Input-side Digital Platforms for Farmers

Input-side Digital Platforms for Farmers
Offering effective farming advice, input solutions (processing, monitoring, etc.), financing and logistics support
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

Invest in B2C AgriTech models engaged in offering logistics support for agriculture inputs (seeds, nutrition and pest control) to ensure timely supply and enable quality produce and mechanization or productivity increasing tools (both, on sale or on lease) in line with modern technology.

Other services may include advisory on specialized value chains (high value produce like Exotic Fruits and Vegetables, Tea and Coffee), financial assistance (in the form of working capital loans and insurance) to eliminate losses due to delays in production. Examples of some companies active in this space are:

Tunas Farm, founded in 2020, operates as an indoor vertical farming facility to produce veggies in Tangerang and sells its products online. It raised USD 1 mn from Gayo Capital in a seed funding round.

PT East West Seed Indonesia, founded in 1990, (joint venture between East West Seed and Enza Zaden) produces and markets vegetable seeds (under the brand CAP PANAH MERAH) for smallholder farmers and offers extension/training services to increase their yields/income. With Business Call to Action (2016), it integrates 17,775 seed growers into its value chain and impart knowledge to 125,000 farmers.

PT. Crowde Membangun Bangsa, founded in 2015, operates a peer to peer (P2P) lending platform for farmers. It educates farmers on technology and financial management, and provides equipment like tools, seeds, fertilizers, and pesticides. In 2021, it raised USD 9 mn (Series B) from Monk's Hill Ventures, Mandiri Capital and PT. Great Giant Pineapple Co, at a post-money valuation of USD 32 mn.

Habibi Garden, founded in 2018, is an AgriTech company that focuses on leveraging Internet-of-things (IoT) on farming operations. Habibi Garden creates precision agriculture devices for farmers that process environmental and local data and optimize fertilizer and water schedules to optimize crop yields. In 2018, it raised an undisclosed amount in seed funding from Brinc. (12)

Expected Impact

Support farmers by providing farm input, information and financial services to improve productivity and induce climate resilient farming practices.

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).
Crowde reported a profit of USD 183,000 and a revenue of USD 438,000 in 2020. (18)
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.
Medium Term (5–10 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 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2)
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. 2) Hadyan, Rezha., 2021. Indeks Ketahanan Pangan Global 2020: Posisi Indonesia Turun ke-65. 3) Asian Development Bank (ADB). 2019. Policies to Support Investment Requirements of Indonesia’s Food and Agriculture Development during 2020-2045. 4) Republic of Indonesia. 2020. Indonesia's 2020-2024 National Medium-Term Development Plan (RPJMN). 5) Rokom. Sehat Negeriku, 2018. Kenali Masalah Gizi yang Ancam Remaja Indonesia. 6) Palladium. 2020. Women in Indonesia are Farmers and Decision Makers: What Businesses Need to Know. 7) Republic of Indonesia. 2021. Voluntary National Review. 8) Indonesian Centre for Agricultural Socio-economic and Policy Studies of the Ministry of Agriculture. 2021. The Role of Women Farmers During Covid-19 Pandemic.!/ccomment 9) The ASEAN Post. 2020. Empowering Indonesia’s Women Farmers. 10) Australian Centre for International Agricultural Research. 2020. COVID-19 and food systems in Indonesia. 11) IBCSD and FAO. 2020. Investment Opportunities of the Private Sector on the Sustainable Food System in Indonesia.
IOA Sources
  • 12) Tracxn. 2022. Companies: Habibi Garden. 13) DailySocial. 2021. Eden Farm Umumkan Pendanaan Seri A 271 Miliar Rupiah Dipimpin AppWorks dan AC Ventures. 14) CompassList. 2020. Indonesia Agritech Report 2020: Startups, Investors and Outlook. 15) Goh, Lesley and Wu, Kelsey. World Bank Blogs, 2021. Investing in data and innovation ecosystem to transform Indonesia’s agriculture. 16) Statista. Real GDP Growth of the Agriculture Sector in Indonesia 2014-2019, with Forecasts for 2020-2022.,contract%20in%20the%20next%20years. 17) KPMG. 2018. The Fintech Edge: Peer-to-Peer Lending. 18) CBinsights. Company: Crowde. 19) PT East West Seed Indonesia Information. 20) Hortidaily. 2018. Increasing the income of 12,500 seed growers all over in Indonesia. 21) AgFunder. 2020. ASEAN Agrifoodtech Investment Report 2020. 22) Ministry of Agriculture (Kementan) of the Republic of Indonesia. 2020. Ministry of Agriculture 2020-2024 Strategic Plans. 23) Business Call to Action. Member - PT East West Seed Indonesia (EWINDO). 24) United Nations Development Programme (UNDP). New York, 2019. Gender mainstreaming in global agricultural supply chains can accelerate good growth: What works and for whom? 25) Tech for Impact. 2020. Better finance for farmers: How one fintech startup changed the way it works. 26) USAID. 2013. Indonesia: Regional Agricultural Trade Environment (RATE), Assessment Country Summary. 27) Republic of Indonesia. 2021. Voluntary National Review: Annexes. 28) Isnurhadi, Rizqi. Xendit, 2021. How Agritech startups are rejuvenating Indonesia’s agriculture sector. 29) Republic of Indonesia. 2015. Government Regulation (PP) No.17/2015 concerning Food and Nutrition Security. 30) Ministry of Agriculture of the Republic of Indonesia. 2012. Minister Regulation No.6/2012 on Guidance for Agriculture Research & Development Cooperation. 31) Republic of Indonesia. 2014. Presidential Regulation (Perpres) no.154/2014 on the Agricultural, Fishery, and Forestry Institutional Extension. 32) Ministry of Agriculture of the Republic of Indonesia. 2021. Minister Regulation No.3/2021 on the Facilitation for the Implementation of Smallholder Business Credits (KUR) in the Agriculture Sector. 33) Ministry of Trade of the Republic of Indonesia. 2017. Minister Regulation No.57/2017 concerning the stipulation of maximum rice prices. 34) Ministry of Agriculture of the Republic of Indonesia. 2015. Minister Regulation No.40/2015 concerning Facilitation of Agricultural Insurance. 35) Ministry of Agriculture of the Republic of Indonesia. 2021. Minister Regulation No.15/2021 concerning Business Activity Standard and Product Standard in the Implementation of Risk Based-Business Licensing for Agriculture Sector.,Sektor%20Pertanian%20%7C%20Direktorat%20Kesehatan%20Hewan 36) Ministry of Agriculture of the Republic of Indonesia. 2021. Minister Regulation No. 41/2021 concerning Allocation and Highest Retail Price of Subsidized Fertilizer in Agriculture Sector for Fiscal Year 2021. 37) Ministry of Finance of the Republic of Indonesia. 2013. Minister Regulation No.66/2013 concerning procedures for Providing, Disbursing, and Holding Accountability for Seed Subsidy Funds. 38) Republic of Indonesia. 2014. Government Regulation (PP) No.25/2014 concerning the Granting of Horticultural (vegetables, fruits, herbal medicines) Business Facilities and Incentives. 39) Crowde. 2021. Melalui Program Radhia Tani, CROWDE Berdayakan Kelompok Wanita Tani.