Now Go Build with Werner Vogels EP1 – Jakarta

– [Werner] Our planet and our civilizations are changing faster than ever before. Join me as I travel the globe.


– [Werner] Our planet
and our civilizations are changing faster than ever before. Join me as I travel the globe
to talk to start-up founders using technologies to make
our world more interesting, accessible and livable. These are the entrepreneurs that are creating the
future we will live in. This is Now Go Build. (loud drums music) (upbeat music) I love Indonesia. It is a country knit together
from thousands of islands, hundreds of ethnicities speaking more than seven hundred languages. It is a nation of contrasts, small islands, enormous cities, jungles, mountains and farms. Millions of farms. How often do we take for
granted the food we eat? I certainly do. I could just walk up to street vendor and order nasi goreng pad thai and not even think about
where it came from. All we have to do is enjoy it, and hope that it’s spicy enough. But in that bowl of rice lies the engine of the
world’s food supply. Tens of thousands of years ago, the agriculture revolution
created the opportunity for humans to build communities, then villages, then cities, then empires. Eventually, the simple act of learning to domesticate grains, led us to where we are now. The global economy and a
population of 7.4 billion, Combined, rice, corn and wheat, feeds 80% of the world’s population. Rice alone, feeds almost half of humanity. That is 3.7 billion who
depend on rice to survive. Not to mention a whole lot more people who may not need rice
for daily sustenance, but love it nonetheless, like me. Depending on which study you lean on, somewhere between 68 and 80%
of the world’s food production comes from small holder farms. Small family owned plots. The majority of which are
in developing nations. Nations where money
typically has a tough time making it to the farmers. It is a hand to mouth world. For many of them. The sad state of affairs considering the majority of people on this planet would starve without them. Enter Hara. Hara is an amazing tech
company here in Jakarta that has come up with a solution. With their tech, they connect
rural, small holder farms with banks and distributors of goods, like seeds, fertilizer and tools. It is simply the sharing
of hard to obtain data that make this possible. With this system, good information is the
basis for good credit and goodwill in our current economy, data is currency. The Hara process is simple. The explanation of how
they are accomplishing it may take a little time. – Hey guys, – Hey! – Look, good to see you. – Good to see you, alright. – How long have you guys been here? – [Werner] Hara is a global and open block team based data
exchange based here in Jakarta Founder Regi Wahyu and Imron Zhuri have come up with a
brilliant way to bridge the gap between the money people; the bankers, credit lenders and others, and small holder farmers. It’s two worlds that have
rarely met before now. – And this is our dungeon. – Dungeon? – Yeah, they love being in the dungeon. Like dark, and animations
and something like that. – Do you do dragons as well here? – Yeah (laughs). – It is a dungeon. – It is, it is. – [Werner] Hara thinks of its headquarters as the block chain hub of Indonesia. Their work spreads far
beyond this huge metropolis. – Team, this is Werner,
the CTO of Amazon.com Say hi to him. – [Werner] Hi guys. – [Team] Hi! (upbeat music) – So first tell me what
does the name mean? – The name of Hara? Hara means, from Sanskrit language, means the soil nutritions and elements. When I was young, like
in junior high school, I was living in the villages. And that’s the best 3 years of my life. Where all my friends are farmers. The way I saw them, they happy, but they
need be more independent because Indonesia, we are
living in the dark world. So even though they
are independent nation, more than 50%, most of Indonesian ID, birth certificate, death certificate are still on the paper basis. So that’s hindering everybody on the bottom of the pyramid to get the financial support to getting the credit to getting the loan, so that’s the reason why we developed Hara. – [Werner] So there must be a clear before and after for the farmers. – Oh yes, actually being
poor is expensive for them. They do have informal financial support and they have to pay up
to 60% interest a year just to get that. And then because they also desperately need also other support, other than just crop production, like for example, education, for health, sometimes they also mortgage their crops before they even
harvest at a lower price. So by having this access, it will provide them a much bigger leeway for their livelihood. By having them being visible in the system, they can have access to insurance, so they have a much better safety net. (upbeat music) – So, tell me then, what kind of data are we talking about. – So basically we collecting any ID that they have. So they’re 1.5 billion people who have no proper ID in this world. By making them visible, by giving them an identity, that they can actually use
to identify themselves, then we can provide access to a lot within the system. Once they are visible, what is also visible is not the farmers, but also the wives, the children, the whole family basically. – So, but you mention it’s
not the farmers themselves that put in the data. You have agents? – Yes, we have field agents that collect all the documents that relate to the land. So we do land tagging, with a simple GPS inside the app. – My name is Ansori I am field agent. – Okay – Farmer. – Pleasure meeting you. – So the role of the
field agent he is helping the farmers to collect the data. – Why don’t we have a look? – In Indonesia we are so diversified, if you ask the farmers
how big is your land, and their answers could be
different from area to area. Some of them will say, Oh, my land is about, 400 stones and the others farmers, Oh, my land is from that coconut tree to the side of the river. So by doing this we can have a proper measurement of their land. – So we are going to do a polygon. – Okay, well let’s do it. – Okay, let’s go there. – Do you also collect
data then about crops and crop yields and things like that? – Yes, so when they plan what
kind of crops they plant, what fertilizer they use, and when they harvest and how much they are actually selling. – So the ability to scale
up must be a big challenge because you have to recruit all these data collectors and
you have to train them. – So the data collectors
are not our employee, they are voluntarily
sitting on the villages. But we designed incentive mechanism to make sure that they
can incentivize family, together with the farmers. So with every revenue that we get we going to split off
into the field officers, so we can encourage them
to become data entrepreneur at the beginning. (funk pop music) – How many farmers do you support? So, while it is a great
story for the farmers, but you guys are building a business. – Yes. – So how are you guys going
to make money on this? – Every time the financial institution, insurance company, and fertilizer and fast moving consumer goods, every time they have access to the data they need to pay some money into it, because for a financial
institution to really getting the verified data and
this is so expensive for them. I’ll give you an example, one of the banks that we are already working with, they save 37% of the cost
of consumer acquisition by working together with us. – Yeah I heard great
stories about the loans that are given to farmers by the program, the repayment rate is
significantly higher, or almost 100%. – [Co-Founder] Yes, almost 100%. It is because the data is
first of all authenticated, we have much lower non-performing loans. – It is pretty spectacular. So you guys, technology is
partly based on block chain to get the privacy, the
security and the immutability. But for some people it is often quite complex technology so why don’t we go downstairs and just take a look at the tech you have. – Block chain is quite
actually easy to explain to a lot of Asian people,
especially in the East, because it is based on consensus. So I keep telling them, is imagine that you are
actually doing transactions from someone to another person in a room full of 50 people. And that these 50 people actually record the transaction together at the same time. Block chain is about that is about communities. – Yeah, I understand that
you also have another stakeholder in this
story, that is the person looking at the data quality. How does that interact with your system? – So every data that is put into Hara, can be qualified by other person within the ecosystem. Like for example, when we record the land the neighbors can also say, okay , oh yeah, I also know that the land
belongs to that person. We create a link, for
example, when they upload government documents, so the rating is one when they have one link. When they upload another document then the rating goes up. When they have a person for example, their field agent confirming, yes that person do exist
and I know that person then they have another link. So basically, a lot of people can also
help in the ecosystem being a data qualifier. – So this part of the
additional information that is being provided
about the original data. – Yes (upbeat music) – Can you give me a bit of a view of sort of what the
whole beast looks like. – Sure. We have 4 stakeholders. The first stakeholder we
call it Data Providers They are farmers, database companies and satellite companies who are willing to share their data into our applications, right? Then, number two, which
is the data buyers. This is the banks, insurance
companies, retailers who would need the access
the data from the ecosystem. The third stakeholder, we
call it data qualifier, like Imron mentioned, are
a couple of people who are willing to verify and
validate the quality of the data. The fourth ecosystem
player, what we built, we call it value added services. They are the one who can access the data and build any value added services which they can sell
back to the data buyers. – So this basically
means that you’ve turned Hara into a platform where all those who can
develop applications on this well using that data. – Yes – So not just selling the data, there is more to it. So tell us a bit what
cloud has done for you. Did you start off in the cloud? – For Hara, we start from the cloud. – Okay. – Because we know this is going to be a massive project and we don’t want to have a big thing. And the cloud technology
allowing us to focus on the business and then worry less on the securities and scalability part of it. – It does give me, I’m a
salesperson in the company, and he’s a tech guy, right? So is make me more easier
to sell to the companies to partnering with us because it’s not only the brand but the technology is proven and mature enough for them to rely on the technology that we are building. (music) – So your farmers, are they
in particular villages? Is this a project that you’re
running, is it widespread? – So we started earlier
this year from one village just to fine tune and iterate what is the best working model on deployment side. I give you an example. If I show the technology
in the urban area, they will say this is ugly because the UI is not cool, right? And when we go to the farmland you will see you our town,
your town and my town, that they are smaller than them, so we need to make an
icon much more bigger to use than in an urban landscape, right? So that kind of adjustment
that we learned along the way. We started in one village now we have 117 villages and 400 field agents. And we already captured and
involved ten thousand farmers. – Is this uniquely Indonesian, or..? – So this is uniquely
for developing countries who has a big size of
small holder farmers. There are 570 million small
holder farmers around the world and they are in the equatorial countries like Indonesia, Viet Nam, Thailand. Next month actually, we are
going to do a pilot project in Uganda because Uganda
has similar small holder problems and characteristics and that’s why we have another
office in Columbia as well. So eight countries within
the equatorial belt become our target market moving forward. – How does this actually work? – Yeah, so it is quite
a complex thing actually because there are so
many components in it. Okay, first we have the block
chain part which actually records all the transactions
in immutable fashion. – Okay. – And also responsible
for handling all the token transactions within the ecosystem, right? – So what do you mean
by token transactions? – To incentivize the farmers
and to give them points we use the token mechanism
to record the transaction, because we have to distribute
the money automatically to all these millions of
farmers at the same time. And it can be quite complex. – So it’s actually a
multi-party transaction. – Yes a multi-party transaction. That should be automated by
using the block chain part of it. But at the moment we also
need to scale very fast, so we actually store
the data in the cloud. Using the cloud infrastructure. And this allows us flexibility because then we can use block chain for recording the transaction, but not storing the information. – [Werner] Okay – So it makes it easier. But we store it in an encryptive way. And the rest we store on block chain. So we make the database also immutable, by facilitating block chain indirectly. But also there is a big component
in the analytic services. This is also quite complex,
because we have to do a lot of image processing for the applications and we also have to do
a lot of fraud detection even for the qualifiers. So the analytic service
is quite important, and it also has to be
scalable to a certain degree. And then the other part
that very important is the security layers. In block chain, it is secure, but in other
parts we have to link both worlds in terms of security, because there are so many
moving components in here, that needs to be secured – So basically, you’re using block chain as a distributed ledger, and it’s not that you are running this in a decentralized fashion, across, let’s say in the field, but all your block chain parts
within the cloud as well. – [Co-Founder] Yes. (strings music) – So you guys run your block chain based on Ethereum; that’s one of the block
chain technologies out there. Did you make changes to the protocol, or is that purely a vanilla Ethereum? – At the moment we are
running on a private Ethereum using profile of authorities. But because it is
practically a side chain, so we have to build a lot
of the other supporting technology on top of it ourselves, like the block explorers
and things like that. And also because we need to speak to the outside worlds, we have to create our cross chain module that allowing us to work
from our private Ethereum to the mainland. – Okay, interesting, so
you guys need to develop a lot of additional technologies. Block chain still is with Ethereum is still pretty low-level
and coarse-grained, but to make it usable, you need to do a lot of work. – Yes. – I understand that many of these farmers do not have bank accounts. So how do you incentivize them if you cannot put money in their bank? – We are using the point system, so whenever they share the data, they are able to redeem some points and these points can be used for the redemption in the fertilizer and some pop and mom shop for staple good that they
need on a daily basis. They see the point system is really working. Especially for the
housewife of the farmers, because early days we give
our money to the farmers. But the money that they received were not coming back to home. So they use it for buying something for the farmers themselves. When we introduced the point system, the housewife can use it for something useful for the family. (upbeat music) – [Werner] As humans race forward, with new advancements in
finance and agriculture, there’s always the risk
that the little guy and woman get left behind. In a region where more
than half of the economy relies on such people, leaving them behind is a non-starter. In fact, reaching all of those farmers,
shopkeepers and tradespeople is where the opportunity lies. – Can I have some Nasi please? Thank you. – [Werner] It is exciting
to see more entrepreneurs founding technology companies
that look beyond just profit to impact that they can have on people and the world around them. Companies like Hara, combining a strong technical knowledge and a
passion for making a difference, great things could be afoot. When visionary thinkers understand the people, the problems and the technology, the potential for
solutions becomes endless. It is just the type of
thinking we need today. (chiming)

47 thoughts on “Now Go Build with Werner Vogels EP1 – Jakarta”

  1. I live in Indonesia and have seen much more of the problem and the struggling for small holder farmers. Its unfair for those farmers to have below average financial prosperity while the loan sharks and traders dealing with them took the most profit.
    I do hope that God bless the farmers because they work hard to provide our daily food when we give them little to none of our attention to their daily struggles.
    Thanks for this video Werner!!

  2. Outstanding video. Thank you for spotlighting this very innovative company and covering . both the social impact and technology. I am looking forward to more episodes.

  3. Seen this video and check out their web at haratoken.io gives me clear reason on why Amazon picked up the innovative solution of HARA! They combined technology and social impact, big applause for #HARAToken!!! LOOK FORWARD TO SEE NEXT EP!

  4. It's amazing how these guys use advance technology such as blockchain for real world problem!!! and the fact that this Hara thing is build by Indonesian it's just mind blowing!
    Thank you for the video!

  5. The goverment nowdays seems doesn't support the farmer formally. They just build the fuckin ringroad and some not really useful for small people.

  6. Thank you for your concern And SUPPORT us. This Is How supposed to live And lift it up our life. I am proud of you All. Briliant!!!!!

  7. Hello Amazon AWS Team, this video have a very good quality and informative documentary video about HARA. Thank you for coming to Indonesia and promote our Local Start Up to the world. As one of Hara offline sales partner, We Hope Hara can make a huge difference for farmers and agriculture industries.

  8. Hopefully with HARA Indonesia get "Swasembada Pangan", prospered the farmers. HARA is a technology modern farm, gorgeous!

  9. Super Awesome Info. Can't wait to see the impact changing the way we r living. It might take some time but this is one step ahead of modernising our people's mindset together with the advanced world blockchain system. As the wise man always saying " Together We Make The World A Better Place "

  10. baru tau tentang HARA ini, akhirnya ada start up yang melirik dan memanfaatkan anugrah yang sudah di karuniakan di negeri ini, yaitu tanah yang subur dan petani yang banyak, maju terus HARATOKEN!, mungkin bukan hanya HARATOKEN, semoga semakin banyak start up lain yang bermunculan untuk membantu negeri ini terus memuncak!

  11. That was very inspiring and it was great to see the in depth technical strategies of the company. I feel that this company could partner with drone operators to help out with the fertilizers and crop inventories though especially with those vast landscapes.

    Please continue with this amazing series!!

  12. من از شمال ایران هستم و کشاورز
    پرورش برنج .. در محل اقامت من یکی از باکیفیت بالا محصول برنج داریم .. از دیدن مستند ارزشمند شما خوشحال شدم .. به امید سر بلندی و رفاه امن همه کشاورزان عزیز در کره زمین .. درود و سپاس فراوان

  13. ESTOS MALDITOS NO SE CONFORMAN CON POCOS MINUTOS DE ANUNCIO EN SU COMERCIAL. ES ABUSAR PONIENDO SU PORQUERIA COMO 10 MINUTOS DE INTERRUPCION.

  14. Hey Werner and AWS! Check out Everest, a blockchain project for digital identity for one of you next episodes! They have several pilots running in Indonesia, Cambodia, Singapore, and others, and got covered by Forbes and New America. Really great blockchain project with a strong social impact for poor people, refugees, and others excluded groups.

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