Best Ideas 2018 features all the nominated entries submitted to the Youth Citizen Entrepreneurship Competition under ‘Submit your Idea’ category. All the entries consist of innovative solution or proposition for an enterprise that champions the Sustainable Development Goals. They can be on the conceptual, planning, or start-up stage. If you want to know the 10 finalists in this category, click HERE
EraTani : Sustainable Capital Loan for Farmers in Outermost, Borderline, and Underdeveloped Region
Explain your idea in details:
Indonesia is the biggest archipelago country. Unfortunately, the result of national development has not yet evenly distributed to remote areas along the borderlines. This area has not been touched by the development process, accessibility to this areas is also still very difficult. In bahasa language it called 3T region (Terdepan, terluar, tertinggal) or outermost, borderline and undeveloped region. As a result, the majority of people in 3T region was left behind from the social, economic advancement from other region. The majority of the population of 3T region work as farmers, but because they are located in remote area, they often difficult to getting a loan for their capital and the connection to market accessibility is very minimum. With these problems become the base of Era Tani idea. EraTani is an idea to make the website as an alternative search for capital funding and market access for farmers in 3T region by integrating farmers, markets and sociopreneurs in an effort to empower communities, especially farmers in creating food security and advancing the economy through sectors agribusiness as the local potential of the 3T region as well as finding the mechanism of capital flow and product handling to ultimately produce a more established capital base. In the other side EraTani is also connecting EraTanis farmer to gain market access for them who wants to export their farm products to the other regions by paying their products following the market price. Maybe the loan amount that they proposed and the product they want to export might seem to be small, but with the right approach we believe that amount will be a chance for the 3T region economic growth trought agribusiness sector to achieve food security and reduce poverty, zero hunger, and economic growth as one of the Sustainable Development Goals.
Expected impact of your idea on sustainable development
The agricultural sector that be the base of this idea have a significant contribution to reach Sustainable Development Goals. Agricultural in this case its also included livestock. So, the agricultulral became the leading sectoral of this program. The agricultural is directly related to SDGs that is No Poverty and Zero Hunger goals. The main role of agricultural in SDGs can be seen from 17 goals and 169 targets that focus on poverty and hunger alleviation. Towards the target of the SDGs by 2030, Indonesia is working hard to reduce national poverty through agriculture. Poverty is still a problem as the poor still make up 10.86 percent of Indonesia's population. The balance of rural and urban infrastructure development, rural agroindustry has a major impact on poverty alleviation. The pockets of poverty are in the outermost and undeveloped region in Indonesia or 3T regions. In the other side, sociopreneurs become poverty alleviation solutions within the framework of SDGs. Sociopreneurs are also expected to be an accelerator for the economy as well as the entrepreneurial climate in the upstream that is engaged in agriculture. This program is certainly able to cultivate entrepreneurship in the upstream to provide inspiration and development of agricultural technology innovation that creates value-added food products and saves farming costs so that the impact on improving welfare. The execution of this project is expected to open a large accesbility for 3T reginons people business especially in agribusiness as the local potential in 3T region to gain quick, save, and non-interest loans. With those accessibilities, we expected the farmers contribution to the 3T regions economic growth and also can have a positive impact on the achievement of sustainable development goals.
Plans for implementation and sustainability
Capital loan is basically a high-risk business, because generally loans given through the platform do not require collateral as a second way-out in the event of default. To maintain the quality of invested capital and minimize the risk of default, it is necessary to have a credible credit analyst team for each user. This team is tasked with selecting each loan application by prioritizing prudential principles. EraTani is a platform that connects farmers in 3T regions who need capital loan with the sociopreneurs who are interested in obtaining financial benefits as well as providing social impact and economic development in 3T regions. The funding provided by sociopreneur to farmers is based on transparent principles, and legal in accordance with applicable law in Indonesia. In the other side EraTani is also connecting EraTanis farmer to gain market access for them who wants to export their farm products to the other regions by paying their products following the market price. With a 60% yield-sharing ratio for farmers, 30% for deposit, and 20% for profit. Deposit is used to cover losses between farmers, and EraTani if at any time the price of goods on the market plummeted. The main obstacle in the implementation of this program is the limited communication and transportation to the 3T area. For that EraTani will also build a Agricultural marketing cooperative where farmers pool their resources for mutual benefit. Agricultural marketing includes a series of interconnected activities involving planning production, growing and harvesting, grading, packing, transport, storage, food processing, distribution and sale. Maybe the loan amount that they proposed and the product they want to export might seem to be small, but with the right approach we believe that amount will be a chance for the 3T region economic growth to one of the Sustainable Development Goals.
I am 18 years old, born in November 1999 and I am originally from Jakatra, Indonesia. I am Education of Informatic Student. Im also member of Informatic Academic Forum in my campus. Since highschool, precisely after following STEM Camp, I often actively participate in paper writing, seminars, and training. From there, I learned lot of things, heard lot of stories. One of them, I learn a lot of potential from Indonesia that has not been exploited by the Indonesian people especially in outermost, undeveloped, and border region or 3T region. And I relized that Indonesia isnt poor country, Indonesia is rich country, but unfortunatly Indonesia is poorly manage with those potential. With lot of local potential in 3T region especially in agricultural sector, I hope it can reduce poverty, can create zero hunger, and economic growth as one of the Sustainable Development Goals. I thought about this idea of EraTani can help the peoples especially the farmer in 3T region through this platform. This idea was inspired by another previous similar platform like amartha and tanijoy. But the different with this idea is EraTani more focused in the 3T region and EraTani also provide livestock farmer in the option to join this platform. Because there are 165 3T regions that spread in Indonesia and I know in the different region there are a different potential that they got. Through this initiative, I am determined to create and develop innovative ideas that will have a positive impact for Sustainable Development Goals and also especially for my homeland, Indonesia.