Proposed Design of Blockchain Technology for Rice Supply Chain System in Indonesia

Abstract

The agricultural commodity supply chain is unique because it still undergoes metabolism after harvest, so it is easily damaged and depends on the climate and season. The rice supply chain in Indonesia has many stakeholders from upstream to downstream, making it much more complex. The challenge is that many activities make it difficult to trace materials, process flows, and information flows. This condition resulted in an inefficient rice supply chain and no upstream and downstream transparency. This paper aims to provide a proposal for an integrated rice supply chain design based on blockchain technology so that it can increase added value and product competitiveness. Based on the study’s results, the rice supply chain comprises six main stakeholders: farmer groups, collecting traders, the milling industry, distributors, Bulog (National Logistics Agency), and retailers. This paper describes the blockchain technology design to be implemented in the rice supply chain. Blockchain technology has the advantage because the historical information recorded for each stakeholder can be distributed to other stakeholders so that the flow of information can be distributed to all stakeholders, making it more transparent. The application of distributed storage has resulted in blockchain technology having advantages in data storage and security.