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Indonesia's startup scene is rapidly shifting towards sustainability. Environmental tech and circular economy startups are gaining traction as the country, the world's fourth most populous and Southeast Asia's largest economy, grapples with major environmental issues like waste, agricultural inefficiency, and high carbon emissions.
These new Indonesian startups are tackling local environmental problems while developing scalable, globally impactful solutions. They demonstrate how developing nations can lead in sustainable innovation, building profitable businesses that create jobs, empower communities, and drive positive environmental change.
The government's 2024 Circular Economy Roadmap, aiming for Rp500 trillion ($30.53 billion) in economic value, strongly supports environmental tech startups. This, combined with abundant natural resources and urgent environmental needs, positions Indonesia as a key player in Asia's sustainable future.
These three remarkable Indonesian startups that exemplify how environmental innovation can drive both social impact and commercial success. These companies represent different approaches to sustainability—from agricultural waste conversion to biotechnology innovation to AI-powered waste management—yet all demonstrate the potential for Indonesian entrepreneurs to create world-class solutions addressing global challenges.
Jakarta | Circular Economy | Series A Stage
Founded by Muhammad Fauzal Rizki, Sampangan represents a groundbreaking approach to Indonesia’s massive agricultural waste problem, converting over 100 million tons of annually generated agricultural byproducts into high-value industrial materials. The Jakarta-based startup operates with the mission to “build a waste-free world” through proprietary carbonization technology that prevents agricultural waste burning while creating profitable products.
Innovation Spotlight: Sampangan’s revolutionary “Magic Box” carbonization technology transforms agricultural waste including coconut shells, rice husks, and palm oil waste into four distinct product lines: Carbonise (activated carbon), Biodesis Liquid Smoke (fertilizer and pest repellent), Biocatalyst (efficiency enhancers for biofuel and pharmaceuticals), and Biofertilizer (organic soil enhancement).
Environmental Impact: The company directly addresses Indonesia’s status as Southeast Asia’s highest carbon emitter by preventing open burning of agricultural waste, which significantly contributes to air pollution and greenhouse gas emissions. Their operations support cleaner air quality while converting waste streams into valuable industrial inputs.
Market Success: Sampangan has achieved official recognition from Indonesia’s Ministry of Environment, with their technology registered and audited by government agencies. The company serves B2B industrial markets requiring water treatment, energy efficiency solutions, and sustainable materials, demonstrating strong commercial viability alongside environmental benefits.
Future Outlook: With proven technology validation and government endorsement, Sampangan is positioned for expansion across Southeast Asia where agricultural waste management challenges are similar. The company’s model provides a template for agricultural waste monetization that could be replicated in other developing markets.
Bandung | Biotechnology | Series A Stage
MYCL represents Indonesia’s breakthrough in biotechnology innovation, transforming agricultural waste using mushroom mycelium technology into premium biomaterials that compete directly with traditional leather and construction materials. Founded by five ITB graduates including Adi Reza Nugroho and Ronaldiaz Hartantyo, the startup has evolved from mushroom cultivation into internationally recognized sustainable materials innovation.
Innovation Spotlight: MYCL’s proprietary mycelium technology creates two flagship products: Mylea™ (sustainable leather alternative with 16.8% lower carbon emissions than bovine leather) and Biobo™ (construction materials for interior applications). The process binds agricultural waste with mushroom mycelium over 5-6 weeks, creating durable, biodegradable materials suitable for fashion, automotive, and construction industries.
Global Recognition: In 2024, MYCL became a finalist for Prince William’s prestigious Earthshot Prize in the “Clean Our Air” category, competing for £1 million in funding and positioning among the world’s most innovative environmental solutions. The company also operates production facilities in Japan through a joint venture, demonstrating successful international expansion.
Investment and Partnerships: MYCL has raised $1.2 million from prominent investors including AgFunder, Temasek Lifesciences Accelerator, Fashion for Good, and 500 Global. The startup collaborates with international fashion brands, achieved B-Corporation certification, and participates in Paris Fashion Week, demonstrating market acceptance of their innovative materials.
Scientific Validation: The company’s peer-reviewed Life Cycle Assessment publication in collaboration with Indonesia’s National Research and Innovation Agency (BRIN) provides independent validation of their environmental claims, contributing to scientific understanding of mycelium-based materials.
Community Impact: MYCL partners with 500 local mushroom farmers in West Java, purchasing agricultural waste that would otherwise be burned, while employing 47 workers with 50% women representation. Their localized supply chain approach strengthens rural communities while maintaining cost efficiency.
Bali | AI Technology | Growth Stage
Gringgo transforms Indonesia’s waste management crisis through artificial intelligence, community empowerment, and innovative energy solutions, serving over 200 locations across Indonesia while addressing the country’s position as the world’s third-largest waste sector emitter. Founded by Olivier Pouillon and Febriadi Pratama, the startup digitizes waste management while empowering informal waste workers rather than displacing them.
Technology Innovation: Gringgo’s AI platform provides smart waste recognition through smartphone photography, GPS-optimized collection routes, real-time monitoring of waste generation patterns, and community engagement tools that formalize previously informal waste management relationships. The system helps waste workers identify recyclable materials, determine market values, and maximize income while improving recycling rates.
Global Recognition: Selected as one of only 20 organizations from over 2,600 applicants for Google’s AI Impact Challenge, Gringgo received a $500,000 grant from Google.org to develop AI capabilities for waste management. This partnership enabled sophisticated artificial intelligence development in collaboration with Datanest.io.
Revolutionary Energy Solution: Gringgo’s BioCore technology converts human waste and organic materials into energy briquettes that can replace coal in industrial applications, potentially increasing fuel efficiency by 50% compared to conventional petroleum products. Early testing indicates 15 kilometers of travel possible with energy equivalent to one liter of gasoline.
Community Empowerment: The startup specifically focuses on empowering Indonesia’s approximately 1 million informal waste workers through technology solutions, training programs, and income enhancement rather than displacement. Gringgo’s approach involves extensive consultation with waste workers to understand challenges and incorporate their needs into technology solutions.
Scalable Impact: Operating across 200+ locations throughout Indonesia, Gringgo demonstrates scalability and adaptability to diverse community contexts. The company’s comprehensive approach includes digital literacy training, capacity building, and community engagement that ensures sustainable adoption of waste management technologies.
The success of Sampangan, MYCL, and Gringgo offers important lessons for entrepreneurs, investors, and policymakers across Asia:
Environmental Challenges as Business Opportunities: These startups prove that environmental problems can become sources of significant business value when addressed through innovative technology and inclusive business models.
Importance of Scientific Validation: All three companies invest heavily in research, peer review, and collaboration with prestigious institutions, providing credibility essential for scaling biotechnology and environmental innovations.
Community Engagement as Competitive Advantage: Success in environmental technology requires deep community engagement and understanding of local contexts, making community-centered design crucial for sustainable impact.
Government Support Enables Scale: Policy frameworks supporting circular economy development, research collaboration, and environmental technology provide essential foundations for startup success.
As climate change pressures intensify and sustainability becomes increasingly critical for economic development, Indonesian environmental startups are positioned to play crucial roles in both national development and global environmental solutions. Their continued success will likely inspire similar innovations across Southeast Asia and demonstrate how developing nations can lead sustainable technology innovation while building prosperous, environmentally responsible economies.
The transformation of environmental challenges into business opportunities, demonstrated by these three remarkable Indonesian startups, represents a model for sustainable development that creates value for communities, economies, and the environment simultaneously. As Indonesia continues building its startup ecosystem around sustainability principles, these companies provide inspiration and practical guidance for the next generation of environmental innovators across Asia and beyond.
Sources:
[1] Transforming Agricultural Waste into Sustainable Innovation https://dkkconsulting.id/publication/sampangan-transforming-agricultural-waste-into-sustainable-innovation
[2] Indonesia Has the Most Dynamic Startup Development https://www.ibai.or.id/news/item/6024-indonesia-has-the-most-dynamic-startup-development-ecosystem-in-asean.html
[3] Ministry preparing ecosystem to support circular economy https://en.antaranews.com/news/317634/ministry-preparing-ecosystem-to-support-circular-economy
[4] Ramah Lingkungan, Startup Mycotech Lab Ubah Jamur https://katadata.co.id/ekonomi-hijau/ekonomi-sirkular/66a1e0fabdaed/ramah-lingkungan-startup-mycotech-lab-ubah-jamur-jadi-pengganti-kulit-sapi
[5] Daily Markup 1091: MYCL is a 2024 Earthshot Prize finalist https://500.co/content/daily-markup-1091-mycl-is-a-2024-earthshot-prize-finalist-for-turning-crop-waste-into-a-sustainable-leather-alternative-and-keeping-our-air-clean
[6] The Gringgo Journey with Febriadi Pratama https://www.asean.or.jp/en/impact-asean/20240607/
[7] To reduce plastic waste in Indonesia, one startup turns to AI https://blog.google/outreach-initiatives/google-org/reduce-plastic-waste-indonesia/
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