Financial Services Industry Strategy Architecture for Initiating Biogas Finance Development In Indonesia

Indonesia is an agricultural nation with significant potential for bioenergy (biodiesel, bioethanol, biomass, and biogas) and is poised to see a 50 percent increase in biofuel consumption and production. This potential is crucial for reducing carbon emissions by transitioning from fossil fuels to new and renewable energy sources. This study evaluates the government’s efforts to promote biogas usage via PLTBg (biogas power plants). The study develops a strategic architectural framework using SWOT analysis and the Berlian Porter model with secondary data. The findings outline the development of financing strategies for biogas utilization through PLTBg in three phases: preparation and acceleration (short term), expansion (medium term), and final goal achievement (long term). The financing process follows a build, own, operate, and build-own-transfer business model, incorporating the 5C Principles aligned with ASRI principles. To optimize the biogas financing process, stakeholders have agreed to enhance efficiency in the biogas sector through PLTBg and foster a competitive business environment to prevent agency problems. The goal is that proper implementation of this strategic architecture will expedite the transition to renewable energy, especially biogas, via PLTBg, using suitable funding schemes or financing from the financial services industry.