IDEAS home Printed from https://ideas.repec.org/a/gam/jijfss/v11y2023i3p108-d1232658.html
   My bibliography  Save this article

A Review of the Implementation of Financial Technology (Fintech) in the Indonesian Agricultural Sector: Issues, Access, and Challenges

Author

Listed:
  • Fathi Rufaidah

    (Doctoral Program of Agricultural Science, Faculty of Agriculture, Universitas Padjadjaran, Bandung 45363, Indonesia)

  • Tuti Karyani

    (Department of Socioeconomics, Faculty of Agriculture, University of Padjadjaran, Bandung 45363, Indonesia)

  • Eliana Wulandari

    (Department of Socioeconomics, Faculty of Agriculture, University of Padjadjaran, Bandung 45363, Indonesia)

  • Iwan Setiawan

    (Department of Socioeconomics, Faculty of Agriculture, University of Padjadjaran, Bandung 45363, Indonesia)

Abstract

Technological developments, especially in the financial sector, are slowly changing the financial industry through digitalization towards fintech. The application of fintech has been introduced to Indonesia in the last few years; however, the existence and development of fintech in Indonesia still needs to be studied further. This review provided a comprehensive overview of farmer technology accessibility, fintech preferences, fintech application impacts, fintech application problems, and challenges in the future. The review data are taken from the primary and secondary data related to fintech from numerous publications in Google Scholar, the interview of Indonesian farmers, and Indonesian Government data, including the Central Statistics Agency. This study confirmed that a fintech provider has been developed in Indonesia. The farmers’ accessibility to fintech was different between urban and rural areas due to the farmers’ education levels and the availability of the infrastructure. Fintech can provide practicality, ease of access, comfort, and cost-effectiveness, and can solve existing problems in Indonesian society. However, several problems arise, including infrastructure and internet access that is less supportive, as well as a lack of education, competent workers, and regulation. Agricultural fintech is a promising business in the future, despite the many challenges that need to be overcome for a stronger agricultural sector.

Suggested Citation

  • Fathi Rufaidah & Tuti Karyani & Eliana Wulandari & Iwan Setiawan, 2023. "A Review of the Implementation of Financial Technology (Fintech) in the Indonesian Agricultural Sector: Issues, Access, and Challenges," IJFS, MDPI, vol. 11(3), pages 1-14, September.
  • Handle: RePEc:gam:jijfss:v:11:y:2023:i:3:p:108-:d:1232658
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7072/11/3/108/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-7072/11/3/108/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yang, Yuxue & Su, Xiang & Yao, Shuangliang, 2021. "Nexus between green finance, fintech, and high-quality economic development: Empirical evidence from China," Resources Policy, Elsevier, vol. 74(C).
    2. Nizar, Muhammad Afdi, 2017. "Teknologi Keuangan (Fintech) : Konsep dan Implementasinya di Indonesia [Financial Technology (Fintech): It's Concept and Implementation in Indonesia]," MPRA Paper 98486, University Library of Munich, Germany.
    3. Svetlana Saksonova & Irina Kuzmina-Merlino, 2017. "Fintech as Financial Innovation - The Possibilities and Problems of Implementation," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 961-973.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Almansour, Mohammed, 2023. "Artificial intelligence and resource optimization: A study of Fintech start-ups," Resources Policy, Elsevier, vol. 80(C).
    2. Charfeddine, Lanouar & Umlai, Mohamed, 2023. "ICT sector, digitization and environmental sustainability: A systematic review of the literature from 2000 to 2022," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    3. Zhang, Dongyang, 2023. "Does green finance really inhibit extreme hypocritical ESG risk? A greenwashing perspective exploration," Energy Economics, Elsevier, vol. 121(C).
    4. Shaorui Xu & Yang Chen & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Green Technology Innovation and High-Quality Economic Development: Spatial Spillover Effect," Prague Economic Papers, Prague University of Economics and Business, vol. 2023(3), pages 292-319.
    5. Husam Rjoub & Tomiwa Sunday Adebayo & Dervis Kirikkaleli, 2023. "Blockchain technology-based FinTech banking sector involvement using adaptive neuro-fuzzy-based K-nearest neighbors algorithm," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-23, December.
    6. Lin, Chia-Yang & Chau, Ka Yin & Tran, Trung Kien & Sadiq, Muhammad & Van, Le & Hien Phan, Thi Thu, 2022. "Development of renewable energy resources by green finance, volatility and risk: Empirical evidence from China," Renewable Energy, Elsevier, vol. 201(P1), pages 821-831.
    7. Xiangyu Tian & Yuanxi Zhang & Guohua Qu, 2022. "The Impact of Digital Economy on the Efficiency of Green Financial Investment in China’s Provinces," IJERPH, MDPI, vol. 19(14), pages 1-18, July.
    8. Lu, Yuchen & Gao, Yuqiang & Zhang, Yu & Wang, Junrong, 2022. "Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines”," Energy Economics, Elsevier, vol. 114(C).
    9. Chen, Zhonglu & Mirza, Nawazish & Huang, Lei & Umar, Muhammad, 2022. "Green Banking—Can Financial Institutions support green recovery?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 389-395.
    10. Mingbo Zheng & Gen-Fu Feng & Chun-Ping Chang, 2023. "Is green finance capable of promoting renewable energy technology? Empirical investigation for 64 economies worldwide," Oeconomia Copernicana, Institute of Economic Research, vol. 14(2), pages 483-510, June.
    11. Keliang Wang & Yajing Bian & Yunhe Cheng, 2022. "Exploring the Spatial Correlation Network Structure of Green Innovation Efficiency in the Yangtze River Delta, China," Sustainability, MDPI, vol. 14(7), pages 1-20, March.
    12. Olha Popelo & Maksym Dubyna & Nataliia Kholiavko, 2021. "World Experience In The Introduction Of Modern Innovation And Information Technologies In The Functioning Of Financial Institutions," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 7(2).
    13. Su, Yifan & Xu, Guanghua, 2022. "Low-carbon transformation of natural resource industry in China: Determinants and policy implications to achieve COP26 targets," Resources Policy, Elsevier, vol. 79(C).
    14. Shaolong Zeng & Qinyi Fu & Fazli Haleem & Yang Shen & Jiedong Zhang, 2023. "Carbon-Reduction, Green Finance, and High-Quality Economic Development: A Case of China," Sustainability, MDPI, vol. 15(18), pages 1-22, September.
    15. Zhang, Yonggang & Dilanchiev, Azer, 2022. "Economic recovery, industrial structure and natural resource utilization efficiency in China: Effect on green economic recovery," Resources Policy, Elsevier, vol. 79(C).
    16. Dena BATEH, 2019. "Is The Impact Of Blockchain And Cryptocurrencies Going To Be As Disruptive As Expected By 2030?," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 535-549, November.
    17. Zhou, Guangyou & Zhu, Jieyu & Luo, Sumei, 2022. "The impact of fintech innovation on green growth in China: Mediating effect of green finance," Ecological Economics, Elsevier, vol. 193(C).
    18. Phemelo Tamasiga & Helen Onyeaka & El houssin Ouassou, 2022. "Unlocking the Green Economy in African Countries: An Integrated Framework of FinTech as an Enabler of the Transition to Sustainability," Energies, MDPI, vol. 15(22), pages 1-28, November.
    19. Li, Songran & Shao, Qinglong, 2022. "Greening the finance for climate mitigation: An ARDL–ECM approach," Renewable Energy, Elsevier, vol. 199(C), pages 1469-1481.
    20. Mirza, Nawazish & Umar, Muhammad & Afzal, Ayesha & Firdousi, Saba Fazal, 2023. "The role of fintech in promoting green finance, and profitability: Evidence from the banking sector in the euro zone," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 33-40.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijfss:v:11:y:2023:i:3:p:108-:d:1232658. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.