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News from 2023-10-12 / DEG

Indonesia: AgriFinTech provides platform for direct marketing of agricultural products

In Indonesia, the agricultural sector plays a key role as a source of income and for the country's food security. Around 26 million smallholder families and fishermen operate in this sector. Their products are mostly marketed through intermediaries. This trade is often informal and does not provide a reliable income.

To empower producers and traders and to improve their living conditions Indonesian PasarMIKRO has developed an innovative agri trade platform and mobile app for agricultural products. Smallholder farmers and small traders gain access to secure transactions as well as faster payments through this digital marketplace. In addition they are supported with regard to marketing and accounting aspects.

Within the framework of its Up-Scaling programme, DEG now provides PasarMikro with financing totalling EUR 500.000 to further expand the platform.

"We are convinced that agri-focused FinTech solutions serve to make digital payment easier and improve access to finance solutions, thereby contributing to safeguarding incomes," says Petra Kotte, Senior Director Banking & German Business at DEG. “PasarMIKRO’s agri trade platform provides smallholders and agritraders with an innovative access. This investment aligns with DEG's strategy to support digital transformation. We see PasarMIKRO as a key partner in advancing sustainable agriculture."

"We are thrilled to have DEG join us as an investor," said Hugo Verwayen, co-founder and CFO of PasarMIKRO. "Its commitment to impact-first investing aligns perfectly with our mission of empowering marginalised communities in the agriculture sector.”

The platform offers various embedded features including a digital ledger and traceability functionality that captures commodity information right from the farm gate, supporting transparency and accountability throughout the supply chain.

The investment will create around 40 direct jobs at the company and additional jobs at agricultural producers and traders.

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