The project area consists of the rural districts of Cepogo, Selo and Ampel in the region of Boyolali in the province of Central Java. It lies on the eastern slopes of the Merbabu (3142 m) and Merapi (2911 m) volcanos of which the latter is still active, and extends over the pass at Selo (1500 m above sea-level) to the villages of Tlogolele and Klakah. The biogas project area of about 100 kmē is densely populated by 70,000 inhabitants carrying out intensive agriculture (the total project area is approximately twice as big). The main crops are tobacco, vegetables and cloves as cash crops, cassava for home consumption and grass as fodder for stabled cattle. Bananas and coffee are also common; crops are grown corresponding to the altitude. Rice, the staple food, is bought or obtained from fields in the plains.
The villages consisting of several hamlets, stretch along the roads which are asphalted in some cases and which follow deep valleys dissecting the countryside. The steep slopes are at risk from erosion. The climate, corresponding to its position on 7° south latitude, is tropical but at altitudes of between 500 and 1,500 m very pleasant (10 - 30 °C). Dry and rainy seasons are not so extreme which means that agriculture can extend over the whole year and provide up to three harvests on the fertile volcanic soils. Each farm has between 0.5 and 2 hectares and 89% of farmers have less than 1 hectare of land. With almost 2 cows per household, this is the peak region throughout Indonesia. The annual income of the farmer amounts to between 130,000 and 210,000 IRP (64 - 103 US$ p.a.).
The population is predominantly Javanese, mostly belonging to the Muslim faith. Christians and members of traditional religions only form a minority. Social differences are less severe due to traditional patronage of richer farmers.
The greatest problem evident in Java is the dense population (813 inhabitants per kmē with a growth rate of 1.8%). The state is attempting to motivate the population with migration programmes to move to other, less densely populated islands (Kalimantan, Sulawesi, Sumatra and other small islands).
Goods needed on a daily basis are mainly produced in Indonesia although the electronics, mashinery and vehicle markets are still dominated by foreign goods. The project region itself is only slowly beginning with industrialisation from the plain. Agriculture will continue to constitute the main economic factor for a long time. Livestock husbandry and verification of agriculture are being strongly supported by promotion programmes and propaganda. An insidious tobacco disease in the soil and the fall of prices due to market losses necessitates new orientation of the farmers towards other cash crops or towards the production of meat and dairy goods.
On principle, farmers have access to agricultural investment credits and use their land as security for these. The price of rice is guaranteed for the farmers, there are fixed consumer prices for milk in the towns. Stabling and the use of organic fertiliser is promoted publicly and is traditionally common. So far, chemical fertilisers have been subsidised but this is slowly being abolished.