Digging Gold in Waste: 3 Food Waste Startups in Indonesia

by | Apr 20, 2022

Food Waste Startup

Digging Gold in Waste: 3 Food Waste Startups in Indonesia

 

The modern-day irony is that some countries still lack access to food, while other countries have abundant food waste. One of the countries with concerning numbers of generated food waste is Indonesia. A lot of food turns into waste due to the tendency of over-ordering and consumer food quality preference. Research shows that food waste in Indonesia reached 184 kg per person per year, or 48 million tonnes in a year. This number is predicted to rise in the future, Bappenas predicts food waste will reach 112 million tonnes per year in 2024.

Food waste is a driving factor of the climate crisis, food waste contributes 7% of Indonesia’s total greenhouse gas emission (1,73 gigaton Carbon Dioxide). Unfortunately, the generated food waste still has not been managed properly. In the previous article, we have explained the problem in Indonesia’s waste management supply chain in general. We can see the same problem in food waste management. Indonesia still lacks in the handling process, storage, and education on food waste. 

To respond to this threat, various food waste startups have been established in Indonesia. Their business models can be categorized into three segmentations, reselling food waste, optimizing the supply chain, and recycling food waste. Check out these 5 food waste startups in Indonesia.

 

Examples of Food Waste Startups in Indonesia

 

1. Surplus

Surplus is a food waste startup that was established in 2020. Surplus business model focuses on reselling food waste. Surplus Sells leftover food from restaurants, FMCG, and small business and gets a 10% revenue share from the sales. Although they sell leftovers, the food is still of high quality because it is just an overstock. Because it is an overstock, the price of the food is significantly lower (50% discount). Beyond buying leftovers, every app download is converted into a donation (50gr of rice) to those in need. 

By now, Surplus has partnered with more than 1000 merchants and has acquired more than 20 thousand users. Because of this, Surplus has saved 1 ton of food from going to waste.

2. Damogo

Established in 2018, Damogo is a food waste startup that focuses on optimizing the food supply chain for businesses to reduce waste. In the Damogo app, businesses can manage all their supplier channels in one app. With their slogan ‘Create Taste, Not Waste’, Damogo is helping to reduce food waste by maximizing the absorption of raw materials to businesses and preventing them from being wasted. With their app, not only do they help reduce waste, but they also help to reduce emissions from their order service and help local farmers. 

Currently, Damogo has acquired more than 8 thousand merchants, partnered with over 80 brands, and worked with more than 150 farm partners. By now, this startup is in its seed funding phase. 

3. Magalarva

Magalarva was founded in 2017. Magalarva is a food waste startup that focuses on the recycling sector. Magalarva is concerned with the unsustainability of animal feed. For example, the sourcing of fishmeal is exploiting the ocean or soybean production which causes the clearing of rainforests. To tackle this challenge, Magalarva produces protein for animal feed & fertilizer by bio-converting organic waste using Black Soldier Fly. Beyond selling animal feed and fertilizer, Magalarva also provides waste management services by collecting and processing waste with Black Soldier Fly larvae technology.

By now, Magalarva has recycled 2000 tonnes of organic waste and has produced over 200 tonnes of BSF protein in 2021. Currently, this startup is in its seed funding process and has acquired $500,000 in funding from an anonymous conglomerate. 

 

Are You Interested in Building a Food Waste Startup?

Gear up will help you navigate the never-ending challenges of building a startup. Gear Up is a startup brainstorming partner in Indonesia that provides one-on-one and catered support for the chosen startups. Gear Up can help you find the correct business model, gain funding for your startup from venture capital, and scale up your startup. Join Gear Up to begin your startup journey.

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