Digital Transformation of Subsidized Fertilizer Distribution:  Evidence From Farmer Groups in Rural Eastern Indonesia

Soulthoni, Hannin Pradita Nur; Suaib, Eka; Jabar, Aryuni Salpiana

Digital Transformation of Subsidized Fertilizer Distribution: Evidence From Farmer Groups in Rural Eastern Indonesia

James Alexander Gordon on 28th November 2025

Author Information

Hannin Pradita Nur Soulthoni, Halu Oleo University, Indonesia
Eka Suaib, Halu Oleo University, Indonesia
Aryuni Salpiana Jabar, Halu Oleo University, Indonesia

Abstract

This study examines the implementation and impact of TaniFlow, a web-based information system designed to improve subsidized fertilizer distribution among farmer groups in Puusangi Village, Konawe Regency, Southeast Sulawesi, Indonesia. Using a qualitative descriptive approach, data were collected through in-depth interviews, participant observation, and document analysis involving 15 informants, including farmer group administrators, farmers, extension officers, village officials, fertilizer distributors, and district agriculture staff. The findings show that TaniFlow transformed a manual, paper-based distribution system into a more efficient, accurate, transparent, and accountable digital mechanism. Its main features, including member registration, automated quota calculation, real-time distribution recording, and automated report generation, reduced administrative errors, data duplication, quota disputes, and opportunities for fertilizer misuse. The system shortened the distribution cycle from two to three weeks to only three to five days and enabled better monitoring by relevant stakeholders. Improved timeliness and accuracy of fertilizer allocation also supported better crop management, particularly for rice and maize farmers, contributing to perceived improvements in productivity and farmer welfare. The study concludes that digital transformation at the farmer group level can strengthen subsidy governance, improve distribution efficiency, and support rural agricultural development.