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. ProgramHilman Prasetya Edi – Sustainable Energy Systems, M.Sc. ProgramShelty Juliavonni – Sustainable Energy Systems, M.Sc. Program

Untapped Climate Opportunity in Indonesia’s Agriculture SectorHow to Supply Rice in a Sustainable and Low Carbon WayE-rice is decarbonizing and modernizing rice farming in a low-cost way, suitable for farmer’s financial condition

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Indonesia’s Trilemma in Agriculture Sector

Balance ofSupply-Demand

Land Use Change Farmers Prosperity

e-rice: Making Technology Accessible to Farmers

#1 #2 PPC Gives Access for Farmers to Utilize e-rice System

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Automated Water and Fertilizer Control, Powered by Solar PV

Low income (± £2/day)

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SRI Method Developed by Indonesian for IndonesiaModern and Sustainable Farming MethodE-rice makes SRI method easier to use and ready to be deployed in remote areas

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Less Seeds, Less Water, Compost Fertilizer

Double Production/Area, Halving CO2 Emission/Area

System of RiceIntensification (SRI)

• 84% Less Seeds• 66% Less Water• Utilizing Compost Fertilizer

• 5 ton/ha à 10 ton/ha

COMPLEX FARM OPERATION e-rice

Automation of SRI Method

Ease of OperationSuitable for Remote Areas

Powered by Solar PV

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 ResilienceProductivity Performance Contract (PPC)

Increased Revenue by applying

e-rice

B u s i n e s s a s U s u a l

Producer revenueas installment payment

Consumer surplus

Reve

nue

(GBP

/hec

tare

)

YearContract Duration

Start Finish

Engaging Farmers

£26.9kNet Present Value

187%Flat IRR

0.88YPayback Period

E-rice Designed Based on Farmer’s Point of ViewMaking It Easier to Use and as Engaging as Possible

Grant Funding Scheme

Angel Investors

Early Development Stage

Further Development Stage

Government’s subsidy

Soft loan / Concessional funding

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PPC Gives Access to Technology Without the Capital Burden1.PPC based payment2.7.5% engagement budget from total price3.Partnership with local Polytechnique & technicians4.Capacity building for user

Starting from 100 deployed system to gain trust from Indonesian Farmers

To Become the Biggest Agriculture System ProviderWith 25% Market Share in the Next 10 Years

100 e-rice devices

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

Risk and Mitigation PlanSocial Risk: Farmers resistant to changeMitigation Plan:• PPC as accessible financial scheme• Highly engaging customer service• Cooperation with local government & businesses

Scalability and Implementation

25% of market share

Financial Risk: Higher costs (due to Covid-19)Mitigation Plan:• Finding other capital source• Providing emergency working capital to user• Seeking business interruption insurance

1. Register e-rice system patent

2. Lesson learned from deployed units

3. Capital for workshop and manpower expansion

4. New emission restriction regulation

5. R&D grant to accelerate learning rate

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If we don’t care about our country, then who else?

Make Farmers Prosperous Again, in a Sustainable WayBy Giving Proper Guidance and Education

Indonesia Travel

Short term impact• Avoiding potentially 471 million tons CO2 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

£225kInvestment required

First 100 Unit Deployment1. IRR for investment 8%2. MIRR for investment 8%3. PBP at 2 years

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