Agritech startups eye millennials as Indonesia’s farmers age

Indonesia has a strong agricultural identity. Rice cultivation often symbolizes prosperity in the country, and the nation has a tropical climate and fertile soil that supports diverse crops. 

Yet, Indonesia is running out of farmers.

As of December 2023, there were around 28.2 million farmers in the country, with nearly 78% over the age of 40, according to data from Statistics Indonesia.

Photo credit: dani daniar / Shutterstock

The rest are what the government calls “millennial farmers” – those between the ages of  19 and 39. Though relatively few in number, they are increasingly becoming a promising target market for agritech startups, thanks to their openness to eco-friendly practices and modern farming techniques. 

However, these young farmers are also selective, often focusing on higher-margin crops over traditional staples.

Surprisingly, only about 42% of millennial farmers in Indonesia currently use digital tools, despite their tech-savvy reputation. This presents a significant opportunity for startups offering tech-based agricultural solutions.

The performance of the archipelago’s agritech sector in recent years has been mixed. For example, eFishery has even expanded into India, and is on track to go public, though the company is currently facing governance issues, with its board suspending the firm’s CEO and chief product officer. 

But TaniHub has endured layoffs and has had to shift its business focus.

“Strong grasp of tech”

Millennial farmers are strong potential customers for many agritech startups due to their “high adaptability and strong grasp of technology,” says Bambang Cahyo Susilo, chief financial officer of agritech startup Eratani.

Eratani provides services like farmer funding, supply chain management, and crop distribution. While the company didn’t disclose the total number of farmers it currently serves, about 26% of them belong to the millennial age group.

Susilo notes that young farmers are more adept at using digital tools and data to boost efficiency and productivity. This makes them more inclined to adopt modern agricultural technologies like IoT devices, field-monitoring drones, and digital marketing platforms.

Image credit: Timmy Loen

Eco-friendly focus

Shrinking niche market