JaPang Presents "Supply Chain" Innovation for Food Products, Focused on Outside Java

The large opportunity to disrupt the system of providing rice, chicken, and eggs as staple food for the community, is utilized by the community Food Net (JaPang) to innovate to present a breakthrough in technology-enabled distribution systems. In particular, JaPang serves many customers outside Java for their product and technology services. Targeting the B2B segment, this startup officially launched in April 2021.

To DailySocial.id, Founder & CEO of Jaring Pangan Indonesia Benny Tjong revealed that the reason they focus on rice, chicken and eggs is because they have very large volumes. For rice itself, it is recorded in market opportunity could reach about $22 billion per year.

"Besides on a volume basis, we see that this product has a long shelf life. Rice has been guaranteed as a commodity Lifetime product, while for chicken because we sell it in frozen form, it can have a long shelf life. Likewise for eggs, most of which have a shelf life of 30 days from laying eggs," said Benny.

Forge partnerships with local farmers

To provide these products, currently JaPang has established partnerships with local farmers. The hope is that they can provide direct access to their target market, which is still difficult to do. At least 350 rice farmers have joined, 100 chicken farmers, and 20 chicken egg farmers. JaPang also has 45 B2B clients in various cities.

"We also sell complimentary products such as cooking oil and sugar. All of these products we make our own brand through private-label. These products also complement the basic food products," said Benny.

Focusing on cities outside Java, currently JaPang claims to have covered most cities on the island of Kalimantan. Other islands that were also targeted include Sulawesi, Maluku, and Papua. In particular JaPang has several revenue streams, namely B2B for distributors and agents, as well as B2B2C specifically for retail and their flagship initiative, "Jawara" (JApang WARung RAkyat).

Develop Champion for B2B2C

In addition to bridging the needs of distributors and agents, JaPang also helps them distribute and sell all products. Besides already having partners in various areas and even already in several cities that are included in the category primary city, JaPang will open its own depot, all of which are managed by the JaPang team. This is claimed to have something to do with some of the company's future strategies to develop B2B2C segment namely Jawara.

"Jawara we present to SMEs by creating a social impacts for those who want to have a business but don't know how to start. For those who do not have capital, we will provide capital in the form of stock by selling rice, eggs and chicken," said Benny.

He added that for capital financing apart from being provided by JaPang itself, they also partnered with financial institutions to provide this option. The hope is that more partners from other financial institutions will join JaPang to help the Jawara.

This new initiative is still concentrated in the Greater Jakarta area. However, in the future, JaPang targets to expand throughout Indonesia. The hope is that in the first quarter of 1, it can reach around 2022 thousand champions.

To simplify the process, later JaPang will manage the depots that will be opened earlier. The depot in the future will also function as a dark store (the concept of a retail store that only serves online transactions) online) and will adopt a strategy omnichannel which can be picked up or delivered. Currently JaPang has 5 depots in Jabodetabek and 5 others outside Java.

"Currently the number of Jawara in Jabodetabek has reached more than 100 in number and it is estimated that it will reach 500 this month. In January 2022, it is planned that Jawara will expand to Surabaya, followed by other big cities," said Benny

Fundraising plan

Currently, JaPang has pocketed initial funding with a total value of $500 thousand or equivalent to 7,1 billion Rupiah. This amount is a combination of the founders' investment and fresh funds from the company a number of angel investors. To accelerate business growth and expand expansion plans, JaPang is currently in the process of finalizing the pre-series A fundraising. If it goes according to plan, the fresh funds can be pocketed by JaPang at the end of January 2022.

In addition to fundraising, JaPang is also still developing applications. For now B2B client applications have been launched, but because it is still difficult to adopt them directly, online, the application is still in use internally. In the future, JaPang will develop applications that can be used by all partners to buy products, as well as for Jawara and end consumers.

"Not only for Jawara, but also buyers will be able to find out where the nearest Jawara is. Everything is still in the development process for applications," said Benny.

In 2022, the focus of JaPang still wants to introduce Jawara more broadly. This includes increasing the number of Jawara, especially for those who are affected by the pandemic and want to earn additional income by joining as Jawara. Logistics development itself is also a part of The roadmap company. Currently they are still utilizing third party logistics.

"Our focus remains on B2B and Jawara clients, as well as how we can have food security and help SMEs have economic resilience," said Benny.