Enabling Indonesia’s small farmers to embrace innovation

As agricultural technology advances, small farmers in Indonesia are being left behind—but a new report reveals practical solutions to bridge the gap between farmers and tech innovators.

Indonesia’s 17.2 million small farmers help feed a population of 280 million, yet many still rely on traditional practices. Improving access to tech-enabled innovations could increase productivity and market access, boosting incomes and enhancing food security.

Trisna Mulyati, a Ph.D. candidate at the University of Technology Sydney (UTS) and lead author of the report, understands these challenges firsthand. Growing up in Aceh province in western Indonesia, she witnessed how small farmers lacked access to modern tools and innovations.

“My uncle is a farmer and in more than 30 years little has changed—if anything, things are worse. We need an approach where the farmer’s point of view is better understood, where they have a greater voice, to combat ‘farmer exit’ and empower intergenerational farming.

“There’s enormous potential for technology-driven growth, but AgTech startups need to go beyond ‘fly-in, fly-out’ models. Farmers need long-term partnerships, not one-time interventions.”

Agricultural technology, or AgTech, refers to a wide range of tools and techniques that improve efficiency, productivity, and sustainability in farming practices. It includes precision agriculture, biotechnology, automation and data analytics, using tools like AI, sensors, drones and GPS to optimize crop growth and improve resource management.

The report, “Transitioning future small farms in Indonesia: Ten best practices for agritech startups & wider ecosystems,” was launched at the Australian Consulate General in Bali on 26 February. An online workshop is scheduled for 10 April to launch the Indonesian translation of the report.

The report calls for stronger engagement between tech startups, NGOs, and policymakers to help farmers overcome adoption barriers. It outlines ten best practices to enable and shape Indonesia’s rural startup ecosystem.

The research is based on interviews with 131 stakeholders, including farmers, startups, and NGOs in Jakarta, West Java, Bali, and Aceh, who provided deeper insights into how local knowledge can shape more effective technological solutions.

10 key recommendations to drive change include:

• Arrange on-farm demonstrations
• Offer insights that take the farmer’s point of view
• Collaborate to enable effective farm financing and advisory
• Create both in-person and online interactions
• Prioritize farmer return on investment (ROI)
• Aim for sustainable and seasonal growth
• Leverage blended capital
• Collaborate with NGOs to advocate for policy change
• Collaborate with hubs of farmers
• Be authentically sustainable

The research was supported by the Australian Government Department of Foreign Affairs and Trade (DFAT) through the Australia-Indonesia Institute, Lestari, a sustainable innovation hub run by the Pijar Foundation and other Indonesian partners.

Australia’s Consul-General Jo Stevens, who attended the Bali launch, reinforced the report’s significance.

“This initiative highlights DFAT’s commitment to fostering international collaboration. It’s about ensuring a prosperous future for both Indonesia and Australia,” she said.

Building on this, UTS and Pijar Foundation have recently signed a memorandum of understanding to explore future research, education and engagement collaborations that advance their respective innovation ecosystems.

Associate Professor Martin Bliemel, Director of Innovation at the UTS Transdisciplinary School, said the report serves as a guide-map, not just for Indonesia but for AgTech innovators and rural communities worldwide.

“By moving away from one-size-fits-all startup models and embracing farmer-driven innovation, Indonesia has the chance to build a resilient agricultural sector—one that prioritizes sustainability, empowers small farmers, and secures food production for generations to come.”