Jan 19, 2023
With Niaga, PemPem positions itself as a market-maker, enabling the digital and real-world transaction between palm fruit producers and buyers.
PemPem announces the launch of Niaga, a trading platform for small scale producers and buyers of unprocessed palm fruit. Currently operating in Indonesian palm fruit markets, PemPem plans to expand Niaga to other regions and commodities. Niaga was launched in Indonesia on November 20, 2022 and has traded over 2,000,000 kg in unprocessed palm fruit within its first 2 months of operations.
With Niaga, PemPem positions itself as a market-maker. In addition to enabling the digital transaction through Niaga, PemPem acts as a real-world intermediary between palm fruit producers and buyers, in this case palm oil processing mills.
Niaga creates matches between small scale palm fruit producers and buyers. The daily cycle of trade begins with mill operators posting their daily purchase prices for palm fruit in the app. Taking into account the geographic location of both producers and buyers, Niaga calculates the best price-plus-proximity combination, adding transport and loading fees, and then offers palm fruit producers the best possible price in the market that day.
When a palm fruit producer accepts a price offer in Niaga, a match is created between the buyer and a number of small scale producers, referred to as a “bundle.” Fruit loads from different harvest sites can be bundled into one trip, eliminating unnecessary trips and greatly increasing supply chain efficiency. These bundles are then posted as transport and loading jobs. Once transport and loading are confirmed, the transaction is enacted.
Through Niaga’s bundling approach, PemPem is able to offer high purchase prices to even some of the smallest farmers who would otherwise have little bargaining power to secure good prices.
“The rapid adoption of Niaga since its launch has exceeded our expectations,” declares Joann de Zegher, PemPem founder and CEO, “And we are thrilled to see, for the first time ever, 100% traceability from smallholder farmer to mill on each sale of palm fruit, bringing us closer to the goal of keeping existing tropical rainforests intact.”
PemPem provides financial instruments and supply chain software that increase the efficiency of micro-enterprises in commodity markets, enabling them to be successful while reducing pressure on natural resources. PemPem currently operates in palm fruit markets, facilitating transactions between small-scale producers and buyers.
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