Establish Hydroponic Farming in Ecologically Sensitive Areas

Challenge

Solution

Progress

We have secured agreement to establish two Nutrient Film Technique hydroponic systems, one in Sumber Agung and one in Bagan Asam. These will be built in Q1 2026 and based on two hydroponic systems that Sangga Bumi has established in the Bentarum landscape of West Kalimantan. These systems are being managed by villagers and are producing regular harvests of lettuce, water spinach, pak choi, and mustard greens.  The hydroponic systems in Bagan Asam and Sumber Agung are designed not only to produce fresh vegetables, but also to strengthen village food security and local economic resilience. With short production cycles and regular harvests, hydroponics provides a more stable, non-oil palm income stream that can help buffer households when fresh fruit bunch (FFB) prices decline without requiring further land expansion.

Beyond production, the systems will serve as learning hubs for modern cultivation practices and professional farm management, including crop planning and production record-keeping aligned with market demand. Managed collectively, they also create opportunities for women and youth to participate as active economic actors, positioning hydroponics as an inclusive, productive, and sustainable village enterprise model.

Early results from the hydroponic systems in Bentarum demonstrate strong economic potential at the village level. Each system contains 228 planting holes and requires relatively low operational inputs per growing cycle, with costs of approximately IDR 205,000 (~USD 12) for nutrients, growing media to support plant roots, and seeds. Average yields vary by crop, with pak choi producing approximately 0.15 kg per planting hole, water spinach 0.07 kg, spinach 0.10 kg, lettuce 0.08 kg, and curly mustard greens 0.09 kg per planting hole.

To achieve the targeted profitability, future hydroponic production will focus on pak choi, curly mustard greens, and lettuce. Based on these crops, total yields remain economically attractive. Planned selling prices are IDR 30,000 per kg for pak choi, and IDR 40,000 per kg for both lettuce and curly mustard greens. Using these prices, the system can generate strong gross revenue per harvest cycle, supporting an estimated net profit of approximately IDR 815,000 (~USD 48) per growing cycle, depending on crop composition.

Initial investment costs for the hydroponic installation and greenhouse total IDR 5,082,000 (~USD 300) and are spread over an estimated lifespan of two years, equivalent to approximately IDR 211,750 per month (~USD 12/month). This phased investment approach helps ensure that the system remains affordable and financially viable for community-managed adoption.

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