Aquaculture Supply-chain Management

Marine farming

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Aquaculture Supply-chain Management
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Build digital platforms focused on providing end-to-end supply-chain assistance for aquaculture, including provision of harvesting support, addressing farm and feed needs and assisting in financing for farmers (for procurement of fishing vessels and fishing gear) Examples of some companies active in this space are:

T. Multidaya Teknologi Nusantara (eFishery), founded in 2013, is an end-to-end platform, supporting fish/shrimp farmers with technology, feed, financing and markets. It has raised USD 94 mn, including USD 90 mn in Series C from Temasek Holdings (Private) Limited, SoftBank Vision Fund 2 and Sequoia Capital India Advisors Private Limited in 2022.

Aruna, founded in 2016, is the largest integrated fisheries e-commerce that provides two solutions for fishermen: a digital fish auction platform to sell their catch at a fair price and a marketplace for seafood products, that utilizes data from the auction platform to ensure fair trade practices. It raised USD 35 mn in Series A from Prosus Ventures and East Ventures (Growth Fund). (13)

Expected Impact

End-to-end aquaculture supply-chain solutions to promote the development of the sector, ensure food security and promote sustainable development.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
Aquaculture industry's revenues grew at a CAGR of 13.6% between 2015 and 2019. (15)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Life Below Water (SDG 14)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Reduced Inequalities (SDG 10) Responsible Consumption and Production (SDG 12)
Sector Sources
  • 1) Republic of Indonesia. 2019. Roadmap of SDGs Indonesia Towards 2030. https://www.unicef.org/indonesia/media/1626/file/Roadmap%20of%20SDGs.pdf. 2) Hadyan, Rezha. Bisnis.com, 2021. Indeks Ketahanan Pangan Global 2020: Posisi Indonesia Turun ke-65. https://ekonomi.bisnis.com/read/20210313/12/1367047/indeks-ketahanan-pangan-global-2020-posisi-indonesia-turun-ke-65 3) Republic of Indonesia. 2020. Indonesia's 2020-2024 National Medium-Term Development Plan (RPJMN). https://perpustakaan.bappenas.go.id/e-library/file_upload/koleksi/migrasi-data-publikasi/file/RP_RKP/Narasi-RPJMN-2020-2024-versi-Bahasa-Inggris.pdf. 4) Rokom. Sehat Negeriku, 2018. Kenali Masalah Gizi yang Ancam Remaja Indonesia. https://sehatnegeriku.kemkes.go.id/baca/rilis-media/20180515/4025903/kenali-masalah-gizi-ancam-remaja-indonesia/ 5) Palladium. 2020. Women in Indonesia are Farmers and Decision Makers: What Businesses Need to Know. https://thepalladiumgroup.com/news/Women-in-Indonesia-are-Farmers-and-Decision-Makers-What-Businesses-Need-to-Know 6) Ministry of Investment/BKPM. Blue economy holds the key to Indonesia’s sustainable prosperity. https://www.bkpm.go.id/en/publication/detail/news/blue-economy-holds-the-key-to-indonesias-sustainable-prosperity 7) Sihombing, Martin. Bisnis.com, 2018. 3,9 Juta Perempuan Nelayan Belum Diakui Negara. https://ekonomi.bisnis.com/read/20180222/99/741892/39-juta-perempuan-nelayan-belum-diakui-negara 8) Mubarok, Falahi. Mongabay, 2021. Hari Nelayan: Nasib Perempuan Nelayan yang Masih Kelam. https://www.mongabay.co.id/2021/04/07/hari-nelayan-nasib-perempuan-nelayan-yang-masih-kelam/ 9) Napitupulu, Lucentezza, and Tanaya, Smita. World Resources Institute (WRI) Indonesia, 2020. 3 Reasons Why Women In Fisheries Matter For An Inclusive Economic Recovery. https://wri-indonesia.org/en/blog/3-reasons-why-women-fisheries-matter-inclusive-economic-recovery 10) Ariesta, Anggie. IDX Channel, 2021. Menteri KKP Sebut Nilai Produksi Perikanan Capai Rp132 Triliun. https://www.idxchannel.com/economics/menteri-kkp-sebut-nilai-produksi-perikanan-capai-rp132-triliun 11) World Bank. 2021. Press Release: A Sustainable Ocean Economy is Key to Indonesia’s Prosperity. https://www.worldbank.org/en/news/press-release/2021/03/25/sustainable-ocean-economy-key-for-indonesia-prosperity 12) Presidential Advisory Council (Wantimpres) of the Republic of Indonesia. 2017. Indonesian Fisheries Potential. https://wantimpres.go.id/id/potensi-perikanan-indonesia/
IOA Sources
  • 13) Prosus. 2021. Indonesia’s fisheries platform, Aruna, secures Series A funding of US$ 35 million. https://www.prosus.com/news/indonesias-fisheries-platform-aruna-secures-series-a-funding-of-us-35-million/ 14) Budianto, Arif. IDX Channel, 2021. Fishery Cultivation Potential Reaches USD1.2 Trillion, But Lack of Technology. https://www.idxchannel.com/economics/potensi-budidaya-perikanan-capai-usd12-triliun-namun-minim-teknologi 15) MarketResearch.com. Aquaculture in Indonesia. https://www.marketresearch.com/MarketLine-v3883/Aquaculture-Indonesia-13512433/ 16) CompassList. 2020. Indonesia Agritech Report 2020: Startups, Investors and Outlook. https://www.compasslist.com/reports/indonesia_agritech_report_2020 17) Ipsos Business Consulting. 2016. Indonesia’s Aquaculture Industry: Key Sectors for Future Growth. https://www.ipsos.com/sites/default/files/2016-08/indonesia-aquaculture-industry.pdf 18) Food and Agriculture Organization (FAO). 2020. The State of World Fisheries and Aquaculture 2020: Sustainability in action. https://doi.org/10.4060/ca9229en 19) Deal Street Asia. 2021. Indonesian aquaculture startups eFishery, Aruna in talks to raise funding. https://www.dealstreetasia.com/stories/indonesia-aquaculture-startups-240431/#:~:text=Per%20a%20DealStreetAsia%20report%20last,81%25%20from%20%2432%2C892%20in%202017. 20) The Business Times. 2022. Indonesia's eFishery raises US$90m in Series C round co-led by Temasek. https://www.businesstimes.com.sg/garage/indonesias-efishery-raises-us90m-in-series-c-round-co-led-by-temasek 21) Deal Street Asia. 2021. Indonesia's eFishery said to be in talks to raise funding from SoftBank, Sequoia, Temasek. https://www.dealstreetasia.com/stories/softbank-sequoia-temasek-efishery-262604/#:~:text=eFishery%20had%20raised%20a%20pre,Series%20A%20round%20in%202018.&text=He%20said%20that%20eFishery%20had,fold%20from%20the%20previous%20year. 22) AgFunder. 2020. ASEAN Agrifoodtech Investment Report 2020. https://research.agfunder.com/2020/2020-asean-agrifoodtech-investment-report-final.pdf 23) eFishery. About Us: eFishery. https://efishery-com.translate.goog/about_us/?_x_tr_sl=id&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc 24) KrAsia. 2021. Buy fish feed now, pay after the harvest: eFishery continues to revamp the conventional fish industry. https://kr-asia.com/buy-fish-feed-now-pay-after-the-harvest-efishery-continues-to-revamp-the-conventional-fish-industry 25) Directorate General of Fisheries Cultivation. 2018. Towards Realizing Food Sustainability, KKP Drives Climate Change-Based Aquaculture Innovation https://kkp.go.id/djpb/artikel/6860-wujudkan-pangan-berkelanjutan-kkp-dorong-inovasi-akuakultur-berbasis-perubahan-iklim 26) Republic of Indonesia. 2021. Voluntary National Review: Annexes. https://sdgs.bappenas.go.id/laporan-voluntary-national-review-vnr-indonesia-2021/ 27) World Bank. 2021. Oceans for Prosperity: Reforms for a Blue Economy in Indonesia. https://www.worldbank.org/en/news/press-release/2021/03/25/sustainable-ocean-economy-key-for-indonesia-prosperity 28) Republic of Indonesia. 2016. Law (UU) No.7/2016 concerning the Protection and Empowerment of Fishermen, Fish Raisers and Salt Farmers. http://extwprlegs1.fao.org/docs/pdf/ins159362Ind.pdf 29) Republic of Indonesia. 2009. Law (UU) No.45/2009 concerning Fishery. http://extwprlegs1.fao.org/docs/pdf/ins97600.pdf 30) Indonesia Investment Coordinating Board (BKPM). 2020. BKPM Regulation No.5/2020, revoking BKPM Regulation No.6/2018, concerning Guidelines of Entity Income Tax Incentives in Certain Industries and/or Regions. https://peraturan.bpk.go.id/Home/Details/169073/peraturan-bkpm-no-5-tahun-2020 31) Republic of Indonesia. 2021. Presidential Decree No.10/2021 concerning Investment in Business Fields. https://jdih.bumn.go.id/lihat/PERPRES%20Nomor%2010%20Tahun%202021 32) Republic of Indonesia. 2021. Presidential Regulation (Perpres) No.49/2021, amending Presidential Decree No.10/2021, concerning Investment in Business Fields. https://jdih.bumn.go.id/lihat/PERPRES%20Nomor%2049%20Tahun%202021 33) East Ventures. 2020. Aruna records 86x growth during pandemic, raised fresh funds from existing investors. https://east.vc/aruna/aruna-records-86x-growth-during-pandemic/ 34) Universitas Muhammadiyah Pontianak (UNMUHPNK). 2018. Potential and Prospects of Aquaculture Development in West Kalimantan. http://fpik.unmuhpnk.ac.id/posts-30-potensi-dan-prospek-pengembangan-akuakultur-di-kalimantan-barat