Not only Bitcoin, Blockchain is also Potential for Agriculture

in #blockchain6 years ago

According to World Bank data, Indonesia's economy is currently ranked 16th in the category of the world's largest economy. As many as 33% of the workforce works in the food and agriculture sectors.

In addition, as much as 13.95% of Gross Domestic Product (GDP) came from the food and agriculture sector, amounting to US $ 129.6 billion.

As an agricultural country, various challenges faced by Indonesia, among others, rice productivity from Indonesian farmers are still low (14.5% lower than Vietnam), making production costs the most expensive in Asia according to data from the International Rice Research Institute (IRRI).

In addition, quoted from McKinsey Research, the low efficiency of the distribution chain between farmers to consumers also results in Indonesian farmers still having to face losses in terms of post-harvest quality degradation by 20% annually.

These challenges, among others, stem from data inequality and information inequality related to capacity, market and financing for all players in the agricultural sector.

The development of blockchain technology can be a solution to the real challenges facing Indonesia in this sector. That was aimed at by HARA, the first blockchain project to create positive social impacts in Indonesia.

Blockchain is simply a data structure that cannot be changed, can only be added. Every data from the blockchain is connected to each other. So if there is a change in one block of data, it will affect the next data.

By using blockchain as the technology behind decentralized data exchange in the food and agriculture sectors, HARA seeks to address the problem of availability of asymmetric information, which prevents businesses in the supply chain from being more efficient and effective.

As one of the most respected economists in Indonesia, Chatib Basri, who had served as Minister of Finance of the Republic of Indonesia in the United Indonesia Cabinet II, saw the crucial role of blockchain technology in increasing Indonesia's agricultural productivity.

"The development of blockchain and digital technology will undoubtedly help drive the Indonesian economy through simplifying bureaucracy, cutting transaction costs, and making the transaction process faster," said Chatib, who officially joined as HARA's Board of Advisors.

He mentioned, in this case, the HARA blockchain will help farmers in Indonesia increase their productivity, cut transaction costs and increase their income.

Chatib himself admitted that he was honored to be part of the HARA advisor. He hopes his contribution to the HARA Board of Advisors can contribute to the implementation of blockchain technology for agriculture.

He believes, the use of blockchain technology can revolutionize the agricultural sector through data availability and information sharing. Therefore, HARA invites all stakeholders in the agricultural sector, including the government, financial institutions, and non-profit organizations to join in the HARA ecosystem which is sustainable.

Meanwhile, HARA's CEO Regi Wahyu said that he was honored to be directly guided by Chatib Basri in an effort to create a breakthrough in the field of agriculture.

"Through blockchain technology, it will have a positive impact on the agricultural sector in Indonesia and support Indonesia to achieve its vision as a world food storage in 2045," Regi said.

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