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Market Aggregator Profile: PT.Ditana Energy Solutions

2015-11-16 14:05:19

A Market Aggregator is “an organization, local or international, private sector or not-for profit, that contributes to the sales and distribution of clean biomass cookstoves in Indonesia.” They act as an essential component of CSI Indonesia as they have formed deep relationships with the target communities in which they directly work.

Founded in 2014, PT Ditana Energy Solutions (Ditana) is a global distributor and wholesaler of clean, energy-efficient biomass cookstoves in Indonesia. Their mission is to serve those 24.5 million households in Indonesia whom still rely on firewood as their main fuel source. In so doing, Ditana seeks to reduce the time and money spent by households on meeting energy needs, reduce negative impacts on health from indoor air pollution and reduce global greenhouse gas emissions and deforestation. Elected as a Market Aggregator for CSI Indonesia, Ditana distributes CSI-accredited Prime biomass cookstoves across the Central Java and Yogyakarta special region.

Among the first call of seven CSI-approved clean cookstoves, Ditana disseminates the Kompor Prime Kayu, Kompor Prime Pelet and Kompor Prime Pelet Besar stoves, each receiving seven, eight and eight out of nine stars, respectively, accessing the subsidies through the Results-Based Financing (RBF) mechanism. Currently their distribution efforts have been focused on the Kompor Prime Kayu – which utilizes fuelwood – as this is the most affordable and convenient option for the target communities given their biomass preferences. Ditana aims to sell 4,000 units in the pilot area of Central Java and Yogyakarta. 

Q&A with Ditana Business Development Manager Lincoln Rajali Sihotang:

Q: What is Ditana’s objective working with CSI Indonesia?

A: The incentive from CSI Indonesia will help Ditana to reduce the burden of the initial investment and help expand and scale up its business operations in Indonesia. As CSI Indonesia is a collaborative program by the Ministry of Energy and Mineral Resources, the World Bank and other supporting organizations, Ditana will benefit from the promotional activities and network provided by CSI Indonesia.

Q: What impact has Ditana had on the communities they work with?

A: In Central Java, Ditana works mainly with individuals that are recruited as sales agents to sell the stoves to households. Ditana provides training on the usage and maintenance of the stove, as well as sales and marketing support. The partnership between Ditana and its partners has not only provided the community members access to clean and fuel-efficient cookstoves to replace their three stone fire or traditional stoves but has also created new business opportunities which has increased their income and improved livelihoods.

Q: How has the government accreditation affected Ditana’s distribution efforts?

A: The government accreditation of the cookstoves has given the buyers a new understanding of the health benefits of Prime cookstoves, giving the buyer trust in the product. It has made the distribution of stoves easier compared to the existing stoves in the market that have not received accreditation from the government. The accreditation of the cookstoves is also positive for the manufacturer, Prime Cookstoves, as the increased domestic demand increases volume which drives scale in manufacturing, ultimately reducing the end-user price. 

Q: What direction do you see this project going into the future?

A: At the moment CSI is only implemented in Yogyakarta and Central Java where many households already have access to the subsidized 3 Kg LPG. However, there are a significant number of households outside of Java who still use three stone fire and traditional stoves to cook that have limited access to the subsidized 3 Kg LPG. With the government’s upcoming plans to only provide the subsidized 3 Kg LPG to selected poor households in Indonesia, Ditana sees that the program will be very useful not only in Yogyakarta and Central Java, but also outside of these two provinces where clean and fuel-efficient cookstoves are needed more.

 



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