Formulating a Long Term Strategy for Sustainable Palm Oil Biodiesel Development in Indonesia

Purwanto, Beny Adi; Hambali, Erliza; Arkeman, Yandra; Wijaya, Hendri

doi:10.5539/jsd.v9n4p124

Cited by 5 publications

(7 citation statements)

References 6 publications

(5 reference statements)

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“…In addition, Khatiwada et al research [14] shows that Indonesia's palm oil industry can develop nationally and internationally without expanding oil palm plantations since Indonesia can meet its domestic demand for CPO by 2025 by using about 63 percent of the area planted with oil palm in 2014. While research [5] shows that the development of sustainable biodiesel feedstock is the first key to sustainable biodiesel development in Indonesia.…”

Section: Presidential Instructionmentioning

confidence: 99%

“…Previous research shows that Indonesia's policy of supporting the use of renewable energy through the mandatory use of biodiesel as a mixture for diesel fuel has a significant impact on increasing the use of biodiesel, even though this target has not yet reached 100 percent [4]. In addition, Purwanto et al [5] shows that developing sustainable biodiesel raw materials is the first key to sustainable biodiesel in Indonesia, where the criteria for environmentally friendly raw materials are socially acceptable and economically viable. Therefore, the government should secure the supply of CPO as feedstock for biodiesel by providing sustainable oil palm plantations exclusive to biodiesel.…”

Section: Introductionmentioning

confidence: 99%

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Development prospects of Indonesia's biodiesel industry: A study of raw material, market, and policy aspects

et al. 2023

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Biodiesel is a fuel substitute for diesel which is considered more environmentally friendly because the raw materials used come from a mixture of palm vegetable oil, increasing production. The emergence of black palm oil campaigns in several importing countries has encouraged the urgency of biodiesel development in Indonesia. This study aims to; photograph the development of the Indonesian biodiesel industry and describe the development prospects of the Indonesian biodiesel industry in terms of raw materials, markets and policies. This research method uses descriptive analysis to examine the chances of developing the Indonesian biodiesel industry regarding raw materials, markets, and policies. The results showed that; the development of the Indonesian biodiesel industry continues to increase when viewed from the aspects of increasingly large raw materials, promising markets, and policies. It will continue to be studied and updated by the Indonesian government, so it is hoped that this biodiesel can significantly replace imported diesel and absorb Indonesian palm oil. The biodiesel industry in Indonesia has an extensive prospect to continue after implementing the B-30, which was first implemented in 2020. It can be achieved by paying attention to the available raw materials used in the biodiesel industry.

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Section: Presidential Instructionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Development prospects of Indonesia's biodiesel industry: A study of raw material, market, and policy aspects

et al. 2023

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“…The potential of biodiesel is as a substitute for diesel fuel because of its similar characteristics. In addition, biodiesel is a renewable fuel, easy to process, safe for the environment and biodegradable [1] [2].…”

Section: Introductionmentioning

confidence: 99%

Vulnerability and Capability Factors for the Indonesian Biodiesel Supply Chain Resilience

Agustina

Vanany

Siswanto

2023

IOP Conf. Ser.: Earth Environ. Sci.

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Biodiesel is one of the biofuels identified as a complement to conventional fuels. Socially and environmentally, biodiesel has been known to provide benefits for creating new jobs, revitalizing rural areas, and reducing global warming. However, the biodiesel industry often faces various challenges, one of which is uncertainty in decision-making. Uncertainty in the supply chain is considered as one of the greatest challenges to managing and controlling the supply chain. Other types of uncertainty are associated with events that decision-makers cannot predict or control, such as natural disasters, accidents, or artificial disasters. Supply chain complexity and global competition have increased their exposure to disruption. Therefore, reacting appropriately to disruptions is necessary for business continuity. Ultimately, resilience capabilities must be developed to help companies become more resilient than before. This paper identifies and determines the vulnerability and capability factors in the Indonesian biodiesel supply chain. The result shows several vulnerability factors, such as turbulence (price, technological failure, and pandemic), external pressures (policy and regulation), and resource limits (supply, capacity, and land availability), that may affect the resilience of the biodiesel supply chain. Meanwhile, capability factors that can be utilized to reduce these vulnerabilities are flexibility in sourcing, flexibility in order fulfilment, capacity, adaptability, visibility, and collaboration. The practical implications are also described in this paper.

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“…The attempts to improve the biodiesel implementation also included in-depth analysis regarding network of actors in biodiesel business. For example, Purwanto et al [6] proposed a long-term strategy for sustainable biodiesel development in Indonesia based on the SWOT-analysis and Multi Actor Approach. According to the study, GoI has to secure palm oil for biodiesel production, enhance sustainability of palm oil plantation, and improve collaboration with other stakeholders.…”

Section: Introductionmentioning

confidence: 99%

Analysis of Palm-Oil-Based Biodiesel in Indonesia using Technological Innovation System Approach

Naimah

Morgunova

2018

E3S Web Conf.

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Biodiesel blending mandate has been established in Indonesia since 2006. After 11 years of implementation, the level of biodiesel penetration on the market is still lower than the target. Technological Innovation System (TIS) approach allows to map factors that influence, either hinder or boost, the diffusion of biodiesel technology. The challenges that should be addressed are tax regulation; price fluctuation due to Crude Palm Oil (CPO) and fossil fuel price; lack of awareness from the society; inconsistency of policy; vulnerable financial funding from palm oil tax levy; lack of sustainability indicators for palm oil; and policy objection regarding palm oil tax levy. We suggest that an agreement, which contains commitment and willingness from all actors involved, should be created to reduce uncertainty towards implementation of biodiesel. Government should not only put incentive to the emerging technology but also reduce competition within the incumbent energy system to increase and stabilize biodiesel demand. Another way to increase biodiesel demand would be to raise awareness about negative consequences of increasing fossil fuel consumption and the benefits of biodiesel for the society.

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Formulating a Long Term Strategy for Sustainable Palm Oil Biodiesel Development in Indonesia

Cited by 5 publications

References 6 publications

Development prospects of Indonesia's biodiesel industry: A study of raw material, market, and policy aspects

Development prospects of Indonesia's biodiesel industry: A study of raw material, market, and policy aspects

Vulnerability and Capability Factors for the Indonesian Biodiesel Supply Chain Resilience

Analysis of Palm-Oil-Based Biodiesel in Indonesia using Technological Innovation System Approach

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