Indonesia | AgTech
Scaling Climate-Smart Rice Farming in Indonesia with Rize
Indonesia, the world’s third-largest rice producer, faces a paradox: while rice is vital for food security, its cultivation is a major contributor to greenhouse gas emissions—particularly methane. Traditional rice farming methods are water-intensive and environmentally unsustainable, and smallholder farmers often lack access to affordable financing for inputs like seeds and fertilizers. This traps them in a cycle of low productivity and environmental degradation.
The intervention by Rize
Rize is an agri-tech company founded in 2023 with a bold mission: to decarbonize rice farming in Southeast Asia. Rize empowers smallholder farmers in Indonesia and Vietnam to adopt the Alternate Wetting and Drying (AWD) method—a climate-smart technique that reduces methane emissions by up to 50% and water usage by 15-20%, while maintaining or even improving yields.
Rize’s model integrates several key components to support smallholder farmers. It offers input financing through a “buy now, pay later” scheme, allowing farmers to access essential resources without immediate payment. This is complemented by technical support provided by a dedicated team of agronomists, ensuring that farmers receive expert guidance throughout the growing season. Additionally, Rize is preparing to launch access to markets, which will help farmers secure fair prices for their produce and reduce the risk of loan defaults. To tie it all together, digital tools are used for monitoring and data collection, enhancing transparency and efficiency. In just under two years, this comprehensive approach has already reached over 6,000 smallholder farmers.
The role of Rabo Foundation
In May 2025, Rabo Foundation approved a working capital loan to Rize. This marks our first lending partnership with the company and supports their operations in West and Central Java. This financing enables Rize to pre-finance inputs for farmers, bridging the gap between planting and harvest, and to scale their impact sustainably.
Potential Impact
Rize’s approach closely aligns with Rabo Foundation’s strategic goals. By promoting climate-smart agriculture, such as the adoption of Alternate Wetting and Drying (AWD), Rize helps reduce greenhouse gas emissions and conserve water. The model also strengthens the value chain through direct partnerships with input suppliers and by preparing to offer farmers access to markets. Additionally, Rize supports inclusive finance by providing affordable input loans, reducing farmers’ dependence on informal lenders.