TRACEABILITY SYSTEM IN THE RED CHILI COMMODITY
SUPPLY CHAIN BASED ON BLOCKCHAIN TECHNOLOGY
Introduction:
Indonesians are identified as among the world's biggest fans of chili peppers, both used
in fresh and processed forms (Palar and Tangkere 2016). Most Indonesians consume chili in
its fresh form (Farid and Subekti 2012). Given the characteristics of agricultural products
that are generally perishable, this causes the price of chili to be unstable. Consumption of
large red chilies in Indonesia has the highest consumption level among other types of chilies,
this shows that red chilies are a horticultural commodity that is much liked and its
consumption is increasing (Sholikhah et al. 2016). The national availability of red chili
based on the amount of chili production continues to increase every year (Horticulture
2019). The amount of availability and consumption of red chili can cause variations in the
price of red chili both at the farmer and consumer levels, causing the average price per year
of red chili to experience a trend that always fluctuates (Saptana and Saliem 2016). Chili
occupies an important position in the food menu, although it is only needed in small
quantities, namely only 3.04 kg/capita/year (BPPM Kemendag 2019), but almost all dishes
in Indonesia use chili (Sholikhah et al. 2016).
Based on data from the Ministry of Agriculture, the total production of red chili in 2017
was 1.20 million tons and in 2018 was 1.20 million tons and produced in 2019 was 1.21
million tons. For production in 2020, it increased by 1.26 million tons, and increased to 1.36
million tons in 2022, as shown in Figure 1.
Based on data from the September 2021 Socio-Economic Survey (Susenas), the average
per capita consumption of red chili commodities in Indonesian society during the month
reached 0.15 kilograms (BPS 2022). The high level of red chili consumption in Indonesia
can be attributed to the culinary culture of the people. Indonesia uses red chili peppers as a
basic spice or flavoring for dishes (Yusral 2018; BPS 2022). Because it is a class of
vegetables that are consumed all the time, large red chili peppers will continue to be needed
by the community with increasing amounts along with the growth of the population and the
national economy (Yusral 2018).
If calculated based on the Interim Population Projection 2020-2023 (Mid-year/June),
the consumption of red chili by the household sector in 2021 reached 490.83 thousand tons.
Based on the infographic on the side, the consumption of red chili by the household sector in
2021 has increased by 7 thousand tons when compared to the previous year. Large chili
consumption from the h o u s e h ol d s ec t o r itself contributed 72.94 percent of the total
large c h i l i c o n s u m p t i o n (BPS 2022).
The price of chili peppers is usually formed at the wholesaler level (Irawan 2016).
This causes frequent fluctuations in commodity prices. This happens because through their
network, large traders have the convenience to obtain information regarding the supply and
demand situation (Kusdiartini et al. 2017). Another cause of price distortions is the play of
several business groups that have the power to control prices and markets. Large traders can
hold their commodity stocks or release their commodity stocks to unilaterally influence
commodity price formation (Untari and Vellema 2022).
Empirically, the market structure of agricultural products, especially horticultural
commodities, tends to be oligopolistic (Kunizaki et al. 2022), so that farmers as producers
always have a relatively weaker bargaining position (Muslim and Susilowati 2018). Other
farmer-trader problems arising in the chili supply chain include farmers' weak bargaining
position; farmers' limited commitment to provide consistent supply due to price changes;
and payment delays (Morgan and Shearer 2007). These problems are caused by the lack of
data transparency regarding the amount of production, production stocks, and consumer
demand that describes the conditions of the chili supply chain (Morgan and Shearer 2007) in
fact. This becomes a commodity for price games among large traders and middlemen,
leaving farmers and consumers victimized (Jensen et al. 2014).
The sale of chili peppers in a fresh state is very promising, and if everything goes
according to plan, profits will be obtained in the not too distant future (Yasami 2013). Water
loss from agricultural goods can result in reduced yields, both qualitatively and
quantitatively (Taufik 2011). The problem is significantly exacerbated during the main
harvest, when supplies are abundant and prices are low, with many farmers suffering
financial losses as a result. Meanwhile, the yield of red chilies in Magelang district has not
been maximally utilized because many chilies are rotten, especially during times of
abundant production. Due to limited knowledge and skills, they are not able to process the
chili into food products that can increase the shelf life of the crop and make the chili more
durable. It is therefore important to know the proper handling practices required for
harvested red chilies to reduce post-harvest losses thereby increasing profits for handlers in
developing countries.
Technology as part of agricultural development to increase productivity and farmers'
income. There are at least 5 (five) absolute conditions that must be met so that agricultural
development can grow and develop progressively, namely: (1) a market for agribusiness
products, (2) ever-changing technology, (3) local availability of production facilities and
equipment, (4) production stimulation for producers, and (5) transportation facilities
(Mosher 2018).
One of the factors contributing to the adoption of technology use is the penetration of
internet users (Ho et al. 2007). According to data (APJII 2022), based on the results of the
APJI survey and Indonesian polls, the number of internet users in Indonesia in 2018 was
132.7 million. This figure increased in 2019 when the internet penetration rate in Indonesia
was recorded at 150 million people. In 2020 as many as 175.4 million people, then in 2021
as many as 202.6 million people and in 2022 as many as 204.7 million people.
The rapid growth of internet users in Indonesia has influenced various industry sectors
to take advantage of the information revolution provided by the internet, including the
agribusiness sector. Some experts say that the internet has the ability to improve
performance in the agribusiness sector, among others through time savings due to available
information (Rolfe et al. 2003), the creation of additional markets for inputs and outputs
(Gabriele 2004), and increased competitiveness (Courtright 2004; Smith et al. 2005). While
Nistor et al. (2010) added that the agribusiness sector has the potential for the application of
technology that refers to the use of the internet for markets, buying and selling goods and
services, exchanging information, and creating and maintaining web-based relationships
between users (Goldsmith, Ronald 2000; Cloete & Doens 2008; Manouselis et al. 2009).
This also opens up opportunities for farmers to interact directly with consumers, be it at the
retail level or housewives. In addition, the development of online transportation facilities,
such as Go-Jek and Grab in the country can realize this concept without depending on the
availability of special expedition facilities to deliver goods ordered by consumers. The most
important thing is that there is price transparency and consumers agree to it. This further
emphasizes the importance of information transparency in the red chili supply chain.
It is critical to track detailed information in the entire supply chain of production,
processing, warehousing, transportation and retail. Establishing an accurate and effective
food safety traceability system has become a key solution to food safety issues. Blockchain
represents a promising alternative solution that can be applied to various industries. This
solution aims to guarantee the distribution of information and the integrity of traceability
data by storing it in a transparent distributed ledger, as requested by consumers (Baralla et
al. 2019).
Traceability is one way to provide more transparency, and it is said that by increasing
transparency, supply chain issues can be better mapped and understood, ultimately helping
to improve the economic and social impact of the supply chain (Gonzálvez-Gallego et al.
2015). Blockchain offers a system of information transparency that is reflected in its
Distributed Ledger Technology. Another advantage is that the exchange of information will
be stored by all actors in the supply chain, where information transparency occurs and it is
almost impossible to manipulate the transaction information that has occurred. Thus,
misleading information on the availability of red chili in the market can be prevented.
The main problem in the development of chili agribusiness is the lack of variety,
quality, continuity of supply, and quantity in accordance with market demand, especially for
modern market purposes. (Saptana et al. 2016). This problem is caused by the lack of
coordination between agribusiness actors, where the structure of the chili commodity
agribusiness becomes very fragile and the coordination of supply chain management
becomes very weak so that in the end the competitiveness of the chili commodity becomes
weak. In the case of STA (Agribusiness Terminal Station) for example, farmers in the
morning bring their crops without knowing the certainty of the arrival of buyers, the
certainty of the transaction and also the certainty of prices. In the afternoon, the farmer has
no bargaining power to sell his crop. He will sell at Any price level given by the middlemen
is considered impossible to bring back home. One of the concepts offered in this study is to
increase the role of farmers in the supply chain. Farmers are expected to have the skills to do
things that are usually done at the wholesaler level, such as sorting, grading and sizing as
well as packaging and labelling, so that yield losses and losses can be minimized at the farm
level and farmers benefit from these activities in the form of increased value of their
commodities.
1.1 Chili Red
Chili (Capsicum annuum L.) is a plant that belongs to the Solanaceae plant family.
Chili peppers contain a chemical compound called capsaicin (8-methyl-N-vanillyl-6-
nonenamide). In addition, it also contains various compounds similar to capsicin, called
capsaicinoids. Meanwhile, chili is a buni fruit with a lanceolate shape, bright red, and spicy
taste. The pulp is in the form of waterless pieces. The seeds are numerous and located in the
fruit chamber (Arah et al. 2015).
Chili plants can thrive in various altitudes ranging from lowlands to highlands
depending on the variety. Most of the chili pepper producing centers are in the highlands
although in hot lowlands satisfactory results can also be obtained but in mountainous areas
the fruit can be larger. This spicy fruiting plant is widely used as a condiment throughout the
world (Parker and Maalekuu 2013).
1.2 Traceability
Like most highly perishable agricultural products, red chili peppers also require proper
post-harvest handling techniques. One of the concepts and instrumentation of food quality
and safety suggested to support and guarantee food quality is the provision of complete
information on the position of a product and the distribution channels taken, thus facilitating
product tracing efforts.
This concept is called system traceability (Raspor 2005). The study by McMeekin et
al. (2006) shows that the main concern of traceability is based on the need to withdraw food
products from the market (recall procedures), especially for products that are suspected of
having potential hazards to human health. Thakur and Donnelly (2010) also conveyed the
same point, where traceability is considered as a risk management tool for a food business
organization to recall a product identified as unsafe.
With a traceability system, the distribution of information will occur fairly and evenly
to all parties in the supply chain. So that information related to supply and demand will
describe the actual conditions and in real time. These conditions will form a price
configuration that is close to ideal.
However, there is no specific traceability methodology that can be followed by all
food organizations (Folinas et al. 2006). A food organization is free to choose a suitable
mechanism to ensure an efficient traceability system for their products. Theoretically, the
efficiency of a traceability system depends on the ability to collect information on the
quality and safety of the product (Folinas et al. 2006). Larsen's (2013) study shows that there
are several methods of collecting information to support traceability, ranging from paper
documents to more complex ones based on information technology. Senneset et al. (2007)
also showed that the development of an information technology-based traceability system at
the UK Food Standard Agency was more effective than a paper-based traceability system.
Traceability is defined as a requirement that companies must have to control and store
information through a unique identity attached to the product regulated in ISO 9000: 2000.
According to Christiansen (2016) traceability is also defined as, "Traceability is the ability
to identify and trace the history, distribution, location, and application o f products, parts,
and materials to ensure the reliability of sustainability claims". Furthermore, Farooq et al.
(2016) also described that traceability system is an effort to control the process of a food
product and safety system that is important for sustainable social development in the food
industry. This concept is also defined by Hudrea and Authority (2007) based on several
criteria, namely: the content of the traceability channel, the level of traceability, the
usefulness of traceability, the structure of traceability, and the direction / purpose of
traceability itself. Then Blaauboer et al. (2007) in their empirical research used an
exploratory approach regarding decision-making practices and concluded what factors
influence a traceability decision maker managers in adopting this traceability system. Mai et
al. (2010) also investigated the benefits of traceability implementation with a case study in
the seafood industry using the cost-benefit analysis (CBA) method to determine the initial
estimate of net benefits and costs distributed along the supply chain network.
ISO 22005 (2007) as a standard provision that is widely used in the world, says that in
a traceability system, the organization must at least be able to identify who the supplier is
and to whom the product is distributed, in the principle of one step forward and one step
backward. ISO 22000 (2005) also states that every organization or industry must create and
implement a traceability system that can identify product units and product batch codes that
link raw material, process and distribution records. However, Folinas et al. (2006) noted that
there is no specific traceability methodology that can be followed by all food organizations.
A food organization is free to choose a suitable mechanism to ensure an efficient traceability
system for their products.
The concept of traceability and the application of technology has been growing in the
food supply chain in recent years. This is related to the demands of the times to provide safe
food for consumers. Hobbs (2003) states that a good traceability system in the food supply
chain has the potential to reduce the risks and joint costs of damaged food products. Such as
reducing the likelihood of spoilage, reducing or avoiding health costs, reducing loss of labor
productivity, reducing increased safety costs from the widespread development of diseases
that damage food (March 2007). Langinier and Moschini (2002), in their study, concluded
that traceability systems, especially electronic-based ones, have the potential to improve the
efficiency of production, such as reducing ordering, transportation, and storage costs, as well
as assisting the implementation of just-in-time in corporate management. Improved planning
can reduce the cost of the distribution system, expand sales of value-added products and
complement consumer confidence (loyalty) to the product (Golan et al. 2004).
Another reason from an economic point of view for adopting a traceability system is
to classify the responsibility of the shared risk of unsafe food product problems resulting in
financial losses to the company, such as: penalties, loss of market, loss of reputation or loss
of brand image. The implementation of traceability systems at the supply chain level has the
potential to reduce costs to downstream actors (such as suppliers) from monitoring the
activities of upstream actors (such as packaging houses) (Hobbs 2003; March 2007).
Some of the scientific literature examines the cost-benefit of implementing a
traceability system (especially in agricultural fresh produce supply chains), including: Mai
et al. (2010) examined the benefits of traceability in the fish supply chain, examining the
traceability system from a cost-benefit relationship that has the potential and provides
benefits in the reduction of costs. Furthermore, Li (2013) explored the cost-benefit in the egg
supply chain, namely examining the case of the supply chain. Eggs based on the actual
analysis of cost-benefit from an economic point of view resulted in a traceability system
structure, traceability system data and information, traceability techniques in the egg supply
chain network at the Van Beek business group, as well as displaying profit calculations on
the traceability system to increase market share.
From previous studies from a business perspective, it is concluded that traceability
systems in supply chains generally focus on the need or potential benefits of implementing
traceability systems in the supply chain as well as the cost of instruments implemented in
the traceability of the supply chain network, as summarized in Table 5. Based on Mai et al.
(2010) and Li (2013) some of these studies a r e a t the same level, examining electronic-
based instruments (such as barcodes and RFID) in food supply chain studies that focus on
individual aspects of the food product network.
1.3 Blockchain Technology
Blockchain technology is a new technology, so over time the potential of the
technology is increasingly recognized. Blockchain technology is one of the most disruptive
technologies. Tapscott (2017) describes blockchain as a revolutionary technology in the 21st
century. According to Swan (2015) blockchain has the potential to change various lives both
social, economic, political, governmental, legal and cultural.
Blockchain technology is the underlying technology originally used for digital
currencies such as Bitcoin (Nakamoto 2008). Further developments were published by
Delmolino et al. (2018) in their whitepaper on Ethereum. In the whitepaper, blockchain is
introduced as the underlying technology to which data and programming can be added,
called smart contracts, thus enabling the creation of decentralized application platforms that
go beyond just cryptocurrency exchange. Thus, the potential use of Blockchain technology
has begun to penetrate into several non-financial industries such as transportation,
pharmaceuticals, law, regulation, and agriculture.
As a new technology, Blockchain is constantly undergoing updates so that more and
more small components can be considered in the use of this technology. Therefore, in
developing a Blockchain-based system, we need to pay attention to the architectural design
that suits the case study at hand.
According to Xu et al. (2019), in building a system for searching the chain of origin of
a product, it is necessary to pay attention to several layers as shown in Figure 5. Users,
traceability providers, and blockchain admins have their own user interface (UI) connected
to the management layer that can access data management. Data management in this
architecture is more specifically divided into 2 layers, namely the data layer which is the off-
chain storage, and the Blockchain layer for on-chain data.
Based on property groups, the blockchain system architecture can be divided into six
layers. They are the data layer, network layer, consensus layer, incentive layer, contract
layer, and application layer, as shown in Figure 6 (Yuan and Wang 2016; Li et al. 2020).
The previously open and decentralized blockchain system used for Bitcoin, for
example, was a permissionless system. This meant that any user could join or leave the
network at any time, and they had full read and write access to the ledger. A new
permissioned blockchain was developed not long ago (Wust and Gervais 2018). This
blockchain allows administrators to manage who can access the system and what rights they
have.
Blockchain technology is a decentralized data system, and as such has various
features, some of which are defined in (Wust and Gervais 2018). These properties include
public verification, transparency, privacy, integrity, redundancy, and trust anchors. Anyone
can check whetherthe current state of the system is accurate or not thanks to the blockchain
technology network. All stakeholders in the blockchain technology network will eventually
have the same view of the ledger and will be able to verify that the status of the ledger has
been updated according to the protocol at any time. In a centralized system, many observers
may come to completely different conclusions about the state of affairs. They may not be
able to check that all state transitions are done appropriately, which is why trust in a central
entity is necessary to provide them with the appropriate conditions.
This technology has successfully solved several problem domains, one of which is
traceability. Blockchain technology differs from centralized systems in that it is
decentralized. There are several advantages of using blockchain technology as a tool in
traceability, some of which are as follows:
a Tempering Data
Blockchain technology can be used to reduce the likelihood that data on traceability
systems will be tampered with. If someone tries to manipulate data in blockchain
technology, they need to manipulate all the nodes, metadata, and transaction records. When
the system uses dispersed and distributed data like blockchain technology, this fraud
becomes more difficult to commit.
b Processing and Administration Costs
When implemented in blockchain technology, the use of smart contracts will result
in more efficient and less complex transaction procedures. Time-consuming. When using
manual or conventional means of payment, there are usually taxes or fees charged to the user
as well as third parties for the transaction to be recognized. The fact that there is an
intermediary contributes to the increased amount of time required to complete the
transaction procedure.
c Data Distribution
At each node of each stakeholder organization connected to the blockchain technology
system network, data will be stored (verification, transparency).
d Better traceability
In fact, we can use regular information systems for traceability. On the other hand, thanks to
the capabilities of blockchain technology, we can provide more valid data in real time.
e Master data
While someone can commit a crime by altering information, it is much easier to identify
them when using blockchain as it has auditable master data payments. Customers will
benefit from this method as well as an increase in their level of trust.
f Scalability
Blockchain supports the development of system automation, such as integrating it with the
internet of things (IoT) to collect data in the field.
The utilization of Blockchain technology in the system is fraught with a number of
difficulties, in addition to the many advantages it offers. These problems need to be solved
before the system can be accepted by its users. Some examples include the following:
a Information and Technology (IT) Support.
Everything should be smooth with IT. Basic things like electricity, internet, and other
support should not be a problem for system users.
b Standard Data.
We must have data standards that are applicable to all stakeholders.
c Data privacy
When data is entered into the network, users must understand that the data will be stored
on every node in the network, which cannot be changed.
d Technical challenges.
As this is a new technology for all, we need to adapt quickly.
1.4 Blockchain-based Traceability System
Blockchain can be seen as a distributed database: the chain of blocks is chronological
and each block stores all network activity information since the block was added to the chain
(Bogart and Rice 2016). All the data in the blockchain is public, and any user can add data to
it by form of transactions that are identifiable data packets in the system, any user can check
and copy this data at any time, but no one can change it. Therefore, the blockchain is an
immutable record of the history of its network, which can be shared among all nodes in the
system. Blockchain-based systems eliminate the need for a centralized trust authority.
Instead, trust is achieved through a "minning process" that guarantees the security and
validity of information added to the chain among the nodes in the system.
Blockchain-based systems rely on miners to combine transactions into blocks and add
them to the blockchain. Once a transaction is confirmed by a sufficient number of nodes, it
becomes a valid and permanent part of the database (Abeyratne & Monfared 2016). To
continuously validate and maintain consistency data, the system rewards miners for adding
valid blocks to the chain. Moreover, no single miner can change or add invalid data without
being detected by other miners as a potential threat. Therefore, this method significantly
increases transparency, trust, and traceability in a system.
Smart contract is a kind of computer program that runs on the blockchain, executed by
all consensus nodes. It consists of program code, storage files. Any user can create a contract
by posting a transaction to the blockchain. The program code of a contract is fixed when the
contract is created, and cannot be changed (Delmolino et al. 2016). Its program logic is
executed by miners who reach consensus on the execution results and update the blockchain.
The contract code can be executed when it receives a message. A smart contract can read
from or write to its storage files, while executing its code. In fact, the entire state of a smart
contract is open to all users in the system. Smart contracts are agreements between two
people in the form of computer code, these contracts are stored in a public database and
cannot change. In this research, the platform used in the blockchain technology is Polygon
and uses the solidity language to write the smart contract. To write smart contracts on
Polygon, the solidity language is used. Transactions that occur in smart contracts only occur
when the requirements in the agreement are fulfilled, there is no third party so there is no
problem with trust. Polygon Network is a decentralized protocol for building and connecting
Ethereum-compatible blockchain networks (Madumidha 2019). Polygon was created to
provide a solution to several blockchain-related issues such as high gas fees and slow speed
without compromising security (Kravenkit and So-In 2022). Polygon Matic is built on the
etherium network but operates separately from Etherium, has its own Blockchain network
and its own applications.
Polygon provides several layer 2 solutions such as commit chains and side chains,
which are blockchains that run in parallel with the Ethereum mainnet. The main difference
between these two systems is that commit chains can internalize the security of the
Ethereum network. This allows developers to take advantage of Polygon's scalability while
still enjoying the security provided by the Ethereum network. Through Polygon, developers
can improve its application performance to make transactions faster and gas fees cheaper
than Ethereum (Qijun et al. 2019).
1.5 Identification System
System design and analysis that follows the SDLC (system development life cycle)
life cycle of the system is the idea, human/user needs, system needs, design, evaluation, and
maintenance of the deployment (Charles 2006; Halog and Manik 2011). The system to be
built needs to be designed using system design steps including determining in advance the
problem boundaries, objectives, expected and unexpected inputs, stakeholders involved,
expected and unexpected outputs, resources, rules, roles, and system weaknesses (Lee et al.
2013; Djatna and Ginantaka 2014). The next step is to analyze the overall needs of
stakeholders to determine the factors that are important to analyze. This research uses
Wasson's (Charles 2006) system analysis and design approach. The system is an integrated
collection of elements or entities, each with defined and constrained capabilities, configured
in various combinations that allow specific behaviors to emerge for command and control by
the user to achieve performance-based mission outcomes in a defined operating environment
with a probability of success (Charles 2006).
1.6 Previous Research
The blockchain system comes with changing the centralized approach into a
decentralized one. In addition to these advantages, several studies on blockchain reveal
various benefits of implementing blockchain technology. According to Biggs et al. (2017),
the benefits of blockchain in the supply chain are transparency, scalability, trust, security,
and opportunities to access new markets. The advantages and benefits of blockchain
technology have an impact on research trends, especially in the field of traceability systems.
According to ISO 22005 (2007) traceability systems are tools that serve to help
organizations operating in the food or feed supply chain to achieve the outcomes identified
in the management system. Blockchain technology is closely related to utilization in
traceability systems, according to Tian (2016) using blockchain enables traceability systems
to provide information to all stakeholders with openness, transparency, neutrality, reliability,
and security in supply chain traceability systems.
Blockchain has gained applications in many fields ranging from healthcare (Angraal
S., Krumholz H. M., Schulz 2017), finance and banking (Guo and Liang 2016; Youn and
Cho 2019), crowdfunding (Cai 2018), business models (Da Silva Momo et al. 2018),
governance (Carter and Ubacht 2018), supply chain (Perboli et al. 2018; Wamba 2020), and
making energy (Goranovic et al. 2017) (Andoni et al. 2019). Some blockchain-based
reviews work in areas such as IoT (Conoscenti et al. 2016), service systems (Seebacher and
Schüritz 2017), and energy (Chitchyan and Murkin 2018; Andoni et al. 2019). Blockchain
has also been applied to applications in the field of agriculture which include resilience food
through traceability of origin, information systems, agro-commerce, finance, crop
certification, and insurance (Yadav and Singh 2019). Thus, agriculture has become a very
promising area for blockchain (Yadav 2019).
Blockchain is a new technology, so the potential of the new technology will emerge
over time. The first sector to implement blockchain was the financial sector. In addition,
blockchain technology is also experiencing growing use in various sectors of the global
economy listed in Table 2 (Sloane Brakeville 2016).
Table 2 Use of blockchain in various sectors of the global economy
1.1 Framework Thinking
This research was conducted through a systems approach. The system approach is
characterized by an assessment of the influential factors in the system and the design of the
model needed as a solution in achieving goals (Eriyatno and Fajar 2007). The research
stages began with needs analysis, problem formulation and system identification. Needs
analysis relates to the needs of elements in the system which in this case are stakeholders
who are directly or indirectly related to the red chili supply chain. Problem identification and
formulation contain the constraints that must be faced in achieving system goals, in this case
increasing the efficiency and effectiveness of the red chili supply chain. System
identification is described through input-output diagrams that illustrate the factors and needs
of the system.
The next research stage is situational analysis and identification of the configuration
and mechanism of the red chili supply chain following the framework of Vorst (2006). The
study material was obtained from the results of literature review and field survey results.
The research stage continued with the system modeling stage (Figure 7).
1.1.1 Verification and Validation
The model verification and validation stage is carried out for model testing before
implementing the model to the real system. A series of appropriate evaluations will
determine the level of reliability of the model at this stage. Verification is the process of
ensuring that the model design (conceptual model) is built correctly while validation is the
process of ensuring that the model is accurate enough for the purpose of modeling, in other
words, building the right model (Robinson 1997).
After the application has been designed, black box testing is carried out, namely testing
the menu functions on the system to see if it runs according to the initial application plan.
Blackbox testing is a software testing method that focuses on the functionality side,
especially on the input and output of the application (whether it is in accordance with what is
expected or not). The testing stage is one of the stages that must exist in a software
development cycle. Blackbox (blackbox testing), a software testing method that focuses on
the functionality side (Iskandaria 2012).
SITUATIONAL ANALYSIS
4.1 Supply Chain Condition of Red Chili
In the consumption center market, the demand for fresh red chili is increasing, so that
the fulfillment of needs is supplied from various regions in Indonesia. Geographically,
Magelang District is located between 110˚ 01' 51" and 110˚ 26' 58" East Longitude, 7˚ 19'
13" and 7˚ 42' 16" South latitude, with an area of 1,085.73 km high. Topographically,
Magelang Regency is a basin-shaped plain because it is surrounded by five mountains
(Mount Merapi, Merbabu, Andong, Telomoyo, Sumbing, and Menoreh Mountains) so that
most of the area is a water catchment area. The soil is also fertile due to the volcanic ash
residue and abundant water sources.
The chili land area in Magelang district is dominated by Dukun sub-district with 512
hectares (ha) and Sawangan sub-district with 462 hectares (ha) for red chili. However,
growing chili peppers has many challenges due to the unpredictable nature of the chili crop,
both in terms of harvest and profit.
The production of red chili from Magelang district is not only to fulfill the needs in the
region but also to meet the needs of large markets, such as Kramat Jati Main Market Jakarta,
Tanah Tinggi Main Market Tangerang and Cibitung Main Market. In addition, there are also
those who aim to meet the needs of red chili in Sumatra Island, such as Palembang, Padang,
Bengkulu, Lampung as well as Batam. The production of curly red chili in Magelang district
is higher than that of large red chili and cayenne pepper.
Magelang district is the second largest chili center in Java. Since 2018, Magelang
district has experienced chili surplus, 24,642 tons per year or 67.46 tons per day.
Geographical support and erratic weather have made the price of chili peppers in Magelang
district abundant but often soaring. In the wholesale market of Sewukan Agrobusiness,
Dukun Subdistrict, Magelang District, the selling price at the collectors' level reached an
average of Rp58,000 per kilogram for super red chili and curly chili. Meanwhile, the price of
red and green cayenne pepper reached Rp40,000 per kilogram. Meanwhile, in traditional
markets, the price of super red chili and curly chili is sold at Rp 60,000 to Rp 62,000 per
kilogram.
However, the increase in chili prices is certainly a blessing for people in agricultural
areas, the slopes of Mount Merapi, Merbabu and the slopes of the Menoreh mountains.
Because so far their biggest commodity besides vegetables is chili. So that the increase in
chili prices is a separate momentum for them to enjoy multiple benefits.
Meanwhile, data from the Magelang District Agriculture Office shows that the
potential for chili production is spread across 19 sub-districts with an area of 4,500 hectares.
The location is at an altitude between 300 to 1,200 meters above sea level. The location in
the highland area is on the slopes of Mount Merbabu covering Pakis, Grabag and Sawangan
sub-districts, and the slopes of Mount Sumbing covering Windusari, Kajoran and
Kaliangkrik sub-districts.
4.2 Chili Pepper Supply Chain Configuration Red
The structure of the red chili supply chain in the research area of Magelang District is
formed by 3 channels. Each supply chain member has its own role in the red chili supply
chain (Figure 13).
Agribusiness Terminal Stations (STAs) built and managed by district and city
Agriculture Offices are responsible for the management of actors in the red chili supply
chain network that are able to distribute products in accordance with the regulations
consumer needs and characteristics. Post-harvest handling of horticultural commodities such
as red chili peppers in accordance with consumer market objectives is a very central function
that is the task of the STA. This includes preparing chilies in fresh condition for the wholesale
market and packaging them for the retail market. One of the STA units in Magelang district
has not been utilized properly in accordance with its mission. As a result, the processes
carried out within the STA are not taken over by supply chain actors either before or after
they occur. The inability of the STA to perform its duties resulted in a significant increase in
the yield loss rate. This is due to the fact that the red chili products sent to the primary
market are fresh.
The information mechanism used in the red chili supply chain mostly comes from
large traders. Price information will be sent to producers (farmers) and consumers through
the STA. The latest price information is available when the product is brought to the STA,
hence there is no guarantee of the current market price of the product. There is no auction
market for red chili, nor is there an agreement between producers, traders, or consumers that
determines the selling price.
4.3 Chain Members Supply
a. Farmers
Harvesting of red chili peppers will take place at a predetermined time, every five days,
and will last for a four-month harvest period. Farmers will sell to collectors during the day
during the harvest season each year. Farmers have direct contact with collectors (Gapoktan)
or large collectors/suppliers in the district. These collectors may be located in the district or
outside. This connection is not only due to family ties, but also because farmers are bound
by loans provided by collectors at the time of planting to provide seeds, pesticides,
fertilizers, and other needs when tending the red chili plants. This connection is made
possible by the collectors.
There was an increase in production, harvest area, and productivity in the six red chili
center subdistricts. On the other hand, production figures tend to remain constant, and the
harvest areas and productivity of red chili and cayenne pepper are not used as a reference
due to virus or bacterial attacks, spoilage, and crop failure. The production level became the
criterion for selecting which subdistricts to include in the final map. In addition to
production, which is also determined by planting area and temperature, the highlands in
Magelang district greatly affect the harvest time and the amount of yield produced. This is
because the time needed from planting to harvesting in the highlands is much longer than in
the lowlands. In the lowlands, the time needed from planting to harvesting is only six months,
meaning that after that period, you need to alternate with other plants. In the highlands, the
cycle time can reach a maximum of one year, which allows continuous production of red
chili peppers.
In addition to planting dates and patterns, planting climate, maintenance and harvest
time also play a role in determining how much red chili will be available. The production
time of red chilies can be as long as 120 days, but the productivity also varies depending on
the type planted.
b. Collectors
The collector is the link in the chain that carries agricultural products. The goods are not
only red chili, cayenne pepper, and green chili, but also carry other horticultural crop
commodities such as cabbage, beans, potatoes, and tomatoes. The overall purchase price to
be given to the farmers is determined by the collectors after the products are reweighed and
sorted. If there are products that do not meet the requirements, they will be isolated and sold
at a lower price than the standard. When farmers hand over their produce to collectors, who
then weigh and pay in cash, the selling price of the farmers' produce is determined by the
current market conditions. Since collectors must maintain a certain overall standard of
products for delivery to the market, they must deliver products every day to prevent losses.
c. Supplier (primary processor)
The supplier (primary processor) or agent is adjusted to the functioning supply chain
network, because there are agents between collectors and wholesalers and there are suppliers
(primary processors) between direct collectors and the red chili processing industry. This
supplier (primary processor) functions as an actor after collectors who can sell fresh red chili
products and processed red chili or initial products. The existence of cooperation or
contracts between suppliers (primary processors) and the industry can increase the added
value or selling value of red chili products in the form of dry preparations.
d. Wholesaler
The wholesalers in the wholesale markets in Jakarta, Cibitung and Tangerang each have
a unique distribution network, stemming from long-standing and trusted relationships with
their customers. The head office will record every supply that enters the wholesale market.
This record includes the type of chili, the price of the chili, the origin of the shipment, and
the name of the buyer. Changes in price and volume of supply will be documented in the
wholesale market administration using weighbridges or handwritten calculations. This will
take place in the wholesale market. However, the supply of red chili products sold from
traders is not well recorded, making it difficult to meet the needs of end consumers
(households) or consumers in hotels, restaurants, and catering businesses. This is because
the identity of the consumers who buy the product is not recorded.
4.4 Supply Chain Entities
1. Products
Fresh red chili is the product referred to in this study. Chili peppers that do not meet the
standard specifications and chili peppers that are not sold during the expiration period
according to the specified time will be processed by farmers/gapoktan into dried chili
peppers.
2. Market
The increasing number of people living in Indonesia every year causes the demand for
chili peppers in the country to also increase every year. If handled and distributed properly,
there is a g r e a t opportunity to develop the red chili market. However, this opportunity
requires farmers, who are the main participants in this supply chain, to be unprotected. The
government, through the Ministry of Agriculture, has issued a policy known as RPH (Price
Reference Pricing), which seeks to protect farmers by setting the lowest price available in
the market. But in practice, the policy has not been implemented at the farm level. The price
of red chili is determined by the price at the trader level as well as the volume of supply, so
the price of red chili is impossible to regulate.
2. Stakeholders
Farmers and collectors are examples of stakeholders involved in the supply chain in the
upstream sector of the market. Farmers are responsible for the cultivation of their own red
chilies. Farmers in Magelang district who cultivate red chili have been in the business for a
long time, so they are able to produce high quality chili and continue the tradition of their
ancestors. In addition, with the help of the Magelang District Agriculture Office, it plays an
active role in motivating red chili farmers to further improve their production performance
by providing input assistance and agricultural counseling. This is possible thanks to the
support from the Magelang District Agriculture Office.
The chili powder industry is one example of a stakeholder that plays a role in the
supply chain. This sector is considered downstream. Individually established SMEs are a
growing sector of the red chili industry. The supply of red chili comes from local red chili
collected from various individuals, then pre-processed by suppliers (primary processors).
Collecting traders are traders who collect products from several farmers and then distribute
them to meet the needs of the red chili industry. People such as farmer groups or gapotan,
collectors, wholesalers, retailers, wholesale markets, and processing industries are part of the
red chili supply chain.
3. Competition Situation
The price of red chili always experiences considerable price fluctuations. Due to
supply shortages, the demand for red chili peppers at the consumer level cannot be met,
resulting in a drastic price increase. The source of the price increase is a shortage of supply.
Even at the last moment, it is not uncommon for the price of red chili to fluctuate. Since
Magelang District is a major producer of red chili, it is well positioned to take on the role of
a standard to measure the level of price fluctuations of red chili throughout Indonesia.
The National Strategic Food Price Information Center noted that the average daily
price of large red chili peppers (per kg) in modern markets in several provinces was
recorded at IDR 80.46 thousand per kg, data as of Friday, December 23, 2022. Overall, this
week's average is down compared to last week's average of IDR 82.78 thousand per kg.
The daily price of large red chili peppers in modern markets in North Sulawesi is the
most expensive in Indonesia with a selling price of IDR 118.35 thousand per kg. Compared
to a month ago, the price of large red chili peppers in this province has not changed. The
highest selling price ever recorded in this region is IDR 118.35 thousand per kg. While in
the modern market of South Sumatra, the price of big red chili is sold at IDR 118.2 thousand
per kg and is the second most expensive in the country. Then in third place, the price of
large red chilies in Maluku is Rp 117.9 thousand per kg thousand per kg, Riau Islands IDR
115.6 thousand per kg, and Lampung IDR 114.8 thousand per kg. Meanwhile, there are 14
provinces with the selling price of big red chili below the national average. The three
provinces with the lowest selling price of big red chili are West Nusa Tenggara, North
Maluku and West Sulawesi.
4.5 Requirements Analysis
Observations were made of the red chili supply chain business process, especially how
farmers and processors carry out post-harvest handling. Meanwhile, in-depth interviews
were conducted with all actors, namely farmers, processors, Gapoktan, and consumers as a
reference for identifying system needs, as shown in Table 11.
As an initial step in the assessment of a system as a whole, a needs analysis is carried
out through the identification of the parties involved directly or indirectly in the formation of
the treacibility system in the red chili commodity supply chain. The needs of the supply
chain actors are as follows:
1. Farmers are the producers of red chili after going through the sorting and grading
process which will be brought to the Gapoktan. The needs of farmers are selling prices
that provide profit, increased bargaining position, transparent price standards and
increased income.
2. Gapoktan is a combination of farmer groups that will weigh the red chili peppers
produced by farmers then display products on the market place, confirm payment for
product purchases from consumers and send products to consumers. The needs of the
Gapoktan are fair selling prices, increased bargaining power, transparent price
standards and increased income.
3. Consumers are buyers who directly transact through the application to be built. The
needs of consumers are reasonable prices according to the quality and availability of
chili.
4. External parties are parties who need data from transactions recorded on the
Blockchain. The needs of external parties are to be able to know the needs of
stakeholders.
4.7 Formulation Problem
In the design of the red chili commodity supply chain treacibility system, the
formulation of problems in the supply chain can be done through initial identification of the
problems that occur, so that a solution or improvement step is needed. The red chili
commodity market tends to be oligopolistic so that the role of traders is very large in the red
chili supply chain. Farmers/Gapoktan sell their crops to the STA in their area without sorting
and grading first. Sorting and grading will be done by big traders who will send chili
products to their intended marketing areas. In this case, it is the traders who determine the
purchase price of chili from the farmers based on information from the STA who follow the
price developments from the Jakarta market. The farmers/Gapoktan as producers always
have a relatively weaker bargaining position. Whatever the price set by the trader on that
day, the farmers/gapoktan will release their harvested red chili products.
4.8 Identification System
In this research, system identification aims as a stage used in the introduction of
system requirements. The cause and effect diagram illustrates the interconnection between
the elements that make up the system derived from the system requirements analysis. The
relationship between elements in the c au sa l loop diagram can be positive or negative or
reciprocal or unidirectional. The results of the initial identification of the causal loop
diagram of the system in the proposed red chili commodity supply chain can be seen in
Figure 14.
Figure 14 Causal diagram
System identification on the input-output diagram describes the identification
scheme based on the inputs and outputs of the model developed with the operation process
in the form of inputs and outputs, each of which has two categories, namely controlled and
uncontrolled.
Controllable inputs consist of the availability of red chili land. Uncontrollable inputs
consist of price fluctuations, fluctuations in consumer demand, and crop yield uncertainty.
The desired output in this study is the availability of chili according to demand, transparency
of information, a transparent market mechanism for all parties and the formation of a fair
price. While the output that is not desired is the availability of chili that is not in accordance
with demand, the absence of information transparency, oligopolistic market mechanisms and
the formation of prices that harm farmers. The results of the identification of the input-
output diagram of the red chili supply chain treacibility system design can be seen in Figure
15.
POSTHARVEST HANDLING OF RED CHILI
Damage that occurs to chili peppers can be in the form of mechanical and physical
damage. Physical damage can be caused by a chili storage environment that is too humid (at
least 90 percent) or high temperatures in tropical environments. Mechanical damage most
often occurs during the packing and transportation process. The spoilage of fresh preserved
chili peppers is evidence of the material damage that has been done. The relative humidity of
the surrounding air should not be lower than 80 percent because low humidity can cause
chili peppers to dry out, resulting in a wrinkled and puckered appearance that indicates that
the chili peppers are no longer fresh (Genanew 2013).
Damage caused by mechanical and physical factors almost always has a very negative
impact. Therefore, proper handling is required from harvest to post-harvest process so that the
quality of chili is maintained until it is sold. Post-harvest treatment is done to facilitate
transportation and marketing, and to extend the shelf life of the product while maintaining
its quality (David 2018).
5.1
Postharvest Handling
The term postharvest in agriculture is defined as various actions or treatments given to
agricultural products after harvest until the commodity is in the hands of consumers. The
term is scientifically more precisely called Postproduction, which can be divided into two
parts or stages, namely postharvest and processing (Zaulia et al. 2006).
Postharvest handling, often referred to as primary processing, is a term used for all
treatments from harvest until the commodity can be consumed "fresh" or in preparation for
subsequent processing. According to Mutiarawati (2007) in general, the treatment does not
change the form of appearance or appearance, including various aspects of marketing and
distribution.
Secondary processing is the act of transforming crops into another condition or form
for the purpose of preserving them, preventing undesirable changes or for other uses. This
includes food processing and industrial processing.
Red chili (Capsicum annum L.) like other horticultural products is a perishable
commodity, so postharvest handling acts as an inseparable link from production activities.
The success of red chili postharvest starts from seed selection, planting, harvesting, after
harvesting, packaging, storage, transportation, to processing the results. All stages that are
carried out correctly and in accordance with procedures will support and provide maximum
results. There are several things that cause post-harvest damage to red chili peppers, That is:
1. This type of damage is caused by pests and diseases, and is usually carried over from
the field. Important pests that usually damage chili fruits include is the fruit fly (Dacus
horsalis hend). Important diseases that commonly attack chilli fruit, causing fruit rot, are
anthracnose (Colletotricum capsici syidow) and phytoptora rot (phytophthora capsici
leonian).
2. Mechanical damage usually occurs during transportation and this type of damage is
estimated to be greater than physiological and physical damage.
3. Physical damage, caused by high relative humidity (above 90%) and tropical
temperatures, can cause fresh red chilies to become soft and swell and eventually rot. In
addition, if the relative humidity is lower than 80%, wrinkling of the chili fruit will
occur.
4. This type of physiological damage is caused by the life processes that take place in the
red chili fruit after harvest. Every 10°C increase in the temperature of the tropical
environment will spur the rate of evaporation (respiration) 2-3 times the original and the
fruit will quickly reach the level of maturity, as a result the damage will accelerate.
5.2
Purpose of Postharvest Handling
Post-harvest handling aims to keep the crops in good condition and suitable for
immediate consumption or for processing raw materials. According to Mutiarawati (2007),
postharvest handling of horticultural products that are generally consumed fresh and easily
"damaged" (perishable), aims to maintain its fresh condition and prevent unwanted changes
during storage, such as bud growth, root growth, twisted stems, wrinkled fruit, tough pods,
greening sweet potatoes, overripe, and others. Treatments can include: cleaning, washing,
binding, curing, sorting, grading, packaging, cold storage, coiling, and others.
To ensure that the chilies are still fresh when purchased, they should be marketed as
soon as they reach their full red color and reach the peak of ripeness. However, marketing
may be delayed, and the fruit intended for marketing may be in a distant location. Chili fruits
are collected when the fruits are still green (unevenly red). Once the fruits reach maximum
maturity, they are picked in preparation for processing.
GHP (Good Handling Practices) principles can be used for chili processing after
harvest. GHP is an effective post-harvest handling strategy that focuses on the use of
technology and the utilization of available facilities and infrastructure. GHP includes the
implementation of post-harvest handling of agricultural products properly and correctly in
order to maintain product quality, reduce losses due to shrinkage and damage, extend shelf
life while maintaining the status of the product being handled, and maintain the status of the
product being handled while maintaining GHP.
Once picked, chili peppers must go through several post-harvest processes, including
sorting, preservation, packaging, and storage before they can be distributed.
a.
Classification
Sorting chili peppers is necessary to distinguish bad chili peppers (those that are rotten,
broken, or bruised) from excellent chili peppers. The purpose of sorting is to achieve a high-
quality yield with a consistent rate of development.
b.
Curring
Pickling is done on chili peppers before processing to optimize the formation and color
stability of the chili peppers. The goal here is to reduce the heat generated by the field. In
most cases, the farmer is the one responsible for curing the chili peppers by spreading them
out in the shade.
c.
Packaging
Chili packaging aims to prevent the chili from being damaged during transportation.
Packaging is also done so that the quality of chili before marketing can be protected. David
(2018) suggests that packaging can extend the shelf life of chili peppers. Good packaging
can prevent yield loss, maintain quality and appearance, and extend the shelf life of
materials (Rumana and Yuniarsih 2005). In addition, packaging is one of the ways to
prevent chili from rotting and wrinkling due to the inhibition of the respiration and
transpiration process (Zaulia et al. 2006). The amount of chili to be packaged is taken into
account in designing the form of packaging that will be made from various materials. The
chili is arranged in such a way that its volume can be accommodated into the packaging that
will be used.
d.
Storage
Storage of red chili peppers in a storage room with a temperature of 8 - 12 0C with a
humidity of 90 - 95% can maintain the shelf life for 3-8 days. The best way to store fresh red
chili is by cold storage. According to (Utama 2001) cold storage aims to suppress the level
of development of microorganisms and biochemical changes. Based on the type of
packaging material, banana leaves provide the best quality in the storage of fresh red chili
peppers because banana leaves provide the lowest weight loss value and provide the highest
value in maintaining water content, vitamin c, organoleptic test values, texture, color and
aroma (Sembiring 2009; Sunarmani 2012). According to Sembiring (2009) and Sunarmani
(2012), the length of storage that provides the best quality of red chili in packaging is
recommended for 1 week. The longer the storage, the more the weight loss increases. The
recommended packaging is banana leaves and stored in a cooler for 4 weeks. Fresh chili has
a very short shelf life. Therefore, it is necessary that post-harvest handling from harvesting to
transportation must be done carefully, otherwise the handling will make the chili easily
damaged and cause shrinkage of the chili weight.
Damage to chili peppers can be mechanical and physical. The result of mechanical and
physical damage is certainly very detrimental. Therefore, in order for chili to maintain its
quality until the buyer's hand, good handling is needed from harvest to post-harvest (Wijaya
and Sutapa 2013).
Before distribution, the harvested chilies must go through a series of post-harvest
processes that include sorting, curing, packaging and storage. Materials used as packaging
are bamboo baskets, cartons, plastic sacks. In addition, for a relatively small capacity, the
materials that can be used are LDPE plastic, stereoform and banana leaves.
5.3
Dried Red Chili Processing
In this study, to stabilize the selling price of existing red chili commodities, if the
amount of production exceeds the demand from consumers, it is hoped that farmers / farmer
groups can make processed chili products such as dried chilies, chili powder / chili flour and
chili sauce from unsold red chilies. Chili processing is one way to maintain the availability
of chili without depending on the season and chili can be processed into high-value products
(Taufik 2011). The right processing technology can save chili yields and increase added
value and farmers' income.
Chili processing technologies that are quite easy to adopt include dried chili, chili
powder/chili flour, chili sauce, and chili oil. The utilization of chili processing technology is
an important activity to support the success of chili agribusiness (David 2018).
There are two chili processing strategies, viz: simple processing and processing for
industrial raw materials or functional food. Simple processing of chili peppers can be done
on a household scale or small and medium enterprises. Simple processing aims to process
chili when production is abundant and then can be used as a seasoning when chili production
is low. While processing chili as industrial raw material or functional food requires a large
number of products so that it is possible to get a large profit as well. Functional food is quite
high in price, so if the price of raw materials is high enough it is still possible to buy as long
as it meets the desired quality standards (Suyanti 2007).
Processed products produced by businesses including home industries must be of good
quality and safe for consumption. All raw materials and additives as well as the production
process must be ensured to be free from biological, chemical and physical contaminants that
can disturb, harm and endanger consumer health (Suyanti 2007).
By producing quality food that is safe for consumption, public trust will increase, and
the food industry will grow rapidly. Processors must pay attention to the health and hygiene
of workers who carry out the processing process to ensure food safety and prevent the
spread of disease. For household industries, it is necessary to obtain a Household Industry
Food Production Certificate (SPP-IRT) for each product produced.
The simple chili processing guidelines prepared by the Directorate of Processing and
Marketing of Horticultural Products, Ministry of Agriculture, can be a guideline for the
development of chili processing among farmers and business actors in rural areas. This
guideline is expected to be useful and inspire business actors in Indonesia in processing chili
fruit horticultural products (Sunarmani 2012).
The chili processing guidelines are expected to increase the knowledge of farmers and
business actors in processing quality and safe chili commodities for consumption. With the
application of chili processing, it will be able to increase the added value of chili
commodities and the income of farmers, farmer groups, and chili processing business actors
in Indonesia.
Dried chilies are chilies that have had most of their water content removed so that they
are durable, easy to carry and store. Drying techniques can be done by drying them in the
sun or using a dryer. The use of dried chilies is as a seasoning and semi-finished material for
making chili powder, chili oil, and chili sauce. Dried chili has wider marketing potential
(Hartuti and Sinaga 2017).
The purpose of processing chili into dried chili is to increase shelf life and added
value. Dried chili processing includes preparation of main raw materials, preparation of
auxiliary raw materials, preparation of equipment and materials, sorting, removal of stalks,
washing, banning, drying, packaging, labeling and storage (Hartuti and Sinaga 2017).
The procedure for preparing the main raw material in the form of fresh chili peppers
with the provisions that it is not withered, not rotten, and free of pests. While preparing
supporting materials in the form of water used in the processing process according to clean
water standards. Then supporting materials are also prepared in the form of Potassium
Metabisulfite (K2S2O5) or Sodium Bisulfite (Na2S2O5).
Preparation of equipment and materials such as cutting tools (stainless steel knife or
scissors), basin, klakat or steamer pan, stove, dryer, stainless steel table, stop watch,
thermometer, scales, packaging, and sealer.
The processing of dried chilies begins with sorting, namely the selection of chilies that
have an optimal maturity level above 70% and are not rotten. The chili is removed from the
stalk, washed and cleaned from dirt and pesticide residues using running water.
Then blanching is done by steaming the chili peppers in a steamer with boiling water.
Steaming is done for 5-10 minutes. Another way of blanching can be done by immersing
chilies in hot water that is almost boiling (90°C) and has been given Potassium Metabisulfite
(K2S2O5) or Sodium Bisulfite (Na2S2O5) 2 gr/l water (0.2%) for about 6 minutes. Soaking
with these chemicals aims to inhibit enzyme activity and maintain the color of chili peppers.
This material is a safe preservative to be mixed in the blansir process. The maximum limit
for adding this preservative is 0.2% (2 gr/l water).
It takes about 1.5 liters of hot water to soak 1 kg of chili. The chili peppers that have
been soaked are then removed and put into cold water, so that the heating process stops. Then
the chili is drained and ready to be dried.
Drying of chili peppers is done using a dryer. The time required if using an oven at
50°C for 10-15 hours, a hybrid dryer 3-4 days, and sunlight in the open >6 days (depending
on the weather). The drying temperature should not exceed 60°C. Drying treatment until the
moisture content of the chili reaches less than 10% (ideally 7-8%) or when the dried chili is
easily broken.
Packaging of dried chili peppers is done using packaging in accordance with market
demand. After packaging is then carried out labeling in the center of the package. In
accordance with Government Regulation No. 69/1999 on Food Labels and Advertisements,
the label includes the product's trademark, the composition of the ingredients used, and the
net contents of the product, the certification logo, and the expiration date. Packaged products
can be stored or distributed immediately.
Storage of packaged products is done in a clean room at room temperature and out of
direct sunlight. The length of product storage depends largely on the type of packaging used.
The shelf life of dried chili can be more than 12 months. The arrangement in the storage
room is organized according to "first in first out".
6.1
Commodities in the Scope of Research
The horticultural agricultural potential of Magelang District is one of the districts in
the province. The commodity that will dominate the production of seasonal vegetable crops
in Magelang District in 2019-2021 is cabbage. Followed by large chili, cayenne pepper,
tomato, and chicory. These five products are quite well-known commodities in Central Java
and also have satisfactory market value so that many farmers choose to cultivate them. In
2021, the production of cabbage commodity in Magelang district was 32.74 thousand tons,
with the highest production in Pakis sub-district (16.51 thousand tons). Pakis sub-district
produces the most cayenne pepper compared to other sub-districts in Magelang district,
which is 29.13 thousand tons (8.14 thousand tons). The production of chili in Magelang
District is quite significant at 27.91 thousand tons, with the highest production also in Pakis
District (5.61 thousand tons). Tomato production in Magelang district reached 18.10
thousand tons, with the largest portion of the total in Dukun sub-district (9.10 thousand
tons). Petsai, also known as mustard greens, had a total production of 15.93 thousand tons in
Magelang District, with Pakis District accounting for the largest share of the total production
(8.27 thousand tons). Production of bird's eye chilies and large chilies grew by more than
fifty percent between 2020 and 2021, making them the crops with the most significant
increase. Throughout the 2019 to 2021 period there will also be an increase in commodity
prices such as cayenne pepper and large red chili. The design of this traceability system will
focus on the commodity of big red chili.
6.2
Non-Blockchain Based Approach
In the supply chain process of any product, all stakeholders must interact in a
trustworthy manner. Therefore, establishing an efficient traceability system is necessary to
identify the root causes of mis-information throughout the supply chain of red chili
commodities.
The design of an efficient traceability system is significantly dependent on the
implementation of vital traceability principles. These six principles signify the following
requirements: full chain traceability; digital information tracking and sharing; transparency
and public access to information; effective tracking after product transformation;
verification; and defining critical information. However, these studies only demonstrate a
theoretical approach; they do not offer prototype solutions for traceability systems that can
be used easily by organizations.
There are various organizations that make use of cutting-edge techniques such as
RFID, QR codes, and barcodes to implement them in supply chain processes. Trebar et al.
(2011) studied the current methodologies and approaches adopted by food supply chain
companies. In this study, various parameters were identified, such as geographical origin,
production method, etc., which are necessary to trace the origin of fraud. In this paper,
several suggestions are given and recommendations are made for the implementation of a
robust traceability system. However, this research failed to study how to maintain
transparency in sharing data among all parties in a trustworthy manner.
Lin et al. (2018) highlighted food product traceability parameters and proposed
traceability of three important parameters: species identification, production method, and
geographical origin of the food. In this study, the authors also describe some techniques that
can enhance existing traceability methods that can help prevent fraud. However, this study
does not show a system architecture and prototype to implement these techniques to combat
fraud and information malpractice.
Trebar et al. (2011) proposed a prototype for tracking the mobility of agricultural
commodity supply chains using RFID technology. In this approach, traceability is
accomplished by recording feed, performing inspection and testing, managing stock, and
receiving the final product. Along the supply chain, RFID tags are affixed to products, and
product movements are tracked in real-time to monitor all activities. While this approach
focuses on product tracking, it does not address the issues of substitution and counterfeiting
during processing. Since, this approach is centralized and manual where data may be lost in
case of a central point failure.
Research by Purwandoko et al. (2019) aims to develop an automated tracking system
for product flow in the supply chain. The advantage of this approach is the automatic
collection of data using RFID tags.
Developing an effective documentation scheme and traceability system can
prevent the illegal sale of products. In addition, researchers examined three key challenges
in building a successfultraceabilitysystem: system compatibility, data standardization, and
determining traceable entities. Prototypes or practical implementations were not
demonstrated in this study. All the aforementioned approaches fail to provide a trusted,
reliable, and non-manipulable data management system in the product supply chain.
Therefore, distributed and decentralized technologies such as blockchain can help overcome
such challenges. The following section shows relevant blockchain-based techniques to
establish traceability in the red chili commodity supply chain.
6.3
Blockchain-based Approach
All stakeholders in any supply chain should always know the status of their product
flows. Blockchain technology can help create a platform where data can be viewed by all
legitimate stakeholders. Moreover, data transacted in a blockchain system cannot be
tampered with and is permanently stored on a ledger. Therefore, all supply chain
stakeholders are accountable for their information during their business transactions and
cannot deny their actions. In a report published by the Food and Agriculture Organization
Hoffmann et al. (2012), the authors describe several ways to utilize blockchain technology
in the supply chain.
Similar to the previous approach, in Pradana et al. (2020), the authors demonstrated a
Blockchain-based proposal to create a transparent and traceable platform in the supply
chain. QR codes, which are generated based on the input of essential data elements, are used
to track products at every stage of the supply chain. Traceability can be further enhanced by
integrating cutting-edge technologies. Nonetheless, blockchain and IoT technologies are not
new to the supply chain. Marfuah and Yuliasih (2022) presented a review paper highlighting
the benefits of IoT adoption combined with Blockchain technology. The study also looked at
how IoT devices can store data on the blockchain for better traceability management. As part
of the implementation, Caballero and Rivera (2019) proposed a blockchain-based solution
that would mitigate the scalability challenges associated with blockchain-based approaches
to supply chains. To record the transacted data on the blockchain, hash functions are used to
create hash values. With IoT devices, this approach uses public and private Polygon
blockchain platforms to track and monitor products.
Existing blockchain-based technologies are capable of efficiently tracking product
data, but legitimate and reliable data input to the blockchain system is essential to achieve
the goal of an effective data management system. This is only possible if all stakeholder
inputs are trusted and valid. In our approach, we present an integrated blockchain-based
prototype solution for product traceability.
6.4
Proposed Blockchain-Based Solution
In this section, we present our proposed system architecture that combines Blockchain
technology with Polygon-based smart contracts to establish traceability in the red chili
commodity supply chain.
Based on the design of the red chili commodity supply chain traceability system
framework, a blockchain-based supply chain prototype model can be designed. In designing
this model, the actors involved are farmers, Gapoktan, buyers and external parties. The
appearance of the prototype that will be developed is shown in Figure 16.
Before a prototype can be used in an information system application, there is a stage
known as the prototype verification and validation stage. The purpose of verification is to
establish beyond a reasonable doubt that something exists or is accurate, or to ensure that
something is accurate. The verification process is carried out to ensure that the computer
program used in the computerized model can function as it should. In contrast, the purpose
of validation is to make something officially accepted or approved, especially after it has
been checked. Verification of a computerized model checks to see that the conceptual model
as well as the computer programming and implementation of the model are accurate
(Cambridge University Press 2016).
Every user participating in the public blockchain network has open access to the
network, allowing them to receive and transmit transactions to other users, no matter where
they are in the world. Developing a parallel system based on smart contracts is the most
effective method of carrying out the document verification process by utilizing blockchain
technology. Blockchain technology is used to verify compliance with contract rules.
The purpose of validation is to provide evidence that the computerized model meets
the requirements for a sufficient level of consistency with the desired application in the
context of its application. The results of the programming of the smart contracts created
need to be verified and validated to ensure their conformity with the system identification
that has been done previously. Audits are conducted with the aim of confirming data
transactions, made feasible for anyone who benefits from the system. If a transaction is
allowed by every node in the network using a consensus mechanism that ensures
transparency, then the transaction is considered valid. Each piece of data is converted into a
contract, which is then used to permanently record ownership and data (Figure 17).
Actors in this built system are divided into external and internal. External actors are
actors who do not have direct involvement in Blockchain, which means they do not make
transactions and record data on the Blockchain, these actors are farmers and buyers. While
internal actors are Gapoktan who will write transactions into the Blockchain and generate
QR Codes as in Figure 18.
Gapoktan displays products in the market place, Gapoktan confirms consumer
payments from product purchase transactions from the market, Gapoktan confirms consumer
payments from request transactions, Gapoktan processes chili peppers in the warehouse that
have passed the specified date (expired).
The activities of the Gapoktan are written into the Blockchain and generate a QR Code
by writing a smart contract that will be uploaded with an active Metamask wallet, thus
forming a block of data transactions that have been validated and verified by miners in the
proof of stake consensus.
6.5
Software and database
To build a blockchain-based red chili commodity supply chain traceability system,
several software and data bases are needed stored in MySql. Where the blockchain
application is built using a server for the front end and back end. The software used is
shown in Table 12 and Figure 19.
A web browser is software that allows you to search, access, and display web pages on
the internet. Basically, websites contain code such as JavaScript and HTML that cannot be
directly read by humans. Polygon's testnet is called Mumbai, which is a layer two (L2)
scaling platform for Ethereum. Like other testnets, Mumbai allows developers to deploy and
test their applications on the Polygon network without having to spend real money. The
Mumbai testnet is a testnet of the Polygon network, which replicates the Polygon mainnet. It
allows developers to deploy, test, and run their dApps in a risk-free and cost-free blockchain
environment. Mumbai also uses a proof-of-stake (PoS) consensus mechanism to approve
blockchain state. Polygon Mumbai is used in the blockchain-based red chili commodity
supply chain to implement and test the blockchain mechanism. An environment for writing
smart contracts with the help of Solidity programming language, metamask was used to
create and test the core implementation of the proposed system (Pranto et al. 2021).
Solidity is a programming language designed to write smart contracts on various
blockchain platforms. Solidity is not an actual language that is executed on a Blockchain
Virtual Machine. Solidity is a language that aims to simplify the creation of smart contracts.
When compiling or deploying smart contracts, a Solidity Compiler is needed. Through the
solidity compiler, the smart contract will be compiled into bytecode, which will later be
executed by the virtual machine.
MetaMask is developed by ConsenSys Software Inc. which is a block chain software
company that focuses on Ethereum-based infrastructure. MetaMask allows users to store and
manage their account keys, broadcast transactions, send and receive Ethereum-based
cryptocurrencies and tokens, and connect securely with decentralized applications.
Metamask is a cryptocurrency wallet used to interact with the Polygon blockchain chain.
Metamask allows users to access Polygon's wallet through a browser extension or mobile
app, which can then be used to interact with decentralized applications. Metamask is an
extension-based wallet that runs on a browser (Chrome, Firefox, Opera, or Brave Browser)
can easily It is used and convenient for testing as it can connect to various Ethereum nodes
to test the Blockchain (Antonopoulos 2018). Metamask is a web-based Ethereum wallet.
Metamask can also be called a portal for web2 and web3 so it is commonly called a "web3
provider". In other words, metamask allows users to store Ethereum-related data such as
public addresses and private keys like other Ethereum wallets, and allows users to interact
with websites running Ethereum-based applications and smart contracts (web browsers
become Ethereum browsers).
Application Programming Interface (API) is an interface that can connect one
application with another application, also acts as an intermediary between various different
applications both within the same platform or across platforms. Representational State
Transfer (REST) is an API architecture that is quite popular because of its ease of use by
using Json as a form of data so that it is lighter and application performance is better. REST
is a communication architecture that is commonly used in web service development.
Node.js is a software platform that allows us to create our own web server and build
web applications on it. Node.js is not a web server, but it contains an HTTP server library.
Node Js has its own HTTP server library, making it possible to run a web server without
using a server program like Apache.
MySQL is an open-source SQL-based relational database management system
(RDBMS) that works on a client-server model. While DBMS is a database management
system in general, RDBMS is database management software based on the relational model.
The advantages of MySQL are that it can integrate with other programming languages such
as R and Python, the RAM required is not so large, it can be used by multi-users, the table
structure is more flexible and it is open source.
PHP is a server-side scripting language, a programming language used to develop
static websites or dynamic websites or Web applications. PHP stands for Hypertext Pre-
processor, previously called Personal Home Pages (PHP) which can be used to create
dynamic Web pages, most operating systems and Web servers, and can access most
common databases, including MySQL. PHP can be run as a separate program or compiled as
a module for use with a web server. (https://dev.mysql.com/doc/apis- php/en/apis-php-
introduction.html). The advantages of PHP are easy to learn because it is enough to
configure, has a large community, is more concise, open source, has a fairly fast
development and has easier maintenance.
Front end is one part of the website that displays the display to users. This part is
made using HyperText Markup Language (HTTP), Cascading Style Sheets (CSS), and
JavaScript. So, a URL can work and display the website properly. Meanwhile, the back-end
is the system behind the scenes that processes the database and server.
6.6
Supply Chain Business Process Based on the Actors Involved
The red chili supply chain starts from the chili harvest, which involves picking,
collecting and placing in baskets in the field, transporting by truck or cart to the collection
point, unloading the red chili at the Gapoktan for sorting, grading and packaging. All these
activities involve farmer actors with Gapoktan.
In addition to data, Blockchain also contains business logic that is run in smart
contracts. Initially, the database storage system required a large system to be able to move
data with rental hardware that had to be paid for expensively, also with the trust that the
data entered was correct. After the discovery of Blockchain, there is no longer a need for a
large system for data storage.
Layer 0 Blockchain sits under the main Blockchain network (layer 1) and serves to
connect multiple Blockchain layers into one large Blockchain. Unlike Ethereum which has a
single Blockchain design, Polygon has several different Blockchains (parachains) connected
to one main blockchain (relay chain). In essence, Polygon's relay chain network acts as its
main hub while layer 1, as its branches. Blockchain layer 0 has tremendous power because it
can support the reliability of the scalability and interoperability aspects of Blockchain by
connecting several Blockchains, each of which has certain advantages and benefits. For
example, one chain can be optimized for identity management, while another chain has
benefits as a data storage network. Since they are all connected by layer 0, each of these
chains can communicate and share data between each other.
Layer 1 in Blockchain is often known as the "implementation layer" which refers to
the actual Blockchain architecture. This layer is the residence of the crypto assets associated
with the Blockchain. In addition, activities related to functionality and consensus
mechanisms also take place at this layer one. The examples of layer 1 Blockchain are
Bitcoin, Ethereum, Polygon and Solana. Layer 1 Blockchain is usually imperfect because
Scalability Trilemma. For example, the Blockchain may have decentralization and qualified security
properties, but its scalability is quite limited. Hence, it is not surprising that existing Blockchain
networks have scalability that cannot accommodate global-sized data exchange flows. If they want to
concentrate on the scalability aspect at the beginning, then they have to give up the reliability of the
decentralization and security aspects.
Second-layer Blockchain networks are commonly known as second-layer solutions or
Blockchain protocols that are located outside of the original Blockchain (off-chain). These
blockchain networks are protocols that stand on top of the layer 1 Blockchain network and
become a solution to the scalability issues in the first layer blockchain.
CONCLUSIONS:
In this study, several conclusions can be drawn, namely:
1. In the supply chain system that is built, farmers in the gapoktan are expected to have
the skills to do things that are usually done at the level of large traders, such as
sorting, grading as well as packaging and labeling. To continue to stabilize existing
prices if the amount of production exceeds demand, it is hoped that farmers /
gapoktan can make processed chili products such as dried chilies, chili powder, chili
sauce etc. from unsold red chilies. With this work system, there will be transparency
in the red chili trade where farmers in the gapoktan can interact directly with
consumers both for large party purchases and small purchases. This will enable
farmers and Gapoktan to maintain supply conditions that reflect demand conditions,
as well as enable farmers and Gapoktan to determine prices based on actual supply-
demand conditions. By looking at the demand conditions for fresh red chili, farmers
and Gapoktan can regulate supply conditions with a policy of making derivative
products for red chili commodities that cannot be sold either because the quality does
not meet the set standards or because of abundant stock conditions. This will
maintain supply stability and also commodity price stability, which in turn will
increase the competitiveness of farmers.
2. In this research, a red chili supply chain system based on the polygon blockchain matic
testnet was successfully created. As a decentralized network, Polygon blockchain can
be built and operated through applications and is public with a proof of steak
consortium. Events occur in smart contracts for all supply chain actors as the basis
for supply chain transactions on the blockchain network. Blockchain data is stored in
blocks after validation and encrypted with a hash function. To track supply chain
activities, the blocks form a distributed ledger. Web applications by consumers as
one of the supply chain actors can trace the purchased chili products based on the
transaction hash code. The data that can be traced includes product data consisting of
product name, product description, packaging date, selling price, volume, blockchain
hash and product image. Transaction data consisting of transaction number,
transaction status, buyer name, buyer address, farmer group name, transaction total,
transaction date, estimated goods to consumers and blockchain hash. Harvest data
consisting of farmer name, farmer address, land status, land address, land area and
photos. Solidity program language is used to create a prototype system based on
smart contracts. This system consists of farmers, Gapoktan, consumers and external
parties. T h e data successfully inputted into the farmer database consists of name,
contact address, land area, ownership status, land photo, harvest date, chili quality
and chili photo. Input data for Gapoktan consists of name, contact, address, bank
name, account number and name. While the data for consumers consists of name,
contact, address and photo. The data inputted into the blockchain includes Gapoktan
displaying products in the market place, Gapoktan confirming consumer payments
from product purchase transactions from the market and request transactions,
Gapoktan processing chili peppers in the warehouse that have passed the specified
date (expired). Smart contracts function as automatic programs that control data in
the blockchain polygon according to the agreement or program code written. The
inputted data will be turned into a transaction record, and cryptographically
encrypted into a hash code. The hash code is then verified and validated by the
consensus active on the matic testnet. This code can be distributed to the entire
network involved, where every data transaction is recorded transparently, traceable,
secure, trusted and cannot be changed unilaterally. Supply chain actors can interact
through the blockchain in transactions and data tracking using web applications.
