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Biogas Appliances Innovation in Rural Area of IndonesiaCase Study: Developer of Biogas Appliances in Lembang, West Java, Indonesia

Purnama Alamsyah

Kusnandar

The 4th Indonesia International Conference on Innovation,

Entrepreneurship, and Small Business (IICIES 2012)

Universitas Ciputra, 26-28 June 2012

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Content

1. Introduction

2. Case studies

3. Conclusions

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Introduction

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Introduction

There are many biogas projects dedicated forsmallholders in rural Indonesia

Biogas projects implemented in rural areas ofIndonesia provide an opportunity for other partiesto generate project-related technologies such asbiogas equipments/appliances Biogas BCL.

Biogas BCL has been able to make biogasappliances such as stoves and lamps to biogasenergy sources and has marketed to thesmallholders who have a biogas digester.

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Introduction (2)

Innovation in SME such as in Biogas BCL plays akey role so this company can survive and competewith other competitors.

This paper tries to analyze the innovation processconducted by BCL in adopting and developingtechnology equipment as well as obstaclesencountered in the innovation.

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Case studies

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Biogas BCL Profil

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Biogas BCL is located in Cicalung, Lembang, WestJava.

Biogas BCL (Barudak Cicalung Lembang) is an SMEspecializing in biogas appliance 2009

Biogas BCL was formed with the vision to utilizecows manure that pollute Lembang environmentbecomes a useful commodity that can create newjob fields for local youth

Biogas BCL has made some appliance such as biogasstove, water drain, manometer, biogas lamp, etc.

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Business Environment

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Biogas BCL is an SME which supplies biogasequipment for BIRU program through CV.Khasanah Bahari

Not many companies produce biogas appliancePT Solihin Jaya (Butterfly) and PT. MetalindoTeratai Putera

Biogas BCL 2 founders + 4 employees

Biogas BCL produces hand made biogasappliance

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Business Environment (2)

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Biogas BCL networks and partnership

NGO BIRU Program (HIVOS + SNV), WWF,IBEKA, etc

Cooperative KPSBU, KSU Tandangsari

University ITB

Companies Danone, Petrokimia Gresik

Biogas user

Local government

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Innovation in Biogas BCL

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The founder has an important role in innovationprocess

In innovation building, Biogas BCL has used avariety of communication networks andinformation intensively in the scope of bothcompanys internal and external

Product innovation process undertaken by BiogasBCL was initiated through research activities whichyield biogas equipment Some portions of thecompany sales income is used to finance R&Dactivities

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Innovation in Biogas BCL (2)

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Biogas BCL monitors appliance and service of theuse of biogas they made for customers getfeedback on to what extent the equipment can beaccepted by the user.

In the process of making biogas appliance, not allof the manufacturing process conducted by BiogasBCL

Biogas appliance productions are also based onaccumulated knowledge possessed by Biogas BCL.

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Innovation in Biogas BCL (3)

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Innovation process barriers and problems

Limited number of employees

Low employee skills

Limited operational capability

Limited financial capability

Biogas BCL is an SMEs that thinks learning processis important. Biogas BCL learns from project toproject and learn how to corrects failures.

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Conclusions

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Some Conclusions

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Leadership becomes a key factor in innovationprocess of Biogas BCL

Although Biogas BCL is an SME, but it has beendoing R&D activities in the creation of its productsinnovation.

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Thank you !

Purnama Alamsyah | purnama.alamsyah@gmail.com

Kusnandar | kussrai@yahoo.com