Digitalization in Food Processing SMEs in Indonesia: Enhancing Safety, Traceability, and Consumer Trust

Abstract

Digitalization has emerged as a transformative force in food quality control, offering new opportunities to enhance safety, traceability, and consumer trust. While large-scale food industries in developed countries have increasingly adopted technologies such as Internet of Things (IoT), artificial intelligence (AI), blockchain, and smart packaging, small and medium enterprises (SMEs) in developing economies face unique challenges in implementation. This review explores the current landscape of digital adoption in Indonesian food SMEs, highlighting both the potential benefits and the barriers to integration. Key opportunities include the use of low-cost sensor technologies for monitoring product quality, mobile-based applications for traceability, and cloud-driven platforms for quality assurance. However, constraints such as limited financial resources, digital literacy gaps, infrastructure disparities, and regulatory alignment remain significant obstacles. By synthesizing international advances with national initiatives—including government programs, SNI-based standards, and pilot projects—this paper identifies critical pathways for accelerating digital transformation in Indonesian food SMEs. The findings emphasize the need for collaborative efforts among policymakers, academia, and industry stakeholders to ensure that digitalization not only strengthens food safety and quality management but also supports sustainability and competitiveness in the global market.