Indonesian agritech for farmers Elevarm’s CTO and co-founder ⁠Febi Agil Ifdillah⁠ and CPO Bayu Adi Persada⁠⁠ share how ⁠Elevarm⁠ approach to digitalizing farming in Indonesia impacts the kind of engineers and operators they hire, Elevarm’s path to profitability and place in future agritech industry, and their own leadership styles.

⁠In last week’s episode⁠, Febi and Bayu shared their stories getting into agritech, Elevarm’s ecosystem approach to an agritech business, and key learnings from ⁠their recently published sustainability report⁠.

Highlights and Timestamps

(02:24) Misconceptions about Indonesian agritech;

“So I would say the biggest misconception is that agritech equals farmers’ apps. The fact is that the agriculture industry is very complex. I would say it’s the most complex industry I’ve ever been in. This is coming from a person who has been quite adventurous in their career, exploring many industries. The agriculture sector, especially on the tech part, is still far from being saturated, even in Indonesia. The sector is still developing, and there’s so much to achieve. That means that this complex industry requires not just a focus on being digital, but a combination approach between digital and in-person approach.” – Bayu Adi Persada

(07:17) Views on the evolution of Indonesia’s agritech competitive landscape and Elevarm’s place in the future of farming and food;

“20 or 30 years from now, we’ve always believed that agriculture should be more transparent, where there’s no information asymmetry…as a farming company, we want to be seen as a company that promotes good agricultural practices, improving farmers’ livelihood and welfare, while also contributing positively to the ecosystem and the environment…we are accelerating the transition of the world into a more sustainable farming and agriculture industry. So I think that’s the thing that we want to be known for in the industry.” – Febi Agil Ifdillah

(14:27) How Febi’s and Bayu’s leadership has grown since starting / joining Elevarm;

“I always say to the team that the tech team is not just app builders or problem solvers. We love to deal with problems. Any problem you have, anything from operations, from agronomics, you can talk to us. We may not be the experts in the science of agriculture, but we can still be a proxy. We can be great resources, and facilitate discussions in order to make scalable solutions.” – Bayu Adi Persada

(19:27) #MinuteMasterclass: Commercializing Technology-Based Innovation for Indonesia’s Farmers;

“But the actual fact is that the farmers, all the traders, all the players in the ecosystem are already growing without your intervention before. So we do not put our ego in front of these ecosystems. So we still progress with humility, with curiosity, and with all this combination between humility and curiosity, I would say that will take us far in this space.” – Bayu Adi Persada

“Technology plays a critical role in introducing innovation but it is by no means a silver bullet. The introduction of technology solutions must be paired with capacity-building activities, including training, advisory services, financial support, and others to ensure that farmers can use the technology effectively and sustainably.” – Febi Agil Ifdillah

(22:34) #RapidFireRound;

About our guests

⁠⁠Febi Agil Ifdillah⁠⁠ is co-founder and CTO of Elevarm. Growing up in a remote village in Bogor, Indonesia, Febi is a first-generation college graduate. He studied under full scholarship from the Indonesian Government to pursue a degree of Bachelor of Science in Computer Science/Informatics from (ITB) Bandung Institute of Technology’s School of Electrical Engineering and Informatics. He was a Machine Learning engineer before jumping into the agritech space.

⁠⁠Bayu Adi Persada⁠⁠ is CPO of Elevarm. He has had more than seven years as a product manager, head of product, and CPO for several companies in Indonesia, including Bukalapak and Grab. He received his Bachelors’ from the Bandung Institute of Technology in Informatics Engineering and his Masters in ICTs for Development from The University of Manchester.

The content of this podcast is for informational purposes only, should not be taken as legal, tax, or business advice or be used to evaluate any investment or security, and is not directed at any investors or potential investors in any ⁠⁠⁠⁠⁠⁠Insignia Ventures⁠⁠⁠⁠⁠⁠ fund.

Transcript

*transcripts are edited for concision and clarity

Misconceptions about Indonesian agritech

Paulo J: I wanted to move because we have a lot of listeners who are not from Indonesia. Going through the impact report was a learning experience, and I highly recommend that people who are not from the country or have no experience in agriculture check it out. I think it’s a good way to learn about the space. 

For each of you, maybe you can mention the biggest misconception that you think industry outsiders have when it comes to understanding the space and what it takes to drive innovation in this space.

Febi A: I think one of the biggest misconceptions that people who are interested in the agriculture industry have is that introducing innovation initiatives in agriculture upstream can be done quickly and in a uniform manner. 

In reality, introducing innovation and advancements in terms of technology in the agriculture industry is a complex process that requires a deep understanding of the local context, the needs of stakeholders, and the culture and social factors that shift the industry in general. 

The niche of the agriculture industry is highly fragmented, with millions of farmers spread over various regions and geographies. As a result, introducing innovation requires a more tailored approach that recognizes the diversity of the industry and the needs of the stakeholders. 

Various stakeholders are also very unique, making it challenging but also highly rewarding. I think that’s the basic idea behind why we put up the impact report, because we want to look back at what we’ve done in the past 15 months. 

The results are encouraging, and I think we’re on the right track. With more time, we can create more strides in this sector in general. 

Paulo J: If you’re working in this space, you need to be committed to what you’re doing and be in for the long haul. Bayu, what’s the biggest misconception that you’ve been seeing, especially since you came from other sectors?

Bayu P: I think the funny part is that there’s a notion that when you’re building in agritech, you have to build the farmers app, and that’s it. So I would say the biggest misconception is that agritech equals farmers’ apps. 

The fact is that the agriculture industry is very complex. I would say it’s the most complex industry I’ve ever been in. This is coming from a person who has been quite adventurous in their career, exploring many industries. 

The agriculture sector, especially on the tech part, is still far from being saturated, even in Indonesia. The sector is still developing, and there’s so much to achieve. That means that this complex industry requires not just a focus on being digital, but a combination approach between digital and in-person approach. 

This in-person approach is equally important to the digital part. What is the in-person approach? Because we’re talking about science, we’re talking about dealing with farmers with different demographics, needs, and touches. We’re talking about different markets, different traders. We cannot deem that as a mere profile on our app. 

So we have to know in person, we have to understand the context so we can empower them effectively with digitalization. So I would say fully digitizing the agriculture industry is impossible. That’s why we need to balance the approach between offline and online.

“So I would say the biggest misconception is that agritech equals farmers’ apps. The fact is that the agriculture industry is very complex. I would say it’s the most complex industry I’ve ever been in. This is coming from a person who has been quite adventurous in their career, exploring many industries. The agriculture sector, especially on the tech part, is still far from being saturated, even in Indonesia. The sector is still developing, and there’s so much to achieve. That means that this complex industry requires not just a focus on being digital, but a combination approach between digital and in-person approach.” – Bayu Adi Persada

Views on the evolution of Indonesia’s agritech competitive landscape and Elevarm’s place in the future of farming and food

Paulo J: I think we already have the title for the episode: “Farmer Digitalization does not mean building a farmer app.” Eventually, you want to get to that point, but obviously, it’s not the first step per se. That’s really a through line or something that you’re emphasizing in this conversation.

And speaking of the long term, Bayu, you mentioned that the market is still very early, so far from being saturated. But I think if you guys are doing your work well, then eventually there will be more players in this space. And that’s actually a good thing. So what, from your perspective, will make Elevarm continue to stand out as the market progresses and matures in the long term?

And how do you see Elearm, say, maybe even 20 or 30 years from now, if you guys are still working in the space? Like how would you see Elevarm being referred to or remembered or looked at?

Bayu P: I think the strength of what we do is not just that we’re very committed and very focused on what we do, and not just agnostic and opportunistic in the market. Because being opportunistic means that we don’t focus on certain goals. 

We’re very committed and very focused on what we do. We cover a very upstream-focused operation, which means end-to-end from the beginning to the end. We’re working closely with the farmers. We’re very convinced with our models because right now it’s, I wouldn’t say fully proven, but I think we’re getting to that state in a shorter time, right?

So to really fully prove our models, we need to work closely with the farmers, not just look at the data remotely in the headquarters. Even the tech team right now is frequently moving around the operational area so that they can empathize with what they built. 

So that’s not just hearing from the reports from the ops team. “Oh, okay. They need that. Okay. We code that and then ship it.” No, they need to go down, talk with the farmers, engage with them, face their lines, get their hands dirty with what they do. So that they can build very fitting solutions for them.

So I think that’s what makes us quite different from at least what we have seen in the market right now. Not just that, but we’re also very cost-conscious. We’re very meticulous in spending every rupiah. We make sure the ROI is good, impactful, sustainable, and scalable. 

There are a lot of factors. So it doesn’t mean that we’re a quite rigid company. We’re actually very dynamic, very flexible. The intelligence, the experience combining our tech, business, science, and operations makes our business quite structured. I think we’re on track for profitability.

Paulo J: And focus and profitability are very strongly related. If you’re focused on what really is bringing in the money for the business, then more likely than not, you’re on the right track.

And for Febi, I wanted you to tackle the second part of my question earlier, which is, 20 or 30 years from now, what will Elevarm be known for? And by that time, hopefully, there will be a booming agritech industry across the value chain.

Febi A: Interesting question, Paulo. Actually, 20 or 30 years from now, we’ve always believed that agriculture should be more transparent, where there’s no information asymmetry.

Farmers basically do most of the jobs, starting from planning, budgeting, and then they also have to do all of the farming jobs, including harvesting. But now they receive less than the other stakeholders, let’s say the traders. 

Honestly, we want an industry that’s more fair, where people who’ve done most of the jobs could also receive more reward. In terms of that, I want to see agriculture become much more sustainable. 

And of course, financially for the farmers, but also for the environment, because now agriculture is one of the biggest contributors to greenhouse gas emissions, right? And this is a serious issue.

Because if there are no changes in the way we do farming, then we’ll keep producing even more greenhouse gases. And then the earth that we live in will not be a place [that is livable]. So agriculture connects to lots of aspects of our life. It’s where our food comes from, and it’s also ironically where most of the greenhouse gases come from, right? So we need to really take care of that. 

So as a farming company, we want to be seen as a company that promotes good agricultural practices, improving farmers’ livelihood and welfare, while also contributing positively to the ecosystem and the environment.

So one line of projects that we want to keep doing is answering the question on how to produce for everyone without compromising our future generations and also our generation. So meaning that making farmers much more sustainable in terms of the environment, financials, etc., and as Bayu mentioned, make farming great again so that everyone doesn’t have to worry about who would be the next generation of farmers. 

We want to promote that farming can be a really good source of income. It’s also a job that is really taking care of the land in its properties and also the balance of the ecosystem. So it’s beyond money. So I think that’s something that we want to achieve. 

And if I could borrow from the website of Tesla motors, which says we are accelerating the transition as Tesla says for the world towards more sustainable energy. But in our case, we are accelerating the transition of the world into a more sustainable farming and agriculture industry. So I think that’s the thing that we want to be known for in the industry.

“20 or 30 years from now, we’ve always believed that agriculture should be more transparent, where there’s no information asymmetry…as a farming company, we want to be seen as a company that promotes good agricultural practices, improving farmers’ livelihood and welfare, while also contributing positively to the ecosystem and the environment…we are accelerating the transition of the world into a more sustainable farming and agriculture industry. So I think that’s the thing that we want to be known for in the industry.” – Febi Agil Ifdillah

How Febi’s and Bayu’s leadership has grown since starting / joining Elevarm 

Paulo J: Really goes beyond farming itself, even just the future of food. And the way that Indonesians will be eating in the future, I think there’s definitely a domino effect. And I guess 20 years from now, let’s get back and see how things are.

But in the meantime, before we head into our next corner for this call, I wanted to shift gears a little bit and talk about yourselves as leaders, since you’re both not just engineers and product managers, but actually leading teams within Elevarm.

So I wanted you guys to share with our listeners how you’ve had to mature yourselves as leaders in your respective roles since joining or starting Elevarm.

Bayu P: I think as a tech leader in an agriculture company, you need to make sure that people do not see you as the only tech guide. Tech is the foundation and the catalyst of all operations in our business, so you need to get your hands on everything, including understanding the farming operation, how dealers or buyers take supply from the farmers and then source into the market. 

For example, you need to understand the end-to-end supply chains. You don’t see things from your laptop, you need to go to the fields, talk to the farmers, empathize with them personally, so you really understand what the problems and challenges are and how you can help address them.

I always say to the team that the tech team is not just app builders or problem solvers. We love to deal with problems. Any problem you have, anything from operations, from agronomics, you can talk to us. We may not be the experts in the science of agriculture, but we can still be a proxy. We can be great resources, and facilitate discussions in order to make scalable solutions. 

I would say being a tech leader in agriculture means you have to be the jack of all trades, but king of some. So we need to be the jack of everything that’s running in the company, not just the operations. The largest tech, logistics, science, agronomic part, all things we can advise better, and we can engage better internally and also within the ecosystem.

Paulo J: I really like the one-liners that you’re dropping here. Not just to be the king of whatever expertise you’re in, but also have an understanding of everything else that’s happening operationally across the business. I think it’s an important lesson, not just for agritech, but any business for tech leaders in any business. Febi, for yourself, anything to add? What has been the lesson for you in terms of how you’ve evolved as a leader so far?

Febi A: For me, the key highlight of transitioning to more specialized leaders in terms of tech, actually my title was the CTO of the company, but back in the day, I always found myself also visiting farmers and also doing a lot of things, including finance, etc. But now that we have dedicated people doing particular jobs, it has been a transitioning period for me personally to evolve and mature as a leader since starting the company. 

So now I have to develop necessary leadership and management skills to effectively guide the team’s technical execution in terms of software engineering while also maintaining the strategic evolution for the business. 

My evolution as a leader started from day one, and it has been about delegation. As I mentioned, now we have specific people doing these kinds of jobs. But now my job is more into the art of scaling the organization. How can we make sure that people within our organization are communicating, that the line of communication is clear, that they know what they’re doing?

And now I am transitioning into — at the time I was the player. Now, maybe I am the captain or in a couple of months, I’ll become the coach or maybe the owner of the football club. That’s the kind of thing that I’m juggling with as my role evolves.

“I always say to the team that the tech team is not just app builders or problem solvers. We love to deal with problems. Any problem you have, anything from operations, from agronomics, you can talk to us. We may not be the experts in the science of agriculture, but we can still be a proxy. We can be great resources, and facilitate discussions in order to make scalable solutions.” – Bayu Adi Persada

#MinuteMasterclass: Commercializing Technology-Based Innovation for Indonesia’s Farmers

Paulo J: That leads me to our next corner, which is our minute masterclass. So yeah, I’m really interested to hear from Febi and Bayu on this. I think we’ve touched on several points about this already, but if you were to summarize and if you were to give a masterclass on commercializing technology-based innovation solutions for farmers in Indonesia to other entrepreneurs, operators globally, what would be the one key takeaway you would have for that class?

Bayu P: If I have to pick one line — I already mentioned this. You need to keep your hands dirty and keep your feet on the ground. So even though you’re thinking, “Hey, I’m a tech guy, I know more than you do, right?”

But the actual fact is that the farmers, all the traders, all the players in the ecosystem are already growing without your intervention before. So we do not put our ego in front of these ecosystems. So we still progress with humility, with curiosity, and with all this combination between humility and curiosity, I would say that will take us far in this space.

As I mentioned, agriculture is a very complex, mostly untapped opportunity. So if we progress with the feeling that we know more than everybody else, then we will go nowhere.

Febi A: I think it’s been touched several times during our conversation, and it’s related to the misconception in the industry. If I were to give one key takeaway after several years in the industry, it is that innovation in the agriculture industry, especially technology by itself, is not the only solution that affects it.

There are two parts, right? Agriculture and technology. Technology plays a critical role in introducing innovation but it is by no means a silver bullet. The introduction of technology solutions must be paired with capacity-building activities, including training, advisory services, financial support, and others to ensure that farmers can use the technology effectively and sustainably.

So overall, the key to introducing innovation, commercializing the technology, especially in agriculture in Indonesia, requires a deep understanding of the local context in one’s approach, and commitment to capacity building. So I think by recognizing these factors, we can effectively invest in and support the growth of Indonesian agriculture in a more sustainable manner.

“But the actual fact is that the farmers, all the traders, all the players in the ecosystem are already growing without your intervention before. So we do not put our ego in front of these ecosystems. So we still progress with humility, with curiosity, and with all this combination between humility and curiosity, I would say that will take us far in this space.” – Bayu Adi Persada

“Technology plays a critical role in introducing innovation but it is by no means a silver bullet. The introduction of technology solutions must be paired with capacity-building activities, including training, advisory services, financial support, and others to ensure that farmers can use the technology effectively and sustainably.” – Febi Agil Ifdillah

#RapidFireRound

What is the superpower of each other that you would want to have?

Febi A: Capability of Structuring Things

Bayu P: Humility

What technology are you most excited about today, apart from what you’re building at Elevarm?

Febi A: LLMs

Bayu P: VisionPro technology 

If you were to be invited to produce or develop your own Netflix or OTT series, what would be the title of your show and what would it be about?

Bayu P: Documentary on youth players in Juventus

Febi A: Something on serendipity and randomness in life 

Looking back now, what is a skill — it could be a soft skill or hard skill — that you believe you should have learned back in your time as a student?

Bayu P: I would have liked to spend more time together with communities or groups working on something useful and impactful.

Febi A: Connecting in a deep way and creating something together much more meaningful. And learning biology.

If there’s something that you would automate in your job just by wishing for it, what aspect of your role would that be? 

Bayu P: That would be, translating my mind into more structured documents.

Febi A: Translating thoughts into documents

If you could pick anyone else alive or dead to be your 24/7 executive coach or leadership coach, who would it be?

Febi A: Satya Nadella

Bayu P: Steve Jobs, Adam Grant

If there’s no issue about budget, where would you want your team to have a company offsite?

Febi A: Banyuwangi, Indonesia

Bayu P: Japan 

Anything that you’ve read recently, that you’d like to recommend to our listeners or any go-to book that you’d like to recommend to our listeners?

Febi A: Fooled by Randomness by Nassim Taleb and the Daily Stoic by Ryan Holiday. 

Bayu P: Think Again by Adam Grant