Smart Bagging System for Business Innovation: Enhancing Profitability and Exploring New Markets

The fertilizer industry is vital in global food security but it faces packaging efficiency and product quality challenges. This study introduces the Smart Bagging System (SBS), a precision packaging technology that integrates IoT, sensors, and Random Forest Regressor algorithms to optimize fertilizer packaging. By automating key parameters such as air pressure and clamping time, SBS significantly reduces off-spec products, lowers the defect rate from 68.15% to 2.37%, and improves operational efficiency. In addition, SBS creates entrepreneurial opportunities by enabling the production of fertilizers in small packages, such as 5 kg, that cater to the needs of new markets, including urban farming and small retail consumers. This small package offers a higher margin, reaching IDR 5,038/kg, compared to the 50 kg package's IDR 1,939/kg margin. SBS supports the Sustainable Development Goals (SDGs), including SDG 9: Industry, Innovation, and Infrastructure, SDG 12: Responsible Consumption and Production, and SDG 13: Climate Action, by reducing material waste, optimizing energy use, and minimizing carbon emissions. These innovations not only increase profitability but also support the long-term sustainability and competitiveness of the fertilizer industry.