Known as mycelium leather, named after the root structure of the fungus, the mushroom grows on sawdust, where its complex root structure will form a strong bond with the growth medium in one month, before it is cleaned, dried and slice to various sizes, depending on the need.
Mycelium leather technology is not new - similar research is being carried out in United States.
But claiming to be the world's first company to use mycelium leather for watch in their kickstarter page, managing director of Pala Nusantara says they hope to be the market leader for the sustainable material.
The cost of making mycelium leather is much lower than petroleum-based leather because it needs lesser water to grow, and emits a minimum amount carbon dioxide during production.
The watches, set at selling price between $64 and $92, are mostly sold online.
The company ultimately hopes to create mycelium bricks to build eco-friendly houses.