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Indonesia
New Energy Nexus announces funding for 4 early-stage clean energy startups in Indonesia

Jakarta, 29 March 2022 – New Energy Nexus (NEX), through its Indonesia 1 Fund and Smart Energy Grants, has provided funding to four early-stage clean energy startups [1]. The initiative aims to bridge the funding gap for clean energy start-ups in Indonesia.

Two new companies have been added to the Indonesia 1 Fund portfolio: SES, an energy efficiency company, and SWAP Energy, an e-mobility startup. The Fund has also recently co-invested with East Ventures (an EV growth fund), PT Saratoga Investama Sedaya Tbk. (Saratoga), and Schneider Electric in a follow-on investment in the solar PV startup, Xurya, in its US$ 21,5 million Series A roundthe largest Series A funding received for a clean energy startup in Indonesia.

“We’re seeing an incredible opportunity for clean energy and climate innovation startups in Indonesia to galvanize the sector. We are still heavily dependent on fossil fuels, but by empowering clean energy startups we will be able to stimulate the investment climate, accelerate the clean energy transition, and create green jobs,” said Diyanto Imam, Program Director at New Energy Nexus Indonesia.

“We aim to bridge early-stage fundings gaps for clean energy and climate innovation start-ups in Indonesia, which we see as a major gap in Indonesia. That’s why we have provided funding to 16 startups since early 2019 through our Smart Energy Grants and Indonesia 1 Fund. Our goal is to accelerate Indonesia’s clean energy transition, and support the Government’s commitment to addressing climate change.”

According to Indonesia’s Ministry of Energy and Mineral Resources data, Indonesia has up to 400,000 MegaWatt (MW) of renewable energy potential, with solar and hydropower targeted for priority development.  

“By the end of 2021, Xurya has installed 57 Rooftop Solar Power Plants. With the Series A, we aimed to accelerate the energy transition in Indonesia by investing more in the development of technology and human capital,” said Eka Himawan, Managing Director of Xurya Daya Indonesia.

CEO of SES, Steve Piro said: “SES is very excited to have gone through Nexus’ accelerator program and now have them as a strategic partner. SES plans to leverage Nexus’ network of potential clients and investors as well as lean on them for strategic advisory.” The Indonesia 1 Fund has co-invested with SEACEF for this investment.

“NEX has always been our biggest supporter in terms of coaching and finances. With NEX investment participation in our Series pre-A round funding, SWAP Energy will accelerate the adoption of electric vehicles even further, supporting the Indonesian government to reach a target of 13 million electric motorcycles on the roads by 2030,” said Irwan Tjahaja, Founder & CEO of SWAP. 

Led by Kejora-SBI Orbit, the Indonesia 1 Fund has co-invested with other investors such as Baramulti Group, Living Lab Ventures (an affiliate of Sinar Mas Group), strategic corporate investors, and high-net-worth investors in Swap Energy’s recent oversubscribed Series pre-A round.

In addition to the Indonesia 1 Fund, New Energy Nexus Indonesia is mobilizing grants through its Smart Energy Grant. This program aims to support startups on their prototyping stage and helps them to validate their business ideas. As of December 2021, New Energy Nexus Indonesia awarded grants for nine clean energy and climate innovation startups. Powerchain, an IoT company, is the latest recipient of Smart Energy Grant for its latest pilot project named “Konde”, an LED smart lighting product designed for street lighting (Lampu Penerangan Jalan Umum). 

“With the Smart Energy Grant that Powerchain received, we expect it to be the stepping stone for Powerchain to expand our market, an upcoming project that potentially can reach 14 thousand installations of smart lighting systems in Java Island and West Nusa Tenggara by Q2-2022,” said Yayan Santoso, the CEO of Powerchain.

NEX supports clean energy and climate entrepreneurs in Indonesia, enabling startups to develop innovative products/services, expand their market, and generate strong economic, social, and environmental impacts. This is aligned with the Indonesian government’s goal to reach 23% renewable energy source in 2025. In 2022, Indonesia will also host the G20 Summit and is expected to call for the acceleration of the global energy transition.

Note to editors:

[1] Indonesia 1 Fund is supported by the Ikea Foundation. 

New Energy Nexus (NEX) is an international organization that supports clean energy entrepreneurs with funds, accelerators, and networks. We started in California and operated programs in Indonesia, China, India, Southeast Asia, and East Africa. Since 2019, New Energy Nexus Indonesia has helped 60 startups through the incubation and acceleration process with Smart Energy Program.

For further information on New Energy Nexus Indonesia grants and fundings, please visit our website.

Media contacts:

Tristan Tremschnig
Global Communications Director, New Energy Nexus (based in San Francisco, USA)
tristan.tremschnig@newenergynexus.com 

Raisha Fatya
Communications Manager, New Energy Nexus Indonesia
Raisha.Fatya@newenergynexus.com
M: +628118980051

About New Energy Nexus

New Energy Nexus (NEX) is an international organization that strives towards a 100% clean energy economy for 100% of the population. It does this with a laser focus on diverse entrepreneurs, supporting them with accelerators, funds, skills, and networks they need to thrive. NEX has accelerated 1,400 startups, empowered over 9,500 entrepreneurs, and mobilized over US$3.7 billion in investment. Since its founding in California in 2004, NEX now operates programs or advisory services in Australia, China, India, Indonesia, Nigeria, Pakistan, the Philippines, Thailand, the UAE, Uganda, the USA (California and New York), and Vietnam.

Follow NEX on LinkedIn, X, Facebook, and YouTube

Story
Indonesia
Women
Empowering women with renewable energy in Indonesia

rambu yati

Rambu Yati Radandima, a finance manager in Indonesian start-up Sumba Sustainable Solutions (3S), is giving back to her community. A start-up with a focus on inclusive and sustainable innovations in Sumba Island, 3S provides local schools, villages and community health centres with access to solar power.

Rambu Yati’s work has personal meaning. She knows what it’s like to live without reliable access to electricity. Sumba, an island in the East Nusa Tenggara Province of Indonesia, has a unique geographical character that makes tapping into the national electricity grid difficult. In the past, over 500,000 families living there—roughly 38% of the island’s population—struggled with little or no electricity.

Rambu Yati says: “Life in the village was very different. Back in the 90s, my family relied on kerosene lamps to light up our home when we cooked or when we wove palm mats. We had to manually pound rice and corns because we had no access to milling machines.”

While the Indonesian government committed to electrifying the entire country by 2020 (RUEN 2017)[1], only 62% of the East Nusa Tenggara population has access to electricity, the lowest energy access level in Indonesia (IESR, 2019).

Stepping stones

In 2000, Rambu Yati enrolled in the Warmadewa University in Bali. She successfully graduated with an undergraduate degree in Agricultural Science. Today, as finance manager at 3S, Rambu Yati is involved in solving energy access issues in her community by providing solar-powered technologies to local institutions. An ethical, profitable business, 3S’s work focuses on bridging the energy gap in rural communities.

The distribution of solar-powered lighting solutions has significantly improved Rambu Yati’s community. Today, Sumba’s children can finally do their homework and study at night. Power has also improved people’s livelihoods, allowing more hours for local artisans to weave tenun ikat, a traditional handwoven fabric. Unique to Sumba, tenun ikat is part of Indonesia’s artistic heritage.

Mission for productivity

3S also provides solar systems for people’s homes and solar-powered productivity centres, which are energy hubs for the community. These solutions are powering livelihoods in Sumba by enabling villagers to mill crops and process bamboo. They are not only making people’s livelihoods more sustainable but are also improving the quality of life for many women in Sumba.

Before, women had to spend several hours a day pounding corn and were left with just half a day free. The solar-powered productivity centres enable villagers to make better use of their time. The men take corn to the mill while the women shell candlenut, which they can later sell at a higher price.

Renewable energy is also saving money and improving people’s health. According to the Indonesian Central Agency of Statistics, villagers typically spend 10% of their monthly living costs on expensive fossil-fuel-based lighting, like kerosene lamps, which emit harmful fumes that can damage the lungs.

With solar-power solutions, Sumba’s villagers now have a greatly reduced electricity bill. Rambu Ina is one of 3S’s local customers. She says: “In the past, we only used the kerosene candle for one hour because it was too expensive. In the evenings, now I have light for four or more hours. At night, often we sit around and talk to our neighbours while shelling our candlenuts or working on woven palm mats to be sold at the market.”

Work in progress

Rambu Yati aspires to keep helping Sumba’s local communities to access renewable energy, so they can increase their incomes and afford a better education for their children. Ensuring 3S has operational and financial sustainability is crucial so they can maintain the solar home systems and solar-powered productivity centres that the villagers depend on.

Like many other start-up employees, Rambu Yati struggled with data collection and creating a balance sheet that was fundamental to 3S’s growth. That’s where New Energy Nexus stepped in.

New Energy Nexus connected Rambu Yati and her colleagues to experts in HR, marketing communications and finance, through a programme called Mentor-in-Residence. Thanks to this programme, Rambu Yati now has the essential resources and skills to move forward. She can confidently draft financial forecasts to determine what the start-up needs to scale up, and ultimately, empower more villages with renewable energy.

3S is no longer a start-up struggling to survive but a sustainable business instilled with a healthy company culture that upholds transparency and communications between team members and stakeholders. And the skills Rambu Yati has learned in areas like communications are helping her nurture a new generation of skilled workers on the island.

She says: “Before we started with the New Energy Nexus accelerator, we were just dealing with problems as they came up, feeling like there must a better way. With New Energy Nexus’ guidance, we now have a clear plan for all parts of the business and our whole team is committed to achieving the goals that we have set together.

“I feel that we now have a shared responsibility to make our company vision and mission—to empower rural communities through access to energy and appliances for productive use—a success.”

[1] Indonesia’s National Energy Plan (Rencana Umum Energi Nasional (RUEN)).

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