Cycle: 2017 Indonesia
Type: Climate adaption
Sector: Land use
Stage: Pilot ready
Requested input: Landmapp is looking for grant and debt finance to launch in Indonesia. There is also a need for stronger relations with government agencies and landscape projects. Landmapp hopes to work with coalitions of the private sector, NGOs, and government agencies on aggregated projects, such as oil palm replanting projects.
By providing smallholder farmers in Indonesia with affordable land documentation, Landmapp connects them to financial services such as loans and insurances, for more prosperous lives. Using mobile technology, documentation is delivered at less than half the cost of market rates. Smallholders are also assisted in using their document to access financial services. To secure formal financing for their farms for the first time, a credit scoring mechanism has been developed. It allows farmers to access cheaper financing, while de-risking lending for the financial institution.
With access to finance, farmers can replant ageing tree crops (cocoa or oil palm) and multiply their output (and thus their cash income) by over 200%. They can thus secure a healthier future for their families. For the credit product, a rural bank is the customer. Farmer credit-profiles that allow them to evaluate the creditworthiness of a smallholder farmer, will be sold to these banks. This will be a subscription model. Landmapp plans to reach banks by building relationships with their lending departments and offering them an opportunity to cut CAC. The total launching cost for Indonesia are estimated at around 800,000 EUR. This will make it possible to execute 2 launching projects, in coffee and in oil palm.