Palm Oil Blockchain: Traceability and Sustainability in Palm Oil Industry

Blockchain technology is believed to have a transformative impact on the industry, not only creating transparency in the supply chain but also creating value for stakeholders in both the upstream and downstream sectors.

The Blockchain is an encrypted and tamper-proof database for each entity that participated in the value chain. Each node contains a record of the exact transaction, both at the farmer, producer, transporter, or buyer level, each transaction in the value chain will be in each node.

In other words, the Blockchain is a decentralized, distributed, and public digital ledger that is used to record transactions on many computers so that they cannot be retroactively changed without changing the entire block afterwards and consensus in the network. Thus, allowing parties to verify and audit transactions easily.

How EPCS works in Palm Oil Blockchain Platform

The application of Blockchain technology will probably experience numbers of obstacles given the lack of attention to digital technology in palm oil producing countries, especially in the business process (in field operational) which is the main base of the problems so far. In facts, most palm oil plantations are still based on paper (non-digital) use in their daily operational, making it difficult to record all activities to the Blockchain system.

To overcome the challenges presented by the current traceability method, eKomoditi Solutions Indonesia develops digital software application that works with smartphones and mobile applications, given name Electronic Plantation Control System (EPCS).