The Transformation Process of Chili Auction Market From Conventional to Digital in Kulonprogo Regency, Indonesia

The auction market system in Kulonprogo Regency serves as a pivotal platform for the trade of farmers' chili, handling significant volumes of produce daily. However, the management of these markets remains largely conventional or semi-digital, potentially resulting in operational inefficiencies and inaccuracies. This study investigates the process of transitioning auction market management from conventional to digital approaches. Employing a descriptive qualitative methodology, insights were gathered from auction market managers representing five distinct groups in Kulonprogo Regency. Data collection methods included focus group discussions (FGDs), observation, and in-depth interviews. Findings indicate varying levels of readiness among auction markets for digital adoption, with the Tani Rejo Auction Market leading in digital technology utilization. Factors such as institutional dynamics, leadership capabilities, and human resource readiness significantly influence the pace and success of this transformation. Furthermore, persistent farmer perceptions regarding potential adverse impacts of digital pricing on their livelihoods are noted. The study outlines a phased approach to the transformation process, encompassing initial communication, goal setting, system analysis, digital application implementation, training, socialization, evaluation, and follow-up. Stakeholder support, particularly from entities such as the Agriculture Office and Bank Indonesia, is identified as crucial in facilitating farmers and traders through this digitization journey, ultimately enhancing market efficiency and benefiting all stakeholders