Jakarta, August 8, 2023 – Rekosistem, an Indonesian climate-tech startup, has secures an investment of USD 5 Million or approximately IDR 75 billion in an investment round led by Skystar Capital and supported by East Ventures, Provident, and other investors. During initial days, Rekosistem got support from the Bali Investment Club, East Ventures, and various of angel investors. Through this funding, Rekosistem is committed to scaling up its waste management capacity to more than 20,000 Metric Tons of waste per month in the next 2 years.
This target will be achieved through a series of strategic steps, ranging from developing a waste management system, expanding the application of IoT (Internet of Things) and Machine Learning technology, allocating resources for the development of recycling technology, and improving material recovery facilities (Reko Waste Station and Reko Hub). The goal is to process more waste, more than 70% of waste types, into recycled materials and renewable resources, expand waste management coverage to more cities and provide an Extended Producer Responsibility program that encourages business owners to take responsibility for their business impact on the environment. To achieve these goals, Rekosistem plans to engage 5,000+ workers and business partners in its digital ecosystem.
Launched in 2021, Rekosistem is committed to driving the adoption of a circular economy in the waste supply chain by utilizing an integrated waste management system using the Internet of Things (IoT) and Machine Learning to simplify and improve waste collection efficiency by 49%. Rekosistem’s products, Reko Waste Station and Reko Hub serve as collection points and material recovery facilities that efficiently process mixed waste into high-quality raw materials. These facilities are equipped with IoT sensors, which enable real-time data collection and monitoring. Integration with Machine Learning technology improves system analysis and optimization, so workers’ payments will be based fairly on performance, and machine usage can be optimized to achieve material production targets from waste.
“At Rekosistem, we are determined to build a business adept to face the three biggest challenges facing businesses in the current generation which are the 3Ps, namely profit, people, and planet. Through circular economy implementation in the existing waste supply chain, our products and services aim to make responsible production and consumption accessible to everyone,” said Ernest Layman, CEO and Co-Founder of Rekosistem.
Rekosistem uses B2B and B2B2C business models to reach businesses and end consumers through mobile and web applications. The app offers responsible waste management services for residences, buildings, and local governments in partnership with the stakeholders in waste management, be it individuals and business sectors. Through Rekosistem, waste can be efficiently collected and transported to processing centers to be processed into valuable materials and resources in factories, reducing the accumulation of waste in landfills.
“In addressing the waste problem in Indonesia, the B2B business model is the appropriate approach because the waste supply chain issue in Indonesia is systematic in nature. This business model allows us to transform the currently fragmented waste supply chain into a more circular ecosystem in the most efficient and optimal way, together with all our business partners,” explained Joshua Valentino, COO and Co-Founder of Rekosistem.
Abraham Hidayat, Managing Partner of Skystar Capital, expressed his optimism about the growth of the waste management sector in Indonesia, stating, “The waste management sector offers many growth opportunities for players who can effectively operate in this fragmented industry. With expertise and deep experience in this sector, we see that Rekosistem is well-positioned to address several fundamental issues in this field and leverage many untapped opportunities,” he said.
“As the strong and early backer of Rekosistem, we believe that Rekosistem is a real example of a business that is in line with our mission, to carry out business practices with the strong environmental, social and governance (ESG) values, while remaining competitive and attractive in the market. We have witnessed positive progress and developments brought by Ernest and team, and we are excited to continue collaborating with Rekosistem to bring positive impacts in the waste management industry and contribute to the circular economy in Indonesia,” said Avina Sugiarto, Partner at East Ventures.
“Rekosistem’s platform supports Indonesia’s Net Zero Emissions Target by reducing carbon emissions through waste management to achieve zero waste, minimizing pollution to the environment and distributing segregated waste to the fitting industries to replace the use of virgin materials with recycled raw materials and renewable resources,” said Ernest Layman.
In the first half of 2023, Rekosistem has successfully increased waste productivity to 523% for recycling, upcycling, and waste-to-energy, while also increasing waste workers’ income by 117%. Currently, Rekosistem has 300+ waste workers and business partners, 10 Reko Hub, and 33 Reko Waste Station. Rekosistem also serves more than 100+ business customers and 20,000+ households, reaching 100,000+ people and managing 2,500+ Metric Tons of waste per month. This improvement is reflected in Rekosistem’s performance over the last 12 months, achieving a seven-fold increase in annual revenue. To date, Rekosistem has saved 12,615 Metric Tons of CO2 by replacing new materials with recycled materials and preventing waste pollution in the environment, bringing positive impacts to the environment.