e-rice:Double productivity Half the emission Sustainable rice farming tools based on System of Rice Intensification method Arief Sanjaya – Electrical Power Engineering, M.Sc. Program Hilman Prasetya Edi – Sustainable Energy Systems, M.Sc. Program Shelty Juliavonni – Sustainable Energy Systems, M.Sc. Program
2 Untapped Climate Opportunity in Indonesia’s Agriculture Sector How to Supply Rice in a Sustainable and Low Carbon Way E-rice is decarbonizing and modernizing rice farming in a low-cost way, suitable for farmer’s financial condition Indonesia’s Trilemma in Agriculture Sector Balance of Land Use Change Farmers Prosperity Low income (± £2/day) Supply-Demand e-rice: Making Technology Accessible to Farmers #1 Automated Water and Fertilizer Control, Powered by Solar PV #2 PPC Gives Access for Farmers to Utilize e-rice System mediaindonesia.com mediaindonesia.com
3 SRI Method Developed by Indonesian for Indonesia Modern and Sustainable Farming Method E-rice makes SRI method easier to use and ready to be deployed in remote areas Automation of SRI Method Powered by Solar PV COMPLEX FARM e-rice OPERATION Ease of Operation Suitable for Remote Areas System of Rice Intensification (SRI) Less Seeds, Less Water, Compost Fertilizer 84% Less Seeds • 66% Less Water • Utilizing Compost Fertilizer • Double Production/Area, Halving CO 2 Emission/Area 5 ton/ha à 10 ton/ha •
4 E-rice Designed Based on Farmer’s Point of View Making It Easier to Use and as Engaging as Possible E-rice is targeting rice farmers around province’s capital city who are well educated and open minded towards modernization Quick Yield – High Income – Strong Resilience £26.9k Productivity Performance Contract (PPC) Early Development Stage Net Present Value Angel Investors Engaging Farmers Increased Revenue by applying 187% Grant Funding Scheme e-rice (GBP/hectare) Producer revenue Consumer as installment payment surplus Flat IRR Revenue Further Development Stage 0.88Y B u s i n e s s a s U s u a l Government’s Soft loan / Year Contract Duration Payback Period subsidy Concessional funding Finish Start PPC Gives Access to Technology Without the Capital Burden 1.PPC based payment 2.7.5% engagement budget from total price 3.Partnership with local Polytechnique & technicians 4.Capacity building for user
5 To Become the Biggest Agriculture System Provider With 25% Market Share in the Next 10 Years Starting from 100 deployed system to gain trust from Indonesian Farmers S H O R T T E R M T A R G E T L O N G T E R M T A R G E T 100 e-rice devices 25% of market share Risk and Mitigation Plan Scalability and Implementation Social Risk: Farmers resistant to change 1. Register e-rice system patent Mitigation Plan: PPC as accessible financial scheme • 2. Lesson learned from deployed units Highly engaging customer service • Cooperation with local government & businesses • 3. Capital for workshop and manpower expansion Financial Risk: Higher costs (due to Covid-19) 4. New emission restriction regulation Mitigation Plan: Finding other capital source • Providing emergency working capital to user • 5. R&D grant to accelerate learning rate Seeking business interruption insurance •
6 Make Farmers Prosperous Again, in a Sustainable Way By Giving Proper Guidance and Education If we don’t care about our country, then who else? Short term impact • Avoiding potentially 471 million tons CO 2 from land use change • Reducing GHG emissions that comes from conventional farming practices • Increasing Farmer’s revenue stream Long term impact • Improving national food security • Preserving biodiversity • Developing a sustainable and growing economy for farmers • Farmers regeneration £225k First 100 Unit Deployment 1. IRR for investment 8% Investment required 2. MIRR for investment 8% 3. PBP at 2 years Indonesia Travel
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