The paper has been written for EAWAG in order to support their ongoing research and development project FORWARD with the aim to enhance the management of municipal organic solid waste (MOSW) in two medium-sized cities in Indonesia. Four possibilities to convert and valorise the organic fraction of MOSW have been suggested by EAWAG, namely producing char, compost, biogas and insect-protein from Black Solider Fly (BSF). This paper focus on the latter two methods, where the current market potential for biogas and insect-protein in the area of Sidoarjo has been assessed.

In a first step a focus on social, legal, economic and political aspects in Indonesia, in particular Sidoarjo, has been carried out in order to evaluate whether these aspects are favourable for a possible implementation of biogas and insect-protein. Secondly, the demand potential for the two products has been assessed by conducting interviews with representatives of the target groups from feed mills, aqua culture and bird keepers for insect-protein, respectively industries, potential partners and business models for biogas.

Although the feed mill industry demands the highest quantity of BSF larvae for all target groups, a significant minimum required supply and a low possible selling price present two potential entry barriers. In contrast, the local bird markets and aqua cultural farmers were identified as promising customers in the short run since no processing of BSF larvae is required. Moreover, possible fetching prices are significantly higher than in the case of feed mills. As far as biogas is concerned, big industries are not yet willing to use biogas as an energy source due to the fact that possible unstable supply implies risks on their production capacity. However, small to medium-sized industries and households were interested, preconditioned that no or only low initial investments have to be made from their side. Therefore, it is advisable to collaborate with governmental instances or other potential investors in order to provide financial support. Due to a subdued response from Sidoarjo regency’s governmental instances in approaching the solid waste problem, an extension of regency to more supportive local governments such as in Malang and Mojokerto is recommended.