Bridging the Technology Gap: Smart Farming for Sustainable Palm Oil

Abstract

The Indonesian palm oil industry is currently facing a technological divide between smart farming practices and traditional old farming methods. While large plantation corporations have adopted Artificial Intelligence (AI), Internet of Things (IoT), and drone-based precision agriculture to improve productivity and sustainability, smallholder farmers remain constrained by limited digital access, infrastructure, and financial capacity. This imbalance not only affects production efficiency but also threatens the inclusivity of sustainable palm oil certification and global market access. This study aims to analyze the impact of the digital divide on productivity and sustainability in the palm oil sector and to identify innovative solutions that bridge technological gaps between smallholders and large-scale plantations. Using a Systematic Literature Review (SLR) approach, 25 relevant publications from 2015–2025 were reviewed and synthesized thematically. The results reveal that while smart farming can reduce input costs by up to 20% and improve yield prediction accuracy, adoption barriers such as low digital literacy, inadequate infrastructure, and high initial investment persist. Innovative models such as Smart Cooperative Systems, AI Advisory Platforms, and IoT Leasing Programs demonstrate potential to enhance inclusivity and accelerate digital transformation in palm oil plantations. However, the success of this transformation depends on multi-stakeholder collaboration involving government policy support, academic innovation, and private sector partnerships. Therefore, the shift toward Smart and Sustainable Palm Oil Plantation 4.0 must be accompanied by digital inclusion strategies to ensure that smallholders are empowered as active agents in Indonesia’s sustainable palm oil transformation.