End-to-End Circular Economy in Onion Farming with the Application of Artificial Intelligence and Internet of Things

Abstract

The agricultural sector in Indonesia plays an essential role in economic development and food security in Indonesia, with an average contribution of 13.5% to Gross Domestic Product (GDP). One of the strategic agricultural commodities in daily needs is onions. Agriculture in Indonesia has not been able to produce onions that allow the fulfillment of fluctuations in people's consumption needs. Onion production is sometimes abundant, so it is wasted and makes prices fall. On the other hand, there are times when the availability of onions in the community is deficient, so the price becomes very high. It is possible to solve this by building a system that can integrate all the nodes involved in supply chain management (SCM) and customer relationship management (CRM). Furthermore, this will create a balance between supply and demand, and revive the various micro, small and medium enterprises (MSME) involved in the value chain. The demand is quite significant, forcing Indonesia to still require imports of several agricultural commodities the community needs in their daily lives. However, this is one of the factors related to competitiveness with local farmers' yields and unstable onion prices. This is an early study about on how to model the optimization end-to-end value chain of onions. Optimizing the agricultural cycle in Indonesia, such as optimizing agricultural land, harvest cycles, supply and demand for crops, storage and delivery of crops, and determining commodity prices can improve food security in Indonesia.