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ORIGINAL RESEARCH article

Front. Sustain. Food Syst.
Sec. Agricultural and Food Economics
Volume 8 - 2024 | doi: 10.3389/fsufs.2024.1438263
This article is part of the Research Topic Strategies Of Digitalization And Sustainability In Agrifood Value Chains View all 22 articles

Leveraging Financing Technology (Fintech) for Sustainable Fresh Agricultural Products (FAP) Financing in Indonesia

Provisionally accepted
Tuti Karyani Tuti Karyani *Tomy Perdana Tomy Perdana Agriani H. Sadeli Agriani H. Sadeli Hesty N. Utami Hesty N. Utami Eddy Renaldi Eddy Renaldi
  • Faculty of Agriculture, Padjadjaran University, Bandung, West Java, Indonesia

The final, formatted version of the article will be published soon.

    Financial technology (fintech) offers farmers with athe prospect to of getting other finance sources apart from the established official funding institutions. Farmers of fresh Fresh Agricultural produce Products (FAP) in Indonesia have been receiving received financial offers from various fintech platforms. However, several platforms have failed to maintain their operations, resulting in a domino of negative consequences for the farming activities. This study's objective is to evaluate the viability of financial technology (fintech) as a fresh agricultural sector finance sourceexplore how fintech contributes to the sustainability of FAP by examining five key dimensions of sustainability, i.e., economic, social, environmental, technological, and institutional. The majority ofMost extant literature primarily examines the determinants that impact an individual's interest towards fintech lending. However, those existing research has notneeds to dedicated sufficient more attention to the sustainability of the platform and the enterprises it finances, with a particular emphasis on the fresh agriculturalFAP sector. A quantitative methodology was utilized to design the study, and a proportional stratified random sampling method was employed to select 269 fresh produceFAP producers as respondents. The data were analyzed using the Multidimensional Scaling (MDS) approach in Rap-Agrifin, using factors specifically designed to assess fintech sustainability in agribusiness. Fintech in the agriculture fresh productsFAP supply chain is classified as sustainable, according to the study's finding of multidimensions. Partially, the dimensions that acquire sufficiently sustainable value are the social dimensions, the economic dimensions, and the environmental dimensions, but less sustainable are the technological dimensions and the institutional dimensions are less sustainable. This research demonstrates that the MDS approach in Rap-Agrifin can effectively analyzed sustainable finance in agriculture, highlighting the need for focused improvement on institutional and technological factors, particularly through the application of fintech.

    Keywords: sustainabilitySustainability, fintechFintech, Aagricultural Ffresh Pproducts, supply Supply chainChain, mds

    Received: 25 May 2024; Accepted: 08 Nov 2024.

    Copyright: © 2024 Karyani, Perdana, Sadeli, Utami and Renaldi. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Tuti Karyani, Faculty of Agriculture, Padjadjaran University, Bandung, 45363, West Java, Indonesia

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.