.I.K., G.S., R.F.
performed research and analyzed data; Y.A. supervised research; Y.A., S.I.K., G.S., R.F. wrote the
original manuscript; S.I.K., G.S. revised and edited the published manuscript.

COMPETING INTERESTS
Y.A., S.I.K., G.S., and R.F. declare that they have no conflict of interests.

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