Innovation

Innovation conducted by Vestifarm is trying to connect between people who have funds with farmers or ranchers who need capital. With relatively affordable capital costs, the financial benefits are no longer simply enjoyed by people with jumbo capital. For example One cattle will be funded by six investors. After the cattles are fattened and sold, profit from sales will be divided 50:50 between financiers and Vestifarm. 50% is divided into six slots belonging to the investor, for one slot investment is about Rp. 750.000, (idr). Generally all types of cultivation projects in Vestifarm are beneficial, which is distinguished by the risk of each commodity cultivation project, and the risk is proportional to the estimated return given. For example, for a cattle there is an insurance coverage of 85% if the cattle is dead, lost or stolen with an estimated return of 6% -13%. For the shrimp the risk is only through the shrinkage and has no effect on downstream sales because the shrimps are prepared for export commodities with 13% -14% returns. The shrimp pond returns reaching 101% within a period of a relatively long cultivation project of 5 years.

Vestifarm cooperates with commodity management partner who have done the assessment first and has cooperative relationship with farmers and professional farmers who have experienced minimum 4-8 years in the field that has been proven to have high success rate, currently Vestifarm has had around 300 partner managers throughout Indonesia. The purchase of superior livestock and agriculture breeding as well as feeding is managed directly by Vestifarm through the managing partner. Vestifarm's market segmentation is the Educated Urban Worker, young workers who have more income and need additional funding. The basis for the success of Vestifarm is the profit sharing concept within 3-6 months, offering higher yields than other financial products and offering no fixed returns and Vestifarm has gained high trust from its investors, as evidenced by its accumulation funds of Rp. 300.000.000, - within thirty seconds and Rp. 1.500.000.000 within two hours after initial offering.

Inspiration

Vestifarm was established based on the existing potential of livestock and agriculture sectors. Vestifarm sees the high demand for beef in the market and in Indonesia the import of beef is around 60% - 70%, whereas Indonesia still has land that can be developed for livestock. The increase of meat production in Indonesia is only 9% compared to the demand of meat which reached 13%. Many investors from outside Indonesia would like to enter Indonesia in the field of animal husbandry and agriculture. One example of the potential in the livestock sector is seen through a survey conducted by Vestifarm in Subang area. Some breeder has a farm with a capacity of 20 cows, but his farm has never had 20 cows due to the shortage of capital. They could only afford to raise 3 to 5 cattle and if seen from the condition of the cattle, the quality is high and the cattle looks very healthy and fat so it can be concluded that the breeder has a very good skill in managing the cow.

In addition to the potential, in 2016 not many online animal farming platforms are active in the field of animal husbandry. Vestifarm sees the number of young workers (Educated Urban Worker) who have more income and need additional funds and based on IDX data, most investors are aged over 24 years and over. On the one hand the barrier for entry into investment is quite high, for example for stock investment is rather complicated while it takes more knowledge for it, on the one hand there is an opportunity in agriculture and can collect agricultural projects with profit sharing system and the profit sharing is higher than the bank and property business.

Overall impact

With the Vestifarm, it is expected to create investment alternatives for investors and provide capital funding for the farmers so as to encourage the production of beef in Indonesia and maximize the unused land for breeding livestock.

Business benefit

Vestifarm currently employs about 10 people with competitive salary and share profit options. The cultivation project is open every 1 month and if there is no obstacle, the cultivation project is opened in the second week for each month, so that with the projects to be made by Vestifarm it is expected that more partners will be invited to join by Vestifarm and open the opportunity as big as possible. the magnitude for farmers to improve the welfare of their lives.

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Social and environmental benefit

Since Vestifarm was founded in 2016, Vestifarm has provided a competitive investment alternative compared to investment in property or gold. Investors can earn a larger share of revenue within 3 to 6 months.

In addition to providing benefits to investors, Vestifarm also provide benefits to Farmers, bringing extra funds to manage farm animals or farms becomes more efficient. Many Farmers find it difficult to get funds and finally choose to quit. Now they are able to improve the welfare of their lives. In addition, Vestifarm also helps the Farmers to help distribute their crops to Buyers at a higher price than the previous sale price.

Interview

Rifki Hidayat, Rifki Hidayat, SE