Output side digital platforms for farmers

Farmlands in Indonesia
Output side digital platforms for farmers
Efficient supply chain management assistance and connecting farmers with end consumers
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 B2B / B2B2C AgriTech models offering: - Effective post-harvest supply chain solutions to ease the process of connecting farmers to end-customers, and vice-versa, including farm-to-table fresh produce distribution - Improved market access through online and offline marketplaces for effective whole-sale and retail-sale of farm produce Examples of companies active in this space are:

TaniHub Group, founded in 2016, is a B2B platform connecting farmers with businesses that use or sell their products. It provides crowdlending support and assists farmers in selling their products to the end consumers. It has raised ~USD 94 mn, including USD 65.5 mn in Series B from MDI Ventures, Add Ventures and others investors, which brought its valuation to > USD 200 mn. (12)(13)

Vasham, founded in 2013 (wholly owned subsidiary of PT Japfa Comfeed Tbk), aims to optimize the value chain of agriculture by connecting and creating synergies and efficiencies that in return empower producers and customers alike, enabling farmers in Indonesia with the tools and finance to start with agriculture. In 2016, it raised an undisclosed amount from Patamar Capita. (14)

PT. Eden Pangan Indonesia (Eden Farm), founded in 2017, is an AgriTech company engaged in supplying food ingredients to culinary businesses in major cities and working with local producers across the country to stabilize food prices in Indonesia. Till 2021, it has raised USD 20.9 mn, including USD 19 mn in Series A round from appWorks Ventures Co., Ltd. and AC Ventures.

Kedai Sayur, founded in 2018, operates an online platform that builds networks of daily produce distribution and open the access for local vegetable hawkers. Till 2019, it raised USD 5.3 mn, including USD 4 mn in a Venture round from East Ventures Pte. Ltd.; PT Triputra Investindo Arya; PT. Prerkasa Multi Persada; SMD Ventures.

SayurBox PT, founded in 2016, sells organic, hydroponic, pesticide-free, and chemical-free produce in various categories, such as vegetables, fruits, grains, herbs and seasonings, protein food, and ready to consume, through farm-to-table concept. Till 2021, it raised USD 5.35 mn, including an undisclosed amount in Series B funding from Syngenta Ventures and PT Astra Digital International.

Expected Impact

Output side AgriTech based e-commerce platforms to improve farm to consumer market access, reduce losses incurred due to waste of resources and farm produce, and uplift smallholder farmers in Indonesia.

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).
Return for Agri-models depends on geographic reach, number of farmers and fintech capability.
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.
Short Term (0–5 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) Gender Equality (SDG 5)
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. 2021. Voluntary National Review. https://sdgs.bappenas.go.id/laporan-voluntary-national-review-vnr-indonesia-2021/ 2) 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. 3) 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 4) The ASEAN Post. 2019. Indonesia’s female farmers treated unfairly. https://theaseanpost.com/article/indonesias-female-farmers-treated-unfairly 5) United Nations Development Programme (UNDP). New York, 2019. Gender mainstreaming in global agricultural supply chains can accelerate good growth: What works and for whom? https://goodgrowthpartnership.com/wp-content/uploads/Gender-KP-Final-Jan2020.pdf 6) Asian Development Bank (ADB). 2019. Policies to Support Investment Requirements of Indonesia’s Food and Agriculture Development during 2020-2045. https://www.adb.org/sites/default/files/publication/534336/indonesia-food-agri-development-2020-2045.pdf 7) Republic of Indonesia. 2019. Roadmap of SDGs Indonesia Towards 2030. https://www.unicef.org/indonesia/media/1626/file/Roadmap%20of%20SDGs.pdf. 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. https://pse.litbang.pertanian.go.id/ind/index.php/covid-19/berita-covid19/675-peran-petani-perempuan-pada-masa-pandemi-covid-19#!/ccomment 9) Australian-Indonesian Partnership (PRISMA). 2014. Gender and Social Inclusion: Strategy Report. https://aip-prisma.or.id/data/public/uploaded_file/08.12.16_Final%20Draft%20Gender%20and%20Social%20Inclusion%20PRISMA.pdf 10) AgFunder. 2020. ASEAN Agrifoodtech Investment Report 2020. https://research.agfunder.com/2020/2020-asean-agrifoodtech-investment-report-final.pdf 11) FDI Intelligence. 2021. Indonesia’s agritechs provide vision of a sustainable recovery. https://www.fdiintelligence.com/article/79380
IOA Sources
  • 12) Shu, Catherine. TechCrunch, 2021. Indonesian agritech platform TaniHub Group harvests a $65.5M Series B round. https://techcrunch.com/2021/05/21/indonesian-agritech-platform-tanihub-group-harvests-a-65-5m-series-b-round/ 13) DailySocial. 2021. Eden Farm Umumkan Pendanaan Seri A 271 Miliar Rupiah Dipimpin AppWorks dan AC Ventures. https://dailysocial.id/post/pendanaan-seri-a-agritech-eden-farm 14) Tracxn. 2022. Companies: Vasham. https://tracxn.com/d/companies/vasham.co.id 15) CompassList. 2020. Indonesia Agritech Report 2020: Startups, Investors and Outlook. https://www.compasslist.com/reports/indonesia_agritech_report_2020 16) Goh, Lesley and Wu, Kelsey. World Bank Blogs, 2021. Investing in data and innovation ecosystem to transform Indonesia’s agriculture. https://blogs.worldbank.org/eastasiapacific/investing-data-and-innovation-ecosystem-transform-indonesias-agriculture 17) Statista. Real GDP Growth of the Agriculture Sector in Indonesia 2014-2019, with Forecasts for 2020-2022. https://www.statista.com/statistics/710164/indonesia-real-gdp-growth-of-the-agriculture-sector/#:~:text=In%202022%2C%20it%20was%20forecast,contract%20in%20the%20next%20years. 18) Consultancy.asia. 2021. Covid-19 a catalyst for growth in Indonesia's e-grocery market. https://www.consultancy.asia/news/3941/covid-19-a-catalyst-for-growth-in-indonesias-e-grocery-market 19) DailySocial. 2022. KedaiSayur Announces the Latest Funding Worth of 50 Billion Rupiah. https://dailysocial.id/post/kedaisayur-announces-the-latest-funding-worth-of-50-billion-rupiah 20) Deal Street Asia. 2021. How Sayurbox used a bespoke innovative approach to stand out in Indonesia's crowded e-grocery space. https://www.dealstreetasia.com/partner-content/sayurbox-bespoke-approach-e-grocery/ 21) IDN Financials. 2021. Tanihub business growth reaches 639% in 2020. https://www.idnfinancials.com/news/37849/tanihub-business-growth-reaches 22) East Ventures. 2019. Kedai Sayur Raises $4 Million Led by East Ventures. https://east.vc/kedai-sayur/kedai-sayur-raise-4-million/ 23) Business Call to Action. Member - PT East West Seed Indonesia (EWINDO). https://www.businesscalltoaction.org/member/east-west-seed-indonesia-ewindo 24) Republic of Indonesia. 2021. Voluntary National Review: Annexes. https://sdgs.bappenas.go.id/laporan-voluntary-national-review-vnr-indonesia-2021/ 25) Pangan Bijak Nusantara. 2020. Indonesia Sustainable Food System. https://panganbijak.org/wp-content/uploads/2020/10/Strategy-Paper-ISFS-ENG-0510-min.pdf 26) KrAsia. 2021. Indonesian B2B agritech startup Eden Farm raises USD 19 million to empower local farmers. https://kr-asia.com/indonesian-b2b-agritech-startup-eden-farm-raises-usd-19-million-to-empower-local-farmers 27) Budisatrijo, Alice. BBC News, 2014. Bali cashew factory changes villagers' fortunes. https://www.bbc.com/news/business-29751792 28) Patamar Capital. 2018. Impact Investor Patamar makes first investment from women-focused fund in SayurBox. https://patamar.com/impact-investor-patamar-makes-first-investment-women-focused-fund-sayurbox/ 29) WWF-UK. 2021. Driven to waste: The Global Impact of Food Loss and Waste on Farms. https://wwfint.awsassets.panda.org/downloads/wwf_uk__driven_to_waste___the_global_impact_of_food_loss_and_waste_on_farms.pdf 30) Hakim, Arief. Liputan6, 2021. Sayurbox Desain Ulang Kemasan untuk Cegah Limbah Plastik. https://www.liputan6.com/tekno/read/4603215/sayurbox-desain-ulang-kemasan-untuk-cegah-limbah-plastik 31) Open Learning Campus of the World Bank Group. 2020. Digital Ag Series: Building sustainable supply chains in agriculture in Indonesia using technology and innovations. https://olc.worldbank.org/content/digital-ag-series-building-sustainable-supply-chains-agriculture-indonesia-using-technology 32) Republic of Indonesia. 2015. Government Regulation (PP) No.17/2015 concerning Food and Nutrition Security. https://www.ecolex.org/details/legislation/government-regulation-of-the-republic-of-indonesia-no-17-of-2015-concerning-food-and-nutrition-security-lex-faoc169453/ 33) Ministry of Agriculture of the Republic of Indonesia. 2012. Minister Regulation No.6/2012 on Guidance for Agriculture Research & Development Cooperation. https://www.fao.org/faolex/results/details/en/c/LEX-FAOC119236 34) Republic of Indonesia. 2014. Presidential Regulation (Perpres) no.154/2014 on the Agricultural, Fishery, and Forestry Institutional Extension. https://jdih.maritim.go.id/cfind/source/files/perpres/2011-2015/perpres_154_2014.pdf 35) 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. https://jdih.pertanian.go.id/fp/peraturan/detail/476https://jdih.pertanian.go.id/fp/peraturan/detail/476 36) Ministry of Trade of the Republic of Indonesia. 2017. Minister Regulation No.57/2017 concerning the stipulation of maximum rice prices. http://jdih.kemendag.go.id/backendx/image/regulasi/25010739_Permendag_No._57_Tahun_2017.pdf 37) Ministry of Agriculture of the Republic of Indonesia. 2015. Minister Regulation No.40/2015 concerning Facilitation of Agricultural Insurance. https://bppsdmp-ppid.pertanian.go.id/doc/19/PERATURAN%20KEMENTERIAN%20PERTANIAN/Permentan%2040-2015%20Fasilitas%20Asuransi.doc.pdf 38) 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. https://keswan.ditjenpkh.pertanian.go.id/?p=3167#:~:text=Peraturan%20Menteri%20Pertanian%20Nomor%2015,Sektor%20Pertanian%20%7C%20Direktorat%20Kesehatan%20Hewan 39) 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. https://jdih.pertanian.go.id/fp/peraturan/detail/1041https://jdih.pertanian.go.id/fp/peraturan/detail/1041 40) 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 41) Republic of Indonesia. 2019. Law (UU) No.22/2019 on the Sustainable Agriculture Cultivation System. https://www.fao.org/faolex/results/details/en/c/LEX-FAOC195060 42) Republic of Indonesia. 2014. Government Regulation (PP) No.25/2014 concerning the Granting of Horticultural (vegetables, fruits, herbal medicines) Business Facilities and Incentives. https://www.fao.org/faolex/results/details/en/c/LEX-FAOC169454 43) Ministry of Agriculture (Kementan) of the Republic of Indonesia. 2020. Ministry of Agriculture 2020-2024 Strategic Plans. https://balitklimat.litbang.pertanian.go.id/wp-content/uploads/2020/05/Draft-Renstra-2020-2024-Final_3.pdf