Supporting smallholder farmers in Indonesia

A startup is focused on helping the nation’s smallholder farmers improve their productivity and livelihood with an app

Spotted: Close to 29 per cent of the Indonesian workforce work in the agricultural sector, according to the World Bank, and over half of Indonesian farmers are smallholders – earning an average of just $3.20 (around €3) per day. These smallholders are vulnerable to climate shocks and lack access to funding sources, making farming an especially precarious way of life. The World Bank, however, also feels that digital AgTech could be a game changer for the sector. This is certainly what startup Eratani is banking on.

Eratani has developed a platform which helps farmers digitise farming practices and reduce manual labour by providing downstream (sales and distribution channels) and upstream solutions (data-driven supply chain management and agronomic insight) geared to smallholders. The company, which was launched in 2021, also provides agri-financing, making it a one-stop-shop for Indonesia’s smallholders.

The platform works through an app, giving farmers access to financial support, raw materials and supplies at stable prices, education on farming technology, and access to insurance at standardised prices. So far, the startup has helped more than 5,000 participating farmers increase their incomes by 25 percent.

The company states: “Eratani as an agri-tech company founded by the children of the nation has realised the urgency of agriculture problems in Indonesia. Eratani embodies a mission to improve Indonesian farmers’ welfare by building a strong agriculture ecosystem”.

Increasing the productivity of smallholder farmers is one way to improve the sustainability of the farming sector and reduce waste. In addition to Eratani, Springwise has spotted other innovations aimed at improving farming – and farmer’s lives. These include a platform that makes it easier for small farmers to promote regenerative agriculture, and an online marketplace that connects coffee farmers and buyers.

Written By: Lisa Magloff