A worker refills a robot dispenser of agritech startup eFishery at a fish farm in Subang, West Java, Indonesia, in June 2022. This startup helps farmers optimize their processes through automatic feeders and mobile apps.
Dimas Ardian | Bloomberg | Bloomberg | Getty Images
Indonesian tech startups are making big bucks in aquaculture. This should come as no surprise. The archipelago has one of the longest coastlines in the world, he and her over 18,000 islands.
But there is another reason. According to investors and startups CNBC spoke to, a “technology gap” is preventing the industry from realizing its enormous potential.
Last year, several startups raised millions of dollars from high-profile investors to fill that gap. $3.5 million in pre-series A).
“Indonesia is the second largest producer of wild fish in the world after China, and the third largest producer of aquaculture after China and India. It’s just a matter of time,” Farid said. Naufal Aslam, co-founder and CEO of Aruna, a fisheries e-commerce startup, said: Aquaculture is the controlled farming of aquatic organisms, such as fish and crustaceans, especially for human consumption.
Aquaculture production and exports by country in 2020
|Aquaculture (animals excluding algae)||Top Producing Countries in 2020||Top Exporting Countries in 2020|
|Source: FAO, Statista|
“Many of our decisions are based on intuition and what our ancestors have been doing for the last 60 years,” said Guntur Maralangen, co-founder and CEO of shrimp farm management firm Delos.
And he’s not the only one who thinks so.
“Indonesian fisheries have many old-style players who have passed down traditional business practices from generation to generation,” said Founding Managing Partner and Managing Partner of Singapore-based Insignia Ventures Partners, which invested in FishLog. CEO Yinglan Tan said.
Supporting the “growth” of farmers
According to Tan, the Indonesian seafood industry needs more efficient technology and better processes.
“The only way the industry can grow is if the farmers grow. Unless the farmers grow and expand their business, they can’t actually produce more fish.” Aquatech Startup.
eFishery helps farmers optimize their processes through automatic feeders and mobile apps. Automatic feeders detect the hunger level of fish and shrimp from their movements, preventing overfeeding and underfeeding, a more common problem with manual processes.
Pharisee In 2009, I started a catfish pond to supplement my family’s income while I was a student. By the time he graduated, he managed 76 ponds and began exploring ways to use technology to help farmers.
After that, in 2012, we created a prototype of an automatic feeder and launched it in 2013.
“Feeding costs account for 70% to 90% of the total cost. [automatic feeding] Farizy says automatic feeders can reduce feeding costs by 28%.
Aruna helps connect Indonesian smallholder aquaculture farmers with buyers. The company claims that at 170 locations he works with 40,000 fishermen.
Indonesia has the pieces of the puzzle to become a global leader in aquaculture and seafood production. If you can figure out how to combine them, you should be able to become a seafood powerhouse in the global market.
Co-founder and CEO of Delos
Small-scale fisheries make up about 90% of the total number of fishers, according to Marine Policy, a journal of ocean policy research.
“It is still very traditional in terms of productivity and efficiency,” says Aslam.
He claimed that farmers working with Aruna have been able to sell up to 50% more of their catch. According to reports from the Center for Impact Investment and Practice, Singapore Management University, and Accenture, fishermen increased their income through Aruna from 3-fold to 12-fold.
“Farmers produce what the market needs. This makes the supply chain more efficient, and fishermen know what kind of fish they have to catch and what they can sell for a higher price. It will increase the income of fishermen,” Aslam said.
Potential to become a global leader
According to a 2016 report by market research firm Ipsos, the country already ranks as one of the most productive countries for aquaculture production, even though it utilizes only 7.38% of its total potential area for aquaculture. It has been.
“By properly transferring knowledge and technology in aquaculture best practices, Indonesia can consolidate its position as one of the top aquaculture countries in the world,” said the report.
Aayush Kapoor, vice president of Sequoia Southeast Asia, which invested in eFishery, is also “bullish” on the industry.
“Indonesia being one of the world’s largest fish and shrimp exporters is definitely an opportunity for higher profit margins.The government also wants Indonesia to become an export economy in many sectors, including aquaculture. I support it,” he said.
“Indonesia has the pieces of the puzzle to become a global leader in aquaculture and seafood production. If we understand how to put them together, we should be able to become a seafood powerhouse in the global market,” said Delos. of Maralangen said.