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Open Food Network Indonesia

A global network of community-driven food distribution enterprises, enabling the regeneration of landscapes, soils and local economies.

Photo of Open Food Network Indonesia
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Lead Applicant Organization Name

OFN INDONESIA

Lead Applicant Organization Type

  • Small NGO (under 50 employees)

If part of a multi-stakeholder entity (i.e. team), provide the names of other organizations and types of stakeholders collaborating with you.

Open Food Network Australia, Open Food France, Open Food Network UK Katuma, Open Food Network Scandinavia, Open Food Network Canada, Open Food Network USA, Open Food Network Belgium and Luxembourg Oxfam Magasins du Monde, Open Food Network South Africa, Open Food Network Germany

Website of Legally Registered Entity

www.openfoodnetwork.id

How long have you / your team been working on this Vision?

  • Under 1 year

Lead Applicant: In what city or town are you located?

JAKARTA

Lead Applicant: In what country are you located?

INDONESIA

Your Selected Place: what’s the name of the Place you’re developing a Vision for?

whole agriculture area in Indonesia

What country is your selected Place located in?

INDONESIA

Describe your relationship to the place you’ve selected.

Our food system is a major driver of the greatest challenges humanity is facing: climate change, ecosystem collapse, plastic and chemical pollution, diet-related disease, hunger, farmer poverty and suicide, social isolation, modern slavery.

The Indonesian farmers is statistically getting down up to 35,900,000 farmers. One of the reason is they don't able to compete within modern trade system.

 We are absolutely sure, the difference of farmer price and market price would be decline when the distribution line of food supply chain from the producers to the eaters is getting short and efficient. The objective is to encourage increment of price the farmers level and decrement market price. Finally the increment of the farmers welfare

With the fully honor, we create and develop the start-up company that's not profit oriented. That is openfoodnetwork.id. to help the farmers getting the solution to directly market and getting the transparant information about distribution line. With the crowd funding system we don’t want to burden the farmers economically.

Describe the People and Place: Provide information that would be helpful for an outsider who has never been there and may have no context about this Place to better understand the area.

Indonesia is the largest archipelagic country in the world, lies in total area of 7.81 million km2 with 2.01 million km2 of land, 3.25 million km2 of ocean and 2.55 million km2 of the Exclusive Economic Zone (EEZ).

Indonesia comprises of 17,504 islands, among which five of them are the largest islands namely Sumatra, Java, Kalimantan, Sulawesi and Papua which also has the highest inhabitant rates.

In terms of government, Indonesia is divided provincial, districts, sub-districts and village administrative areas

Indonesia has total number of 34 provinces, 514 districts and cities, 7,094 sub-districts and 83,447 villages of 26% of the total land area is inhabited by 269.6 million people in 2020.

Indonesia is the agriculture country which was have various high quality agriculture products. Those were ever having great agriculture and it's products were able to fulfill their life. The people economy rely the farmers capabilities to sell their own agriculture products with flexible, easier and good prices.

Indonesia has two seasons—a wet season and a dry season—with no extremes of dry and rains hence very suitable for massive agricultural cycle. Indonesia’s main commodities are rice, corn, sago, Soybeans, Vegetables, Fruits as well as livestock and fishery products.

The various agriculture products were harvested by Indonesian farmers such as foods, fruits, vegetables and also industry plants such as for cosmetic and health.

Unfortunately now it's being in the worse condition. The Indonesian farmers got only a small of sales profit. Most of the profit was taken by third party. The third party had link from the producers up to the eaters. They got bigger advantages by control the distribution line of the food supply chain. But the opposite the farmer are getting down unable to cover their cost of productions.

What is the approximate size of your Place, in square kilometers? (New question, not required)

7810000

What is the estimated population (current 2020) in your Place?

269600000

Challenges: Describe the current (2020) and the future (2050) challenges that your food system faces.

The distribution line of food supply chain and the  sales of harvest through long ways and many third party that having information, knowledge and infrastructure better than the farmers. The sales price at the farmers was pressed and nothing the options because the lack of information about the market need and sales price.

The farmer have lack of information access about market price and they were unable to have direct communication to the distributors or consumers. Lack of transparency for market price, product quality, market need, inventory and government policy.

Getting further was getting worse even within the trading system based on information technology. Because the farmers didn't have those facilities.

Intervene to the policy would be getting worse the farmer economically. They would not be able to compete with import products.

The farmers should be helped with system and facility that not burden them economically. Once it works they will able to support to the systems and facilities themselves automatically. The hope,  the crowd funding system could be run simultantly.

Address the Challenges: Describe how your Vision will address the challenges described in the previous question.

We connect a global community of committed people, to work together on effective solutions.

We produce and openly share management and networking tools and sectoral knowledge resources, through research and software development. 

We support an ecosystem of locally embedded partners, delivering services that make these tools and knowledge relevant and easily accessible.

Expose the wider information about market price transparency, the market Inventories, product qualities, distributors / consumers location, producers location. 

The objective is to cut the long distribution line of food supply chain. 

Automatically would cut additional cost, increasing sales price at the farmers level, decreasing market price. 

Finally the benefit would be get to the farmers.

High Level Vision: With these challenges addressed, now provide a high level description of how the Place and the lives of its People will be different than they are now.

Short term outcomes (0-5 years): 

- The Open Food Network is democratically managed by a community of contributors all over the world, who implement together new ways of working based on wholeness, empowerment and consent-based decision making. 

- Actors of the food system can easily find, connect and learn from one another through the Open Food Network, and have access to adapted management tools, enabling them to build efficient distribution systems 

- The Open Food Network hosts a comprehensive set of resources and tools including software, use cases, sectoral analysis and best practice to achieve economic viability. 

Intermediate term outcomes (5-10 years): 

- Every community-driven food distribution enterprise in the world has access to the Open Food Network resources in their language and can use them to support their performance and sustainability 

- Every citizen in the world looking online for a community-driven distribution hub can easily find one through the Open Food Network, or is proactively supported to create one through turnkey knowledge resources and tools

 - Any existing mainstream food enterprises willing to pivot are supported to switch towards community-driven food production and distribution models by the Open Food Network community In our long term vision: 

- Sustainable farming practices are commonplace, supported by a network of community-driven food distribution enterprises, enabling the regeneration of landscapes, soils and local economies 

- The food system is composed of diverse and inclusive food enterprises using models and tools that suit their context and are modelled on natural patterns 

- Food sovereignty is underpinned by technological sovereignty: all actors of the food system have a common ownership of knowledge, tools and infrastructure that enable collaboration through seamless interoperability.

Full Vision: How do you describe your Vision for a regenerative and nourishing food future for your Place and People for 2050?

SUMMARY

Indonesia is an archipelago country with its agricultural centres spread across the islands. Transportation is vital to deliver goods to customers; therefore business chain of agricultural product requires cost and time.

Traditionally, farmers can only wait brokers and collectors (third parties) to find market for their crops because it is believed these parties have superior knowledge about crops market and its distribution. These brokers and collectors often also have long business chain involves several parties which cause additional costs and create market price for the customer.

If this chain is longer the difference between market price and the farmers’ price will even be greater. In fact, sometimes the gap between market price and farmers’ price can be really big because the farmers are pushed to accept low price. The root of problem is farmers and costumers do not have sufficient information about the products namely where to get them, their market prices, the types and qualities of the products.

If it is possible for farmer to increase the price of crops to a reasonable level, farmers can improve the quality of their products, decide to use sustainable process and preserve the agricultural land and environment.

JAPATI offers an idea to shorten the distribution length in order to improve efficiency, raise crops price for farmers and lower the market price for customers by providing an IT-based information system that can be accessed by costumers and farmers to create transparency in prices, location of farmers/consumers and quality of products.

This system will shorten the product distribution chain to costumers, thereby reducing the costs of collectors. Moreover customers will be able to directly communicate and trade with farmers without brokers.

BACKGROUND

Agriculture is an activity of utilizing biological resources by humans to produce food, industrial raw materials or energy as well as to manage their environment. Cultivating plants and livestock are the most well-known agricultural activities.

Agriculture in a broader sense includes all activities that involve the use of living things (including plants, animals and microbes) to benefit humans. In the narrow sense, agriculture is defined as the activity of crop cultivation, both in the form of cultivating plants on paddy fields and plantations.

As an archipelago and agricultural country, Indonesia has various types of agricultural products which are spread in various islands. Likewise, consumers are also scattered in the archipelago. Some products are only available in a few places while consumers can spread in other islands.

Trade of agricultural products held every day in large volume. Nowadays more of the transactions take place directly in markets, shops, mini markets and malls.

Historically, the number of farmers decrease over the years and a large number of agricultural land has been converted in to residential and industrial area. The decline of agricultural land will contribute to climate change globally.

Many farmers left farming, sold their land to residential developer and decide to take other jobs. One of the reasons is because agricultural sector is less productive and efficient compare to other sectors. 

PROSPECTS

Agricultural sector has a great potential since historically Indonesians relied on jobs as farmers, fishermen and stock farmers since the early days as a nation. The country itself is home for various animals and rich in biodiversity. With a population of 296,6 million, it is safe to say Indonesia has huge market for crops and livestock.

Farmers are expected to manage the supply of agricultural products as well as maintain sustainable farming and preserve the ecosystem in order to keep farm land as the world’s lung. Farmers are also expected to increase farming land as water absorption.

A population of 269,6 million, Indonesia requires a lot of commodities to meet food demand such as rice, corn, sago, vegetables, meat and fish. The demand will keep increasing in line with population growth.  The number of farmers needs to be maintain to balance the supply of food and meet the demand from consumers.

From the trade balance (as of September 2014) the Agriculture and Plantation sector have greater exports than imports, while the food crops, horticulture and animal husbandry are still more than those imported.

WEAKNESS

Trade for agriculture, plantation, horticulture and livestock sectors in Indonesia are still dominated by traditional system, which are mostly through brokers and collectors before getting to distributors or consumers.

This system creates longer distribution chain from distributors to customers. It also incurs additional costs because there are more transaction points that affect the price both from farmers and to customers.

In this system, price from farmers was agreed between brokers and the farmers.  Most farmers don’t have information about the market or knowledge about what consumers need, therefore it is easy for brokers to ask for lower price which in the end can harm the farmers themselves.

Without the ability to ask for better price, production processes for famers in the future are at risk. Low margin can potentially harm the farmers’ ability to deliver production with good quality. Moreover low price give less incentive for farmers to stay in agriculture sectors and will encourage them to move to non-agriculture sectors—sell their lands or convert them to other uses. Consequently, in Indonesia agriculture area in Indonesia keep decreasing in size and number of farmers falls dramatically.

Drastic reduction of agricultural land will affect its role as world’s lungs since many lands have been converted to residential and industrial area.

If the farmers don’t have any control over their crops prices, they can’t get enough profit to invest and improve the quality of their product and to expanse their farms.

Basically, most farmers do not have access to information about:

- Standard market prices, Market needs, Quality and types of market, Distribution system, Customer contact.

On the other hand costumers do not have information about:

- Agricultural production centres, Products inventory, Products availability and where to get them, Contacts for farmers / agricultural production centres.

If everything is left to brokers and outlets and distributors then additional cost will create bigger gap between market price and farmers’ price.

Each transaction point will add profit margins and transportation costs to the selling price (between 10%-12%). Each additional point will contribute to difference between market prices and prices from farmers.

This system can start unhealthy competition because transparency and reliable information is not available for all parties. Marked-up price tend to happen whether by keeping the products or manipulating farmers to give up their crops for cheaper price. To avoid or lessen market speculation transparency of information about several things below highly needed.

  • Real market prices
  • Types of products from farmers and market’s needs
  • Quality products from farmers
  • Number of products distributed in the market
  • Location of distributed products and farmers’ production centres
  • Availability of transportation
  • Distance between customers and farmers’ production center
  • Period of delivery.
  • Payment system for transactions.

This system will help the farmers, customers, transportation services, distributors and outlets.

We need a website with clear and honest information that can be accessed by all parties. It is possible to obtain the required information and at the same time be able to do online integrated transactions specifically for product from the sector of agriculture, plantation, livestock, horticulture.

With this system farmers can directly sell products to distributors, outlets and customers. Customers can buy products from distributors, outlets or directly from farmers.

Some benefits that can be achieved are:

1. Cut the supply chain and and make distribution faster. If it is done then we can expect:

  • less time to deliver goods from farmers to customers
  • the quality of agricultural products can be maintained.
  • reduces the additional costs that arises at the collector's point
  • market prices are down / fixed.
  • Farmers can get higher price.
  • If price from the farmers rises, farmers can increase their income and as a result they can improve the quality of their products to meet the market’s demand. Good income will attract young people to become farmers, invite new investments and expand agriculture sector. This in the future will contribute to help with global climate because we reduce the damage of our environment and preserve our contribution as the world’s lungs.
  • Create a fair and transparent market price because all parties involve have open access to the information such inventory, types of product, quality, distribution and location.
  • Help to improve the lives of farmers.
  • Help Indonesian farmers to market their high quality products to a bigger market and even reach international costumers.
  • Work as educational media for farmers to learn the standard quality of agricultural products that is demanded by the market.
  • Assist farmers need to transition in to a modern transaction system based on Information technology. In today’s world it is clearly impossible and inefficient for farmers to work on their own because it will be very cost and time consumptive.


CONCEPT

Starting as ideas of several parties who want to make a social contribution to Indonesia which is focused on the interests of all Indonesian farmers to improve their standard of living and be free from the traditional trade system which currently is difficult for farmers to market their products.

With the social vision of assisting farmers, PT. INDONESIA OPEN FOOD NETWORK (PT. JAPATI) is founded. PT. JAPATI already has legal license to work in Indonesia.

How did you hear about the Food System Vision Prize?

  • Email

5 comments

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Spam
Photo of Thu Nguyen
Team

Hi Open Food Network Indonesia 

Welcome to the Food Vision Prize community!

For the last hours before the deadline, make sure you have reviewed your final submission through the Pocket Guide to support you through the final hours of wrapping up your submission. This will give you the most important bullet points to keep in mind to successfully submit your Vision.
Here is the link to the pocket guide: https://drive.google.com/file/d/1o8WGMus6-V8GywWdlNwmCpk7I1fMVzcQ/view

Look forward to seeing your submission finalised by 31st January, 5:00 pm EST :)

Spam
Photo of Open Food Network Indonesia
Team

Hi, Great thanks

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