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This biogas programme will utilise the Asian biogas experience in an adapted way in Indonesia, starting with four provinces in 2009 and to be extended to two more provinces outside Java from 2010. The programme targets small-scale livestock owners in areas where wood fuel is becoming scarce and aims to support the construction of some 8,000 domestic biogas digesters, of which 2,000 of Java. The Government of Indonesia’s effort to offer substitutes for kerosene as cooking fuel is another main driver of the programme.

The programme will be funded by the Royal Netherlands Embassy and implemented by two civil society organisations. Overall programme and fund management as well as technical assistance will be carried out by Hivos, while SNV will provide knowledge transfer and back-up of technical assistance. The programme will be implemented by Biogas Programme Offices in each province, selected in consultation with relevant stakeholders.

The proposed programme focuses on implementation through a multi-stakeholder sector development approach, creating a market-based biogas sector, involving locally trained contractors and masons who are supported by vocational training institutions. Biogas digesters do not come cheap, so to reduce the cost barrier, banks and micro-finance institutions will provide loans to the end users. An investment incentive of approximately 25% will be offered by the programme.2 End users are protected against construction errors through a guaranty system. The role of rural development NGOs, dairy cooperatives as well as governmental and private agricultural and live-stock extension services are integrated in the programme.