Entering its Fourth Year, TaniHub Starts Focusing on Expansion Outside Java

Startups agritech TaniHub has started its service expansion outside Java, entering its fourth anniversary. The plan will be supported by strengthening infrastructure in the form of distribution centers and product processing and packaging centers.

TaniHub CEO Ivan Arie Setiawan explained that the company currently has five distribution centers located around Java and Bali, specifically in Bogor, Bandung, Yogyakarta, Surabaya and Bali.

“In the next two years, we will not only focus on Java and Bali. But also in Sumatra, Kalimantan and Sulawesi," Ivan said in a virtual press conference, Monday (24/8).

The expansion of this distribution center aims to evenly distribute agricultural products throughout Indonesia. As a result, commodity supply chains will be more efficient and prices can be controlled. "Farmers have the certainty to continue cultivating in significant quantities so that their welfare increases."

In support of that, TaniHub now has a product processing and packaging center or processing packing center (PPC) in Malang which will be released in the near future. This facility serves to save agricultural product distribution time up to two days.

“This facility only exists in Malang, ideally in every province there should be PPC. Later there will be in West Java, such as Majalengka, then in Medan, "added Director of Supply Chain TaniHub Group Sariyo.

These two infrastructures will enable TaniHub to meet the standard of importing agricultural products evenly, not only in Java.

Ivan said, during the four years of its existence, the company has focused on strengthening the upstream side. Like setting up TaniFund in 2017 and TaniSupply in the next two years. This is done so that the company is not limited to being a seller of farmers' products, but also helps foster farmers upstream in the production process to harvest.

“We also have to collaborate [with many partners] so that the target of fostering 1 million farmers can be realized before 2023.”

Impact of the pandemic

Although the company is one of the "lucky" industries in the midst of a pandemic, there are actually plans that must be delayed, namely expansion outside Indonesia. "We really want to expand globally, but because of the pandemic this plan is a bit delayed but remains our big plan in the next year depending on the situation in the country," explained Pamitra Wineka, Co-Founder & President of TaniHub Group.

While preparing the grand plan, strengthening distribution centers and PCC are factors that support TaniHub. The reason is, the obstacle currently being faced by companies for export is the need for consistency in harvests from farmers which are currently still not optimal, both in terms of timing and quantity. grade A.

"But we have started to increase the intention from TaniFund to help provide the best seeds and fertilizers, as well as knowledge from our agronomists so that their yields can increase in quality."

Transactions on TaniHub during the pandemic are claimed to have increased. Herbal plant products, for example, are the most sought after by consumers and the increase reaches 20%. The number of users also increased to 20 thousand people.

Overall, transactions are growing threefold every year. Four years of operation, now TaniHub has attracted more than 30 thousand small farmers who have joined the ecosystem.