MYCL – ASEIC

Investing in Impact

P4G has awarded the partnership with about US $340,000 in grant funding. 

Indonesia produces over 100 million tons of agricultural waste annually, much of which is burned in open fields, contributing significantly to carbon emissions. The failure to repurpose these valuable byproducts results in economic losses equivalent to 4-5% of Indonesia’s annual GDP. 

MYCL, an Indonesian startup, has developed proprietary technology to convert agri waste into high-quality products, including vegan mycelium leather and soil enhancers that improve farm yields. 

Mycelium, a leather-like material with a negative carbon footprint, can be used in car upholstery, footwear, jackets, and bags. With a growing customer base of over 600 clients, MYCL is expanding partnerships with major brands in the fashion and automotive industries. The startup is well-positioned to tap into the 13,000% supply gap in the global mycelium leather market. 

This startup provides multiple benefits, including boosting farmer incomes by enabling them to sell agricultural waste, reducing carbon emissions by discouraging waste incineration, and promoting a more sustainable leather industry that consumes less water and minimizes environmental impact. 

MYCL is focusing its efforts on Aceh Tamiang, Indonesia, home to endangered species such as orangutans, tigers and rhinos, where it works with smallholder farmers to transform unused palm oil plantation waste into sustainable leather, creating new income streams, job opportunities and significantly lowering emissions. 

During the partnership period, MYCL will establish a raw material hub to support the production of mycelium leather, soil enhancers, and pellets. Additionally, the company will process 20% of existing waste into value-added products, maximizing resource efficiency. To ensure long-term sustainability, MYCL will also develop training programs aimed at enhancing farmer capacity in sustainable production, equipping them with the necessary skills to contribute to a circular economy. 

ASEM SMEs Eco-Innovation Center (ASEIC) will support MYCL in obtaining necessary certifications that establish the products as compliant with international quality and environmental standards. The partnership will also publish a sustainability report to demonstrate its Environmental, Social and Governance practices. 

MYCL aims to raise US $4 million in investment during the 18-month funding period. Through its activities, it will reduce carbon emissions by about 250,000 metric tons and prevent almost 20,000 kilograms of waste from going to landfills. 

The partnership comprises the following partners: MYCL (lead business partner); ASEIC (lead administrative partner).