Wirausaha Hijau Learning Report

Indonesia’s agricultural sector continues to grow and contributes a significant share to national economic growth due to high demand and an increase in supply-side actors. The agriculture sector in Indonesia is expected to reach US$ 151.1 billion in 2020, with a Compound Annual Growth Rate (CAGR) of 6%.

Innovative impact investments or the efforts to create new investment models or structures to address available gaps in the market can enhance the maturity of the sector. Agroforestry and fisheries are considered to have great potential for impact investing in agriculture and food systems. Unfortunately, impact investments are restricted to certain types of businesses in this sector. Investors often focus on downstream solutions, such as market access and financial access, rather than upstream solutions. Additionally, impact investors are limited in certain circles, such as among entrepreneurs in big cities, despite the fact that impact investments can still spur innovation and sector growth.

Wirausaha Hijau Program is motivated by the lack of access to capital, poor capital profile match and insufficient ecosystem support. Wirausaha Hijau targets entrepreneurs with innovative solutions to challenges associated with agricultural and sustainable food systems. The program is based on the principles of Local, Tailored, Sustainable, and Inclusive. Through access to funding, tailored mentoring, and strategic partnerships, the program aims to encourage innovation and entrepreneurship in Indonesia’s agricultural and food system value chain.

Wirausaha Hijau, organised by ANGIN, consists of three main components: mentoring, open office hours, and networking sessions. Early stage agriculture companies face a variety of challenges based on the nature and backgrounds of their businesses, among other factors, which explains the curated mentorship approach.

There have indeed been intangible benefits for entrepreneurs and the industry as a whole from the program. Effective key mentoring areas, high engagement from both mentors and entrepreneurs, and strong continuation have all indicated the program’s success. Nevertheless, there are several issues to consider as reflections of the program, such as limited availability of entrepreneurs outside urban areas, high volatility for early-stage companies, and a readiness gap between available funds and businesses’ readiness after the program.

In order to support the growth of the agriculture industry, all stakeholders need to work together and create a favourable agricultural business ecosystem. To increase the appetite for agriculture businesses in Indonesia, entrepreneurs need to actively seek support and enhance their network, investors must find an innovative investment structure for the missing middle, enablers must devise models of hybrid business mentorship, and governments must ease the burden of doing business in non-urban areas.

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