Renewable energy resources in Indonesia have become a paramount issue to discuss in the last few decades. Apart from environmental issues, renewable energy resources are needed to fulfil Indonesian increasing energy consumption about 1.3% per year. Indonesia has many options for renewable energy resources along its archipelago. Cow manure is one of the alternative that can be found almost in every part of Indonesia. The potential of biogas from cow manure has been implemented in many areas, however those projects are still independently segmented for household in a small scale project for internal use only. In order to make it more impactful, theproject should be escalated to bigger scale with business orientation. This study aims to explore medium scale biogas project business model by Perusahaan Gas Negara (PGN) to support its mission in renewable energy supply and United Nation (UN) Strategic Development Goals. This study will mainly focus on the potential of dairy business to support the bigger scale of biogas project. This study uses qualitative approach through in-depth individual interviews with respondents of selected institutions related to biogas business. The authors validate the primary data by comparison with previous researches’ findings. The first step of the study is to define the business model elements of biogas without dairy product by using Business Model Canvas approach. The next step is to incorporate dairy product delivery as its business development by Blue Ocean Strategy. The outcome from this study is a sustainable biogas business model by incorporating the contribution of dairy product sales into the ordinary philanthropic biogas project. This study benefits the policy maker in PGN by giving a breakthrough business idea. This biogas pilot project will be the answer to the challenge for PGN to develop a renewable energy business in Indonesia as well as to support UN Strategic Development Goals.

Academic Supervisor : Dr. Ir. Amelia Naim Indrajaya, MBA