Background: This study objective to create a business model for the development of renewable energy based on bamboo forest biomass for underdeveloped and remote islands in Indonesia. Electrical energy has a vital and strategic role, to support national development and must be realized reliably, safely, equitably and environmentally friendly. Many problems occur in the management of the national electricity system, including dependence on the supply of fossil-fuel primary energy sources, as well as Indonesia's geographical condition which consists of many islands making it difficult to process the transmission and distribution of electrical energy. Electricity generation from renewable energy sources based on bamboo forest biomass can be a solution to the above problems. The research questions to (1) analyze what factors will influence uncertainty in the development of renewable energy based on bamboo forest biomass; (2) analyze the indicators of the success of the development of renewable energy based on sustainable bamboo forest biomass. (3) designing a business model for the development of renewable energy based on bamboo forest biomass in rural areas that can guarantee sustainable regional growth.
Methods: The study uses soft systems methodology techniques in the form of case studies supported by field surveys and literature studies. Qualitative analysis was carried out with a Focus Group Discussion and in-depth interviews with experts aimed at identifying indicators of success in developing sustainable renewable energy. The analysis technique uses two analytical methods, Strategic Assumption Surfacing and Testing (SAST) and Interpretative Structural Modeling (ISM). The location of the study was conducted in three villages in Siberut Island, Mentawai Islands Regency, West Sumatra
Conclusions: There were numbers of key elements in designing a business model for the development of renewable energy based on bamboo forest biomass, namely electricity subsidy rates, community forest land status, donor agencies, village community participation, income distribution and cooperative partnership of bamboo farmers. Business model that was designed in this study requires five things, specifically; (1) Clustering, (2) High tariffs, (3) Non-commercial funding, (4) Community Forestry, and (5) Community Empowerment.