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TaniHub Targets Direct Export of Local Farmers’ Products Next Year

TaniHub Targets Direct Export of Local Farmers' Products Next Year

The agricultural technology startup (agritech) TaniHub is targeting to be able to export local farmers’ products overseas next year. At present, TaniHub only distributes local farmers’ products to exporters.

“Now it is not direct export but through the facilitation of exporters. Next year the target is we can export,” said Co-founder and President of TaniHub Pamitra Wineka in Jakarta, Tuesday (3/3).

TaniHub Targets Direct Export of Local Farmers' Products Next Year

Pamitra said the company will first strengthen its business and product base in the country. According to him, Tanihub is still focused on serving the demand for agricultural products in the country because the market is large. “So the Indonesian market first, if it’s okay, then go outside,” he said.

However, it does not yet have a specific target in which countries are the export destinations of local farmers. It’s just that he was quite sure that demand from abroad was quite large. At present, TaniHub has collaborated with 30,000 farmers throughout Indonesia.

TaniHub Aims to Capture 1 Million Farmers for the Next 5 Years

For the next five years, TaniHub targets to capture up to 1 million farmers. He is optimistic that the target can be achieved, although there are still constraints on the commitment of the farmers themselves.

Because many farmers who make the profession as a side or a status as a farm laborer. “Our target of 1 million is truly farmers. There are so many farmers in Indonesia, it’s around 27 million in total. But it is not purely farmers, there are laborers, or just horsing,” he said.

In terms of financial performance, over the past year, TaniHub recorded sales growth (Gross Merchandise Value / GMV) of 268.2% compared to 2018. This year, it targets a minimum increase in sales growth of three times.

TaniHub Targets Direct Export of Local Farmers' Products Next Year

Perishable products or fresh products that are easily damaged become the most contributing products to the growth of TaniHub’s business. To achieve this target, the company has built regional distribution facilities in five cities, namely Bogor, Bandung, Yogyakarta, Surabaya, and Denpasar.

TaniHub is also building a processing and packaging facility in Malang and plans to add another one this year.

TaniHub is implementing a new Enterprise Resource Planning system to integrate business processes related to operations, production, and distribution aspects. To facilitate farmers’ funding, TaniHub has fintech lending called TaniFund.

Tanifund Has Distributed Loans to 1,500 Farmers

Which until now, TaniFund has distributed loans to 1,500 farmers with a total loan of US $ 6.2 million or equivalent to Rp 86.8 billion. Loans were given to 140 crop cultivation projects and financing of sales transactions.

Minister of Cooperatives and SMEs Teten Masduki said, MSMEs in the agricultural sector need partners like TaniHub to accelerate business growth. In the agriculture and fisheries sector, he is collaborating with startups including TaniHub.

Also, other startups that were also involved included Sayurbox and Aruna. “In the village, there is already an internet. What is needed is not a methodology. What is needed is a seller who can become an online seller for micro sector products. It needs as much as possible,” Teten said in Jakarta, Tuesday (3/2).

TaniHub Targets Direct Export of Local Farmers' Products Next Year

TaniHub Plans an Expansion Abroad After Passing GVV Training

The company is also one of six startups that have successfully participated in the Grab Ventures Velocity (GVV) program, which was implemented in mid-2019. today (3/3) in the South Jakarta area.

At the event, Eka as an alumnus of the training program gave several testimonies. Eka said that the GVV program has helped TaniHub to be able to further develop its work programs.

“This program is useful because after participating in GVV batch 2, TaniHub is able to increase the number of subscribers to 1,000 users in one month,” said Eka in her presentation session.