Grow-Your-Own-Food Anywhere, Anytime

Food supply chain problems in Indonesia are pessimum; let us explain to you more elaborate data.

Indonesia is an archipelago country, we have more than 10,000+ islands and multiple geographies, which counts as an urgency to set up multiple hubs to deliver any farm produce to the table in urban cities.

To provide a clearer picture of the food supply chain problems in Indonesia, it is worth highlighting some statistics. According to a report by the Food and Agriculture Organization (FAO), Indonesia loses approximately 350 kilograms of food per second, which amounts to about 9.5 million tons of food waste every year. This is a staggering number, considering that Indonesia is still grappling with food insecurity, and millions of people lack access to adequate nutrition.

Moreover, Indonesia's food supply chain inefficiencies are costing the country's economy billions of dollars annually. The World Bank estimates that food loss and waste cost Indonesia's economy about USD 4.3 billion per year, equivalent to 1.3% of the country's GDP. This is a significant amount of money that could be better used to address other pressing issues, such as poverty and inequality.

As the population in Indonesia arises to more than 280 million nationwide, it is worth noting that the amount of food loss and complexities will be tremendous if there is no extreme measure to solve one.

The COVID-19 pandemic has also had a significant impact on Indonesia's food supply chain. A survey conducted by the Indonesian Food and Beverage Association found that food sales had dropped by 20-30% during the pandemic, and many businesses were forced to close due to reduced demand. The pandemic has also resulted in disruptions to food logistics, particularly in terms of transportation and distribution. This has led to food shortages and higher prices, making it even more challenging for vulnerable communities to access adequate nutrition.

Overall, the data shows that Indonesia's food supply chain problems are complex and multifaceted. They require a concerted effort from all stakeholders to address, from the government and private sector to civil society. Investing in infrastructure, improving coordination, and making modern technologies and practices accessible to farmers are critical steps toward reducing food loss and waste and achieving food security for all Indonesians.

Akar manufactures and distribute modular indoor farming in strategic center consumption of urban communities; retailers, supermarkets, malls, restaurant, cafes, all the way to schools and universities. 

Our units are capable of being stacked from 1 layer (80 cm high) all the way to 10 layers (450 cm high). We place 9 sensors inside the unit to make everything automatic, from watering the plants to injecting plant nutrition.

Akar made everything in-house; LED grow light, frame unit, way to sensors, and IoT. Akar place the unit in off-takers, then we charge them fix the monthly fee to cover maintenance, nutrition, and seedlings.

On top of that, there is also profit sharing for off-takers who wanted to sell again the produce harvested from Akar units.

For self-consumption (hotels, cafes, restaurants), Akar charges per number of holes in which seedlings have been requested from the off-takers.

Akar highlights its ability to become an upstream agriculture-tech player as a manufacturer, and facilitator for any off-takers in Indonesia to make food self-sufficient and unlocks the ability to grow your own food independency.

Akar as modular indoor farming is a relatively new concept that has been gaining traction in recent years, particularly in urban areas where access to fresh, high-quality produce is limited. In Indonesia's urban market, the target population that will benefit from modular indoor farming is vast, ranging from households and restaurants to hotels and supermarkets.

One of the significant challenges facing Indonesia's urban market is food insecurity, particularly during natural disasters. The country is prone to earthquakes, floods, and volcanic eruptions, which can disrupt food supply chains, leaving urban populations without access to fresh produce. In such situations, modular indoor farming offers an alternative source of fresh produce that is not dependent on external supply chains. This enables individuals and businesses to have a reliable supply of fresh, healthy produce, regardless of external conditions.

Furthermore, Indonesia's urban market is characterized by long food miles. The majority of the produce is imported from other countries or transported from rural areas to urban centers, resulting in high transportation costs and carbon emissions. Modular indoor farming eliminates the need for transportation, as the produce is grown and harvested on-site, reducing food miles and associated costs. This makes it an environmentally sustainable solution that can help businesses achieve carbon emission compliance and reporting.

Some of our piloted off-takers are currently able to save 2-3 employees' salary on warehouse-related jobs, cuts common practices to order from farmers 1,500+ km away from the stores, and 70% emission carbon cut compared to the conventional distribution in agriculture practice.

Another target population for modular indoor farming in residential areas. We are piloting 2 units, in 2 locations now.

Many urban households in Indonesia struggle to access fresh, healthy produce due to limited space, poor soil quality, and limited sunlight. Modular indoor farming offers a solution to this problem, as it requires minimal space and can be set up in any location, home garage for example, regardless of soil quality or sunlight exposure.

This makes it an ideal option for households that want to grow their own fresh produce and reduce their dependence on external supply chains. Or they are able to sell it back again to nearby B2B off-takers that has an existing contract with Akar and share profit, and increased income! 

Not only we are a domain-expert team, 8 out of 15 people inside our team are farmers. Let me tell you a story:

The story began back in 2019, the CPO and I made a 300-meter square greenhouse in the Bandung area then expanded yearly up until now we have a greenhouse under 1,200-meter square land.

We serve approximately 200 customers monthly in this greenhouse, ranging from individuals all the way to B2B off-takers. A few times a month we also do education-based learning to nearby children and mothers about hydroponics and the importance of learning about plants and their agronomic methods.

However, in early 2022, our greenhouse got pests attacked and it caused significant financial and environmental damage. This was the trigger for us to start an indoor farming project.

We scaled to the indoor farming project after we interviewed our greenhouse clients; what are their needs, their wants, and their capabilities? Akar understands it doesn't make sense to make a well-engineered unit without proven market validation. Akar made its first prototype in early 2022.

Overall we know in order for this project to scale organically; we started with its community, giving them proper education what is agronomy and agriculture, how to preserve the environment, all the way to several methods to grow their own food.

We are currently in the pilot stage of 25 units of Akar in 30 different locations.

The location ranges from retail stores to hotels. Approximately per location, there is 10-50 employees.

Therefore around, 1000 people, more or less.

The Akar project is matching with Indonesian government's agenda; envisioning a Green Nation by 2030. Akar units currently being used into more various usage, apart from what we are expected them to do. Some of them sell the product to their existing customers; some use us for emission carbon reporting; some also use Akar for self-consumption for enterprise kitchens all the way to residential areas. 

We are applying to Solve because we would greatly benefit from assistance with our scale and revenue models, Akar needs bio/hardware/deeptech advisors in order to hyper-scale our project for the benefit of Indonesia, and bigger to ASEAN regional level.

In Indonesia, modularity in vertical farming by renting the unit to consumers is a much more efficient approach than the big warehouse model vertical farming that requires larger space. This is because of the unique logistical challenges faced by Indonesia in delivering vegetables and fruits from farms to consumers.

Indonesia is an archipelago nation with over 17,000 islands, which makes transportation of goods a daunting task. On top of that, the country has a vast population of more than 280 million people, with many living in urban areas, which can be difficult to access due to heavy traffic and congested roads.

By using a modular approach to vertical farming, AKAR can bring the farms closer to the consumers, reducing the need for long-distance transportation. The AKAR units can be placed in urban areas, such as shopping malls, hotels, or residential buildings, allowing consumers to have access to fresh produce within minutes of harvesting.

By the way we can also hyper-scale our product inside one of Jakarta mall like this, here is the project we will execute Q4 2023:

Moreover, modular indoor farming units have several advantages over the big warehouse model. Firstly, they require less space (AKAR is only 1.5-meter square needed), making it easier to install them in urban areas where space is at a premium. Secondly, they are more energy-efficient, reducing the carbon footprint associated with large-scale farming operations. And thirdly, they can be customized to grow a variety of crops, allowing farmers to respond to changing consumer demands.

According to recent data, Indonesia has been facing significant challenges in delivering fresh produce to consumers. One of the main challenges is the lack of reliable and efficient logistics infrastructure, which makes it difficult to transport goods from rural areas to urban centers. This results in significant food waste and spoilage, which can have severe economic and environmental consequences.

We are looking to distribute in a total of 5,000 modular units. This is achievable by using plastic injection molding technology and needs to be manufactured. Significantly lower cost (60% off COGS) with a 10x production capacity increase per month.

1. Number of plant holes manufactured : 25,000 plant holes so far

2. Number of people and food business impacted : 1,000 people, 22 business

3. Number of energy, water, and land saved per unit deployed : 85% less resources

4. Number of CO2 emissions cut : 71% less compared to conventional farming distribution

As we bring the food closer to our consumers, the logical framework of AKAR's modular farming is as follows:

1. Inputs: AKAR's modular farming unit requires inputs such as seeds, water, electricity, and nutrients to grow crops.

2. Activities: AKAR's activities include installing modular farming units in urban areas, planting seeds, monitoring crop growth, and harvesting the produce.

3. Outputs: The outputs of AKAR's modular farming unit include fresh and healthy produce that is available to consumers within minutes of harvesting.

4. Outcomes: The outcomes of AKAR's modular farming unit include:

• Improved food security: By providing fresh produce to consumers in urban areas, AKAR can help improve food security by reducing reliance on long-distance transportation and increasing access to nutritious food.

• Sustainability: AKAR's modular farming unit is designed to be energy-efficient and environmentally friendly, reducing the carbon footprint associated with large-scale farming operations.

• Economic development: By providing a reliable source of income for farmers and creating new jobs in urban areas, AKAR can help drive economic development in Indonesia.

5. Impact: The impact of AKAR's modular farming unit is a healthier and more sustainable food system in Indonesia, with improved food security, reduced environmental impact, and increased economic opportunities.

We use 9 sensors combined with Raspi and WemOS for our IoT to control and trigger automatically our modular farming uni

We also use self-made nanobubble to inject 1.5x oxygen into the water that circulates inside our unit

At last, we are still in research how to bring our unit off-grid: easier to farm energy and be independent when it comes to capabilities; anywhere and anytime.

We filed 6 patents so far in less than 7 months.

Here are breakdown of 15 of our employees:

Gender : 10 male, 5 female

Religion : 8 moslems, 5 christians, 2 agnostics

Capabilities : 11 engineers, 4 management

We are planning to make an equal gender and safe space for work!

Straight-forward; we use Farming-as-a-Service model:

1. We charge a US$33 monthly fee per Akar unit to cover our maintenance, seedlings, and nutrition

2. On top of that we have 40% profit sharing to Akar for whatever produce is sold from our unit to the customers. However, for self-consumption, we charge per plant hole as low as $0.5!

In revenue, we already made US$10,000 since Q3 2022 in our pilot stage. The minimum rent for AKAR is 6 months. Therefore, our customer lifetime value is 6 months.

To become financially sustainable and breakeven AKAR needs to rent 250 units. That is able to generate revenue monthly $75,000 with gross margin of 60%.

Currently, right now a pipeline of AKAR includes:

• Access to the biggest supermarket chain in Indonesia, Superindo, 220 chains. We pilot on their HQ.
• Access to the biggest minimarket chain in Indonesia, Indomaret 18,000 chains, and Alfa Group, 21,000 chains. We are in discussion to pilot.
• Access to Novotel Hotel Group of Accor, currently a pilot in their basement and dining room.
• Access to Marriot Group Hotel, currently in internal discussion to execute 20 units/locations inside their hotel.

Grants received from government and universities : $50,000

Revenue received: $10,000

Investment raised from Antler Cohort 2, November 2022 : $100,000