1. UniversitasMuhammadiyah Yogyakarta Renewable Energy Project Development Technical Working Group (TWG) IV Meeting Works Progress Grand Candi, Central Java, July 09 th 2011 Biogas Construction Bussines Plan Segoroyoso Village Bantul Regency Yogyakarta Province

2. Activities Schedule Plan - on 2011(blue) Achieved Action – (red) Activities (TWG IV) JanFebMarAprMayJunJulAugSep Finalization business plan New schedule Completing report Work on draft Bussines Plan, chapter 1-6 and economic analysis Final report

3. BUSSINESS PLAN

4. Section 1: Executive summary In the executive summary try answering the following questions on your project: What are you planning to implement? Where are you planning to implement? Who will conduct the implementation? How will the project be implemented? With what funds or what funds does it need? Why is it desirable for the project to be implemented? What benefits will it bring? What if something does not go according to plan?

5. Section 2: Market analysis 1.Geographic description of selected location  Yogyakarta Province has five regenciess and one municipality. One of them is the Bantul regency which has an area of ​​ 506.85 km 2, and is divided into 17 sub districts, 75 villages and 933 hamlets  Bantul regency area consists of plains which are located in the middle and hills on the east and west, and south coast regions.  Agricultural cultivation represents nearly half of the total area of ​​ Bantul Regency, with a high fertility rate supported by the use of technical irrigation in most of the existing rice acreage.  Bantul Regency has a large potential in the agricultural sector, including large livestock. Large livestock includes buffalo, cows, and horses, while small livestock includs goats and sheep

6. Administrative Map of Bantul Regency, Yogyakarta Province Bantul

7. TWG IV Location Segoroyoso Village, Pleret District Bantul Regency

8. Segoroyoso Village is one of the villages located at the south of Pleret sub District and is located about 40 km from Yogyakarta. The village can be easily reached by traveling overland with a time of about 45 minutes. Segoroyoso Village profile :  Area (Ha): 487.09 Ha  Number of population: 7929  Number of households: 2449  Average number of persons per household: 3,23  Population density per km 2 : 1627 Segoroyoso village has an area of ​​ 487.09 hectares. The land is divided into a rice field area of ​​ 222.46 ha, dry land area of ​​ 132.8 ha, garden area of ​​ 94.05 ha and other land use covering an area of ​​ 37.78 ha.

9. Land use Segoroyoso area 487.09 Ha. The area use for rice field 222.46 Ha, dry land 132.8 Ha, yard 94.05 Ha and others 37.78 Ha. From the above fgure,it can be seen that the most land is used for rice cultivation (46%)

10. Demographic profile of selected location AgeMaleFemalePercent < 191250105329,05% 20 – 502331226057,90% >5054648913,05% Population base on age Segoroyo Village Education Facilities at Segoroyoso village NoEducational levelNumber of facilities 1Kindgarden4 2SD (elementary school)4 3SMP (Yunior School)1

11. NoEducational levelMaleFemalePercent 1NF SD (elementary school493651 19,19% 2SD (elementary school)104791232,86% 3SMP (Yunior School)572780 22,68% 4SMA ( High School)690441 18,97% 5D3 (Academy)97762,90% 6S1 (University)/S2 (master)811213,39% Education Background of people in the Segoroyoso village

12. Economic profile Most villagers in Segoroyoso work in the agricultural sector, and there are also other kind of employees, entrepreneurs, laborers and merchants. The detail percentage by work type is describe below. The percentage of unemployment in the village Segoroyoso reached 37.56%. This could be due to the low level of education NoType of WorkPercentage (%) 1Farmer (Fram land and cow breeder)37.8 % 2Employee27.3 % 3Laborer24.21 % 4Enterpreuner9.08 % 5Other1.61 % Villagers Segoroyo type of work

13. NoCluster and class Average monthly income/production 1Household class 1IDR 2,000,000 2Household class 2IDR 750,000 3Household class 3IDR 1,500,000 4Household class 4IDR 1,500,000 5Entrepreneur class 1IDR 30 – 100,000,000 6Entrepreneur class 2IDR 5 – 10,000,000 7Entrepreneur class 3IDR 7 – 15,000,000 [B1] What is the difference between household classes 3 and 4?[B1] [B2] Wouldn’t it make more sense to arrange the classes based on increasing income – it would make following the analysis easier.[B2] Based on TWG V survey data and analysis, we can see that Segoroyoso villagers can be devided into clusters and classes based on type of work and average monthly income. An overviewof clusters and classes based on average income per month is shown below. Cluster and average income of Segoroyoso Village

14. The average monthly expenses of villagers in Segoroyoso for food consumption, energy, school and health can be described on table below. NoType of Expenses Total Amount ( IDR)/month 1FoodRp. 750.000,- 2Energy for cookingRp. 70.000,- 3Energy for Electricity & GasolineRp. 150.000,- 4SchoolRp. 150.000,- 5HealthRp. 50.000,- Total Expenses/MonthRp. 1.170.000 Average Expenses of Segoroyoso Village

15. Energy profile (current household energy situation) From the survey we have done, the following energy use patterns emerged, as follows:  Main energy sources for cooking are firewood and LPG  Main energy source for lighting is electricity  Energy for vehicle is gasoline Energy expenses per each cluster at Segoroyoso Village Cluster and class Average monthly income/production Energy expenses Percentage from monthly income or production Household class 1IDR 2,000,000IDR 200 – 350,000 10 – 15 % (average 12 %) Household class 2IDR 750,000IDR 325,000 43 % Household class 3IDR 1,500,000IDR 400,000 16 % Household class 4IDR 1,500,000IDR 700,000 52 % Entrepreneur class 1IDR 30 – 100,000,000 IDR 2.5 – 3,600,000 (average 2.9 millions) 4 – 10 % (average 8 %) Entrepreneur class 2IDR 5 – 10,000,000IDR 2,500,000 25 % Entrepreneur class 3IDR 7 – 15,000,000IDR 3.8 – 8,000,000 (average 5.7 millions) 52 % [B1] It quite strange that households with the same income (classes 3 and 4) have such different energy expenses. Can you explain this?[B1]

16. Current energy provision  The main sources of household energy for cooking are firewood and LPG  Energy for lighting is obtained from PLN, to which almost 100 % of the village households are connected. The type of power connected for electricity are 450 VA and 900 VA / household. An overview of energy types used in Segoroyoso is provided in table below. Priority in Activity Energy Type Priority 1 Energy Type Priority 2 Energy Type Priority 3 1. Cooking LPG (liquefied petroleum gas) Firewood--- 2. LightingElectricity Kerosene (in case of blackout) 3. TransportationPetrolSolar (mass transport)--- 4. IroningElectricity--- 5. EntertainmentElectricity--- 6. WashingElectricity--- 7. SewingElectricity--- Energy use at Segoroyos village

17. Estimate of total demand for the proposed technology In the Segoroyoso village there are 573 cow breeders with around 1505 cows. The picture 2.4 shows that cows is the largest livestock population at Segoroyoso village. It can be seen that in Segoroyoso, the cow population percentage reaches some 94% and the percentage of livestock horses 6%. Large livestock in Segoroyoso is divided between 3 groups of farmers and 20 small farmer groups. This is a potential energy source that is large enough to be used as a source of biogas

18. In Segoroyoso village, a large enough community has knowledge about biogas. This is evident from the results of a local survey, it is because in Segoroyoso village biogas development ever undertaken. Knowledge of Biogas

19. Sources of Biogas Knowledge From the figure above we can see that most of them were informed about biogas from friends (30%), or they find out about biogas from the media (25%).

20. NoTahunRencana pembangunan 1201110 2201220 3201315 4201415 Total60 Biogas Development Plan in the Segoroyoso Village

21. Section 3: BIRU (Biogas Rumah) Programme  Many people in Indonesia, like in many developing countries, have lack of access to economical and convenient energy sources. For various reasons, energy services provided by the government or the private sector are difficult to access by those living in remote areas. When accessible, the communities – mostly the poor – are burdened by the expensive price of the services, leading to an even more economically vulnerable state. Although sustainable energy services will not solve the underlying cause of poverty, its limited availability will hinder the pathway to prosperity  To improve the lives of poor people around the world, and as a follow up to the World Summit on Sustainable Development, the government of the Netherlands created a program on sustainable development that emphasizes relations between poverty and energy. One main goal of this program is to provide access to energy services for 10 million people (2 million households) through means of sustainable renewable energy, including biogas. Introduction of the Biru Programme

22.  The BIRU Programme started in May 2009, got support from an SNV Senior Advisor as from August 2009 and has gradually built up its staff which currently counts around 28 persons, of which 18 are posted in provincial offices. When fully developed the BIRU programme will employ around 56 team members, will have up to 30 construction partners with ca. 240 masons and supervisors, aiming at developing the biogas sector able to build at least 8,000 biogas plants before the end of 2012.  Biogas plants are being constructed in selected districts of 6 provinces. These provinces are East Java, Central Java, Yogjakarta, West Java, Lombok and Bali

23. Technology description  The technology selected for BIRU is the fixed-dome reactor, which is an adaptation of existing systems used in other countries such as Bangladesh, Cambodia, Laos, Pakistan, Nepal, and Vietnam. This fixed-dome reactor is made from masonry and concrete work concealed underground. The system is proven to be environmentally friendly and a clean energy source. In Nepal, this technology is used in over 200 thousand households for more than 15 years, with 95% of the reactors currently still functioning.  The fixed dome biogas plant has a minimum lifetime of 15 years if properly used and maintained. Maintenance is easy, it merely requires the occasional checking and – if necessary – repair of pipes and fittings. To operate one unit, the farmer needs to have at least 3 cows or 7 pigs (or a flock of 170 poultry) to produce enough feed for the reactor to be able to generate sufficient gas to meet their daily basic cooking and lighting needs.

24.  There are 6 main parts to the digester : 1.Inlet (mixing tank) where animal dung is inserted to feed the digester, 2.reactor (anaerobic/non-oxygenated digester chamber), 3.gas storage (storage dome), 4.outlet (divider chamber), 5.gas carrier system 6.the bio-slurry pit or the animal dung compost pit which has been reduced of any gas (deducted of all gases).

29. The cost of a biogas installation and financing options Sizes (m 3 )4681012 Cows (ekor)34-567-89 Total kg of manure per day 3045607590 Gas produced (m 3 )11,522,53 Duration of use to stove (hour) 4681012 Construction cost (IDR million) 5,76,3788,8 Subsidies from Hivos (IDR million) 22222 The cost to be paid (IDR million) 3,74,3566,8

30. Construction process The construction process begins with designing the construction area, then dig the ground according to the size of the reactor to be built. Next are the hardening of the foundation and basic reactor dome, the building inlet, entering the soil to form a dome construction, put the dome in accordance with the standards and mixed in the ratio 1: 2: 3, build outlets, and install other components such as pipelines, where bio-slurry. After the dome is finished casted and dried

31. Social, economic and environemntal impact description The BIRU program will have broad effects of health conditions and job creation as well as the local economy, including:  Strengthen the integration of agriculture and cattle breeding for the improvement of agricultural resources  Creating jobs in the biogas construction sector  Strengthen food security by improving agricultural output through the use of biogas slurry  Empowering women by providing opportunities in the national domestic biogas program as an operator of biogas engines, lights, and refrigerator. Economic benefits

32. Social benefits Social benefits to adopting the proposed technology are:  Reducing the burden of women to collect firewood and facilitates alternative additional activities to fill the time available, especially for female family members  Improving access to sanitation and to reduce diseases associated with poor sanitation  Reducing air pollution from smoke, which is closely related to respiratory diseases, eye infections, and accidental fires accidents due to the use of fire in open space  Improving sanitation and hygiene education

33. Environmental benefits  Reducing deforestation  Controlling greenhouse gas emissions from livestock and organic waste disposal  Recycling of nutrients and restore soil fertility  Promoting environmental awareness and link it to economic advantage

34. Slurry PUPUK ORGANIK STARTER KOMPOS MEDIA BENIH PESTISIDA ALAMI PAKAN TERNAK PAKAN IKAN BUDIDAYA JAMUR BUDIDAYA CACING

35. Desa Biogas

36. Section 4: Regulatory setting  To support the central government's targets on renewable energy development, in conformity with the Indonesian energy mix target of 2030, the Yogyakarta Province in 2011, have included biogas development activities (see table 4.1) for the community. Development of biogas are spread throughout the district contained in the Special Province of Yogyakarta. Pengembangan Biogas untuk masyarakat Terbangunnya digester biogas, genset Kab. Kl Progo, Gn Kidul, Sleman dan Bantul 1 1 2 2 3 3

37. Rencana Kerja Tahunan, tahun 2011 Dinas PUP dan ESDM Provinsi Yogyakarta

38.  Biogas development in each household depends on the individual desires of each. No special permit to build a biogas digester is required.  Financing schemes can include assistance / subsidies from the government or soft loans from the local village institute. To simplify the process of development, then the alternative is to collect primary materials in advance (brick, iron sand and cement), collected just after the start of development of biogas

39. Section 5: Project management  Biogas development in Segoroyoso village is included in the program CASINDO (Capacity strengthening for development and energy policy formulation and implementation of sustainable energy projects in Indonesia), more specifically in TWG IV on Renewable Energy Development Project  Developing a multi-sector-based biogas program involves various parties such as service providers and local construction workers who are supported by institutional training providers. Increased public interest in biogas must be balanced with competitive price and satisfactory after sales service. The biogas program must be carried out in collaboration with several parties such as private parties, government and civil society to ensure the establishment of industrial infrastructure for domestic biogas. Lending institutions such as banks and credit cooperatives, educational institutions such as universities, dairy processing industry, household appliances manufacturers and organic farmers 'associations' are some examples of institutions that participated in the program.

40. Most importantly, biogas development in Segoroyoso is supported by HIVOS’ Blue Programme which has a working partner in Bantul Paluma and village level government, district and provincial. Blue program also has a subsidy scheme for financing the construction of household biogas digesters. In addition, there are also several methods to attract people and alleviate the burden of financing the biogas installation, for example by a process called “Arisan”, which is effectively a form of collective crediting, whereby a group of people together collects money for the installation, and then each member of the group can install one unit when sufficient funds are collected. After a while, the next person in the group gets the installation and so on, until every member of the group has it. Where loan facilities are not available, this is an effective way to allow villagers to pay for their installation in installments. Also, the total cost of the installation for a household can be reduced, if the household makes a contribution in kind in the form of construction material.

41. Organization of the project For the development of biogas in Segoroyoso, the following parties will be involved:  ECN  Hivos  PUSPER UMY  Perangkat desa  ESDM Agency DIY Province  Wakil petani  Paluma sebagai mitra kerja

42. The Name and Address of Project Management The project management team for the Biogas Project at the Segoroyoso village consists of:  The Coordinator of Casindo Project Yogyakarta Region as a vice of Task Force Segoroyoso Biogas Development Project ( Surya Budi Lesmana - PUSPER UMY)  Mrs Mada Riani from HIVOS and Mr Pamungkas Jutta Prahara from PUSPER as a Team Socialization  Mrs. Tri from PALUMA as HIVOS partner for construction and socialization  Mr. Miyadiyana (chief of Segoroyoso village) and Mr. Alhadi (cow breeder) as a team member from Segoroyoso community

43. HIVOS Construction Partners Credit Provider House Hold - Subsidies - Labour Training - Provides loan KUD Mojosongo ( Central Java) Central java : -KUD Mojosongo -CV. QT. DIY : -Paluma -SPTN HPS UMY

44. Section 6: Technical feasibility Technical requirements of the technology (for each of the different installation options) Digesters for households usually have the smallest size of 4 m 3 capacity and the largest is 12 m 3 capcity. A digester with a size of 4 m 3 usually requires 20-30 kg of manure per day and size 12 m 3, the largest needs 120- 140 kg of cow dung. To obtain 20-30 kg per day of manure, at least 3 cows are needed, as well as adequate water availability to mix manure and water under a ratio of 1: 1. Space requirements for the biogas reactor according to the size of the reactor is shown in following table Sizes (M 3 )4681012 Space requirement (M x M)(3 x 6)(3,5 x 7)4 x 84,5 x 95 x 10

45. Availability of input requirements in the selected location  Cow dung mixed with water is very important input in Biogas production. Comparison between the cow dung mixed with water is 1: 1  Water availability in Segoroyoso very good. Communities use wells as a source of clean water daily. Water sources are never dry throughout the season, so water availability is always there.  In the Segoroyoso village approximately 573 cow breedersand 1505 cows. Approximately 100 households have cows between 2-3 cows each home, so the availability of cow dung is guaranteed. There are many space available for biogas construction.

46. Economic Activity Picture in Segoroyoso Village

47. Cow-skin crackers industry Cow-skin crackers are still cooked using fire-wood stove. Proposed RE project will be implemented to reduce the use of fire-wood stove.

48. Cow-skin cracker ( Krupuk Kulit)

49. Potential renewable energy sources: animal dung from chicken and cow husbandries.

50. IMPLEMENTATION PROGRESS BIOGAS CONSTRUCTION SEGOROYOSO VILLAGE CASINDO PROGRAMME

51.  Starting contact to HIVOS and conduct survey again for get house hold information detail (early February 2011)  To collaborate to Biogas socialization (mid of February 2011)  Starting earth excavation for biogas construction at Srumbung Segoroyoso Village ( 24 February 2011) Ownwer name : Bapak Alhadi Addres : Srumbung Segoyoso Segoroyoso Village Age : 43 years old

54. Tuesday, June 28th 2011 Pak Alhadi’s home About 15 people attend to this detail socialization

56. ENERGY FOR PROVERTY ALLEVIATION