The BIKI (Berkah Inovasi Kreatif Indonesia) – FoodCycle Indonesia partnership aims to provide an end-to-end solution to food loss and waste that will improve farmer incomes and food security in Indonesia. It will scale a natural edible coating designed to extend the shelf life of fruits and vegetables and set up donation posts to distribute any food surplus.
P4G has awarded the partnership about US $350,000 in grant funding.
BIKI has developed Chitasil, an edible natural coating made from shrimp shells that doubles the shelf life of fruits and vegetables. More than 60% of fruits and vegetables are lost or wasted in Indonesia each year costing the country more than US $320 million. A staggering statistic in a country where 20 million suffer from food insecurity.
More than 30% of this loss occurs at the post-harvest and processing stages, which is where BIKI’s area of focus will be. By reducing losses at this level, BIKI can help farmers retain a larger portion of their income and also contribute to greater food security in the country.
BIKI is also currently developing an app to predict the shelf life of fruits and vegetables. The app can connect across the entire food value chain, track food loss and send shelf life reminders. The aim of the software is to help change consumer behavior and further reduce food loss and waste.
BIKI and FoodCycle Indonesia will establish 30 “BIKI Points,” which are food rescue posts in packing houses that belong to farmer groups. The partnership will train staff in good food handling standards, applying the edible coating, and using the app to track food loss and product shelf life. The partnership will also come together to establish Food Cycle Hubs that will function as food donation points in different fruit and vegetable markets across Indonesia.
Between April and June 2024, BIKI has established three BIKI Points at fruit and vegetable markets in Indonesia. Almost 300 kgs of green beans and cherry tomatoes were rescued and distributed among four organizations who bring them to people in need. BIKI currently rescues about 1 ton of food every week and is planning on increasing that amount to 3 tons per week to achieve economic scale. The startup has also started trialing the first phase of its app in these BIKI points where it’s working on digitizing activities and financial systems in the packing house. The second stage will focus on traceability of the produce at the point.
During this period, BIKI also developed “Sunwash” a fruit and vegetable wash to remove pesticide residue.
FoodCycle is working with BIKI on a knowledge product to determine how much food loss and waste occurs in the agricultural sector across the value chain in Indonesia. It will focus on certain areas of the country and identify causes for this loss and waste and suggestions to avoid it.
BIKI is now a member of GRASP 2030, a Voluntary Agreement bringing together businesses and supporting stakeholders in the Indonesian food system value chain to reduce food loss and waste. The startup was also able to participate in the Green Economy Expo organized by Bappenas to share its solutions with government stakeholders and investors.
During the P4G funding period, BIKI aims to raise around US $500,000 in investment. From an environmental and social impact perspective, the partnership aims to prevent 20% of loss between the post and distribution stages, which would amount to about 5,000 tons of fruits and vegetables. The financial value of this loss prevention will amount to US $1 million. The partnership will also reduce methane emissions by 250 metric tons and carbon emissions by 2,500 metric tons. The partnership is committed to gender equity and will involve 100 women in packing activities at BIKI Points. It also aims to increase the income of 500 farmers.
The partnership comprises of the following partners: BIKI (lead business partner); FoodCycle Indonesia – a member of the Global Foodbanking Network (lead administrative partner).