Heaptalk, Jakarta — Indonesia-based agritech Eratani inks a Memorandum of Understanding (MoU) with Bank Sulawesi Selatan and Barat (Bank Sulselbar) to provide loans of up to US$6,490, equal to Rp100 million, to farmers around the region.
Eratani’s farmer partners can access financing with lighter requirements and faster processes, from Rp1 million to Rp100 million per person. However, this financial support has been adjusted to the cost budget plan (RAB), designed based on specific requirements.
According to Andrew Soeherman, CEO of Eratani, this strategic collaboration will allow farmers to gain more straightforward and affordable access to financing. He believes this financial support will be a driving force for increasing farmers’ productivity and welfare.
In 2023, Eratani announced its additional seed funding round worth US$2 million, led by SBI Ven Capital through a point fund with Kyobo Securities and NTUitive. Several well-known investors supported this round, including Genting Ventures, Orvel Ventures, and Ascend Angel.
This fresh injection augmented its previous fund, which had been collected worth US$3.8 million, from TNB Aura, AgFunder, B.I.G. Ventures, and Trihill Capital last December 2022. This new achievement increased this agritech startup’s investment value to US$5.8 million (around Rp90 billion). With the new additional capital, Eratani plans to broaden its network into five of Indonesia’s provinces, expecting to enhance efficiency in the agricultural industry.
As is known, this agritech partnered with over 24,000 Indonesian farmers in multiple regions across West Java, Central Java, East Java, and South Sulawesi, as well as 600 agricultural kiosks and 70 rice milling units. As a result, the startup has boosted about 29% of agricultural production.
“The agricultural sector is an essential pillar in the regional economy. By providing People’s Business Credit (KUR) and People’s Business Fund (PUR) facilities, we hope that Eratani’s farmer partners can develop their businesses more optimally.” Director of Credit and MSMEs at Bank Sulselbar, Dwi Zulkarnain, said.
