Finance Partners

LPO (Lending Partner Organization)

LPO or Lending Partner Organization is a credit provider partner to assist potential users who want to build a biogas reactor. Usually, those who target these credit loans are households who wish to use biogas technology in their homes.

Financial institutions interested in becoming partners in providing credit for the BIRU program can directly contact Yayasan Rumah Energi. Usually, national banks, regional banks, and microfinance institutions, including dairy cooperatives, have a savings and loan unit who are members of BIRU’s partners. Or it could be a dairy cooperative that offers a payment system through the exchange of milk with members consisting of dairy farmers.

BIRU Program and KIVA Foundation

One of the partnership programs for credit provider partners carried out by Yayasan Rumah Energi is a collaboration with the KIVA Foundation. KIVA Foundation is based in the United States. This cooperation has been running from 2014 to 2017 with a total loan of USD 50,000 or equivalent to IDR 725,000,000.00. What benefits from the KIVA Foundation green credit program are interest-free loans. What is certain is that it will be profitable for prospective households using biogas technology.

KIVA Foundation provides a savings and loan system as one of the credit providers offers prospective users for its work scheme. Currently, the beneficiaries of the KIVA Foundation credit provider program are registered 192 farmers who are members of 28 assisted groups and are spread across five provinces, namely Central Java, D.I Yogyakarta, Lampung, West Nusa Tenggara, and South Sulawesi.

The characteristics possessed by the program in collaboration with the KIVA Foundation include:

  • Crowd-funding
  • Business to Consumer (B2C) concept
  • YRE and Mitra Pembangun act as loan providers
  • 0% interest rate, 12-24 month tenor, collateral: livestock owned / taken bio-slurry
  • Returns in cash
  • Joint responsibility group loans
  • Digester construction and installment collection by Construction Partners
  • Implementation in Central Java, D.I Yogyakarta, Lampung, West Nusa Tenggara, and South Sulawesi


To implement the Indonesia Domestic Biogas Program (IDBP) or known as BIRU Program, besides requiring personnel or partners in the construction sector, financial partners are also needed to accommodate the desire to build a biogas reactor for potential users.

Currently, four provinces have benefited from the financial partnership program, especially cooperation with cooperatives / CU (Credit Union), including Lampung, Yogyakarta, Flores, and Central Kalimantan. This collaboration will help potential users to get productive credit to build and develop business possibilities using biogas.

To run it, several characteristics characterize as well as guidelines in running the partnership program. Such as:

  1. Utilization of the cooperative credit network (Credit Union)
  2. Business to Consumer (B2C) concept
  3. Pure credit funds from member deposits
  4. There are inter-lending opportunities for Primary Cooperatives.
  5. Loans are only given to individual members based on the member’s ability and have attended Basic Financial Literacy training/household financial management
  6. Disbursement and loan refunds can be done with a system of cut/add member savings (Cash Less)
  7. Interest rate 1-1.5% per month, effective, 12-18 month tenor
  8. Partnership with Construction Partner Organization (CPO) to distribute biogas credit.
  9. In addition to the biogas reactor loan, it also provides loan products for worker training, utilization of bio-slurry, and development of biogas application workshops.
  10. Implementation in Lampung, Yogyakarta, Flores and Central Kalimantan
  11. Trial of biogas credit without BIRU Program subsidies


Apart from working with cooperative partners and Lending Partner Organizations, the BIRU program also works with individual banks to provide credit for biogas users. One bank with a credit provider program with low-interest rates while supporting the lives of farmers is Rabobank.

Rabobank is the bank with the largest percentage of customers working as farmers in the Netherlands. Rabobank has a particular foundation called Rabobank Foundation (RBF) to provide light loans and easy terms. RBF’s loan interest is 8% in a year for a maximum tenor of 60 months.

With a tenor and interest that makes it easier for borrowers, the Rabobank Foundation has benefited five provinces, namely West Java, Lampung, Central Java, Bali, and South Sulawesi. To understand more about the characteristics here is more detailed information:

  1. Disbursement of biogas loan CSR funds to member-based Financial Institution Partners
  2. Business to Business (B2B) Concept
  3. Loans to individual members
  4. Based on the proposal, the interest rate is flat 8%, tenor 60 months, collateral: livestock.
  5. Daily and cash return of cut milk deposits
  6. Partnership with BIRU program / CPO construction partners to channel biogas credits
  7. Implementation in West Java, Central Java, Bali, and Lampung