Indonesia’s Eratani Raises $6.2M to Advance Farmer-Centric Agtech Amid National Food Security Push

Courtesy: Eratani

Indonesian agricultural startup Eratani has secured $6.2 million in Series A funding to scale its integrated digital farming platform and deepen its support for the country’s smallholder rice farmers. The funding round was led by Singapore-based investor Clay Capital, with participation from TNB Aura, SEI Ven Capital, AgFunder, Genting Ventures, IIX, and SBI Venture.

Founded in 2021, Eratani is emerging as a key player in modernizing Indonesia’s rice farming sector. The company’s end-to-end platform combines digital tools with community-driven engagement to support smallholders across Java and Sulawesi. With more than 34,000 farmers currently onboarded and over 13,000 hectares of rice fields managed, Eratani has already facilitated the production of more than 112,000 tons of rice and unhusked grain.

According to CEO and co-founder Andrew Soeherman, Eratani has achieved tangible results for farmers, increasing yields by 29% and boosting incomes by 25% in 2024 alone. But he emphasizes that these gains are only part of a broader mission. “We prove that economic and social impacts can go hand in hand with environmental sustainability,” he said. “Rather than prioritizing rapid expansion, we focus on building a strong foundation to scale strategically into key districts, ensuring long-term value for farmers and the agricultural ecosystem.”

The fresh capital will be used to introduce advanced farming technologies, including precision agriculture tools, land mechanization, and sustainable cultivation practices. These efforts are aimed at tackling some of Indonesia’s most pressing agricultural challenges: a declining number of farmers, shrinking farmland, and the intensifying impacts of climate change. The share of agricultural workers in Indonesia has dropped from around 70% in the 1970s to just 28% today, compounding the urgency of innovation in the sector.

But innovation alone is not enough, says Bambang Cahyo Susilo, Eratani’s co-founder and CFO. “Digital tools can’t simply be forced onto smallholder farmers,” he notes. “Many of them don’t own smartphones or have the technical literacy to use them.” Instead, Eratani integrates technology through a community-based approach. “If one farmer in a community understands the value of using Eratani’s platform, the rest tend to follow. The whole approach is very community driven, and driven by our farmers.”

This sensitivity to local realities is underpinned by the founders’ own roots in Indonesian villages and farming communities. That background has informed the creation of tailored services through Eratani’s platform: EraFarm provides farmers with access to capital, agronomic support, inputs, and crop insurance; EraKios partners with local input retailers to deliver reliable products at reasonable prices; and EraMarket helps farmers reach buyers and secure competitive prices for their crops.

Clay Capital’s Gerard Chia sees Eratani as filling a vital structural role in the fragmented rice farming ecosystem. “As a hub in the highly fragmented rice farming ecosystem, Eratani’s integrated and farmer-centric model sets it apart from typical agritech platforms,” he said. “Beyond improving farmer livelihoods and productivity, Eratani has the potential to drive systemic change by introducing sustainable farming practices and creating future opportunities for farmers as carbon markets continue to evolve.”

For investors like AgFunder, which also participated in the round, Eratani’s strength lies in measurable impact and scalability. “Their ability to deliver sustainable benefits to smallholder farmers while improving Indonesia’s food system is what makes Eratani such a compelling investment,” said AgFunder Asia director John Friedman.

Indonesia currently imports the majority of its food—including rice—at a time when the government is pushing to reduce this dependency and achieve food sovereignty by 2027. Eratani’s long-term strategy aligns closely with this national goal. By providing a pathway for smallholder farmers to adopt technology without sacrificing traditional knowledge or community cohesion, the startup is positioning itself as a key partner in the country’s agricultural transformation.

“As digitalization becomes more important in agriculture, Eratani uses data-driven insights to refine risk mitigation and growth strategies,” said Susilo. “This not only increases operational efficiency, but also strengthens a more resilient agricultural ecosystem as we expand into strategic areas across Indonesia.”

In a sector where scale often comes at the cost of sustainability or inclusivity, Eratani is betting on a different approach: steady, community-led growth grounded in the real needs of smallholder farmers—and backed by the tools to help them thrive.