THE ROLE OF DIFFUSION OF INNOVATION IN AGRICULTURAL BUSINESS TO COMPETE IN ECONOMIC ASEAN COMMUNITY Harisa Mardiana1, Esther Kembauw2 1Department of Information Technology, Faculty of Science and Technology, Universitas Buddhi Dharma, Tangerang, Indonesia 2Department Social Economic, Faculty of Agriculture, University Pattimura Ambon Indonesia Email: harisa.mardiana@buddhidharma.ac.id; ekembauw@yahoo.co.id ABSTRACT Diffusion of innovation is one of the most needed in agribusiness farming. Many farmers failed to increase their income. Besides, they lost their income and even their land because they couldn’t be able to solve their problems which the national development of agriculture business seemed impossible to overcome the problems and the obstacles to resolving thoroughly as the requirement needed more serious attention. The innovation was a key factor for agribusiness growth, development and the welfare of chili pepper farmer. Diffusion of chili pepper farming had given differences in innovativeness to determine the characteristic of the adopter categories. But the communication and adoption process could explain the need of diffusion of innovation. The important in diffusion was the time dimension in chronology and not as history. Innovation was treated as both products of contradiction and caused of new contradiction and the process of adoption as both being structured was changed after all. When a new idea adopted, the innovations required in the period of time to become available. A new technology as a smart technology adopted and transformed in a learning process. By having to identify and examining the WHY and HOWs of the interface the farmer and innovation systems would, therefore, create a very good intervention ground to make a rational use of resources and knowledge for the development of agribusiness farming systems I. Introduction Agribusiness has a chance to be one of the most important parts of the economic growth in Indonesia. Data from World Bank indicated that 40% of Indonesian people live in rural area and work as a farmer. (Quincieu, 2015) This problem continues from time to time and the farmer needs more information to have problem solving. When we look at the case, innovation is a key factor for agribusiness growth, development and the welfare of chili pepper farmer. To measure the innovation is useful because it may provide orientation for the nature and degree of development of society towards a better future. (Ariza, César. et al., 2013) Innovation in agribusiness implies to a recent task, which has just told from Medan Business Newspaper. As far as we concerned the diffusion of innovation has not yet been applied and the selling and buying systems need to be changed and renewed. (Figure 1). II. Theory and the Applicable of Diffusion of Innovations in Chili Pepper Farming Diffusion really includes three fairly distinct processes: Presentation of the new culture element or elements to the society, acceptance by the society, and the integration of the accepted element or elements into the preexisting culture (Linton, 1936). Diffusion theory does not lead to the conclusion that one must wait for the diffusion of a new product or practice to reach the poorest people. In fact, one can accelerate the rate of adoption in any segment of the population through more intensive and more appropriate communication and outreach. (Green & Parcel, 1991). III. Methodology The Innovations Decision Process in Farming the Chili Pepper The research has used case study methodology to obtain the advantages of the actor’s perspective on societal contexts and dynamics. The qualitative interview and the close dialogue are at the centre of this methodology, thereby allowing for empirical inquiry of unclear ’boundaries between the phenomenon studied and the context’ (Yin, 1994). The goal of this methodology is to expand the theory, rather than proving it. This methodology is adopted as the qualities of clusters and its innovati