This background paper aims to provide anassessment of the issues and options in promoting digitalagriculture in Indonesia, within the broader technologylandscape of the country, with the primary aim of informingthe design of the proposed World Bank investment project.The study considers global best practices as well as thestatus of Indonesia in product traceability, e-commerce,agriculture fintech service providers, weather indexinsurance providers, and precision farming technologyproviders. Although digital agriculture is cross-cuttingacross all commodities, the focus was on the horticultureand small ruminant value chains as those were identified aspriority commodity categories by the Ministry ofAgriculture. The study also offers high-levelrecommendations for policymakers on reforms and programsthat can accelerate the adoption of digital agriculture. Inthe first section, the national context and the importanceof ICT technology in agriculture are summarized. Section twopresents the current landscape of digital agriculture inIndonesia, followed by section three that suggests key areaswhere ICT can play a role in agriculture, based on globalexperience. As scaling up the digitization of theagriculture sector involves a complex set of policy,investment, innovation, and capacity-building measures,several high-level recommendations are provided forpolicymakers and practitioners in the fourth and last section.
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