Abstract

Biodiesel is considered as one of the alternative eco-friendly fuels. Besides, the government also issued policy related to biodiesel that is CPO Supporting Fund (CSF) Policy. The aim of the research is to identify Business model canvas (BMC) biodiesel industry in PT XYZ and to know the strategies to develop business from biodiesel industry in line with the CPO supporting fund policy. The analysis tool used in this research is BMC, SWOT and Quantitative Strategic Planning Matrix (QSPM). The research results in identifying BMC of PT XYZ is customer segment that the company serves in the form of domestic as well international customers. The value the company offers is biodiesel quality that is in accordance with SNI standard and the distribution is at the company’s cost; the relationship built with the customers is by communities and co-creation; the marketing network through stock exchanges and commodity exchanges; the revenue obtained from selling biodiesel and the price difference between biodiesel and solar from BPDPKS; the company’s resources are human resource, raw material resource, and financial resource; the main activities carried out by the company is CPO process to become biodiesel and sale; the company’s partners are GAPKI, BPDPKS and APROBI; the cost structure is operational cost, workers’ salary, and CPO levy fund. Furthermore, the strategy to develop biodiesel industry in line with the rapid increase of competitiveness is to increase the biodiesel production capacity and communication improvement and CRM to improve customers’ service. Keywords: biodiesel, CPO supporting fund (CSF), levy fund, vegetable oil (BBN), business model canvas (BMC)

Highlights

  • Biodiesel is one the alternative eco-friendly fuels because it does not emit polutant that is dangerous for health

  • The value the company offers is biodiesel quality that is in accordance with SNI standard and the distribution is at the company’s cost; the relationship built with the customers is by communities and co-creation; the marketing network through stock exchanges and commodity exchanges; the revenue obtained from selling biodiesel and the price difference between biodiesel and solar from BPDPKS; the company’s resources are human resource, raw material resource, and financial resource; the main activities carried out by the company is CPO process to become biodiesel and sale; the company’s partners are GAPKI, BPDPKS and APROBI; the cost structure is operational cost, workers’ salary, and CPO levy fund

  • Business model canvas (BMC) elements that have been determined to be developed according to SWOT analysis are Customer Relationship and Cost Structure. Both elements need to be developed because they have substantial potential and weakness in biodiesel industry from the developed CPO in line with the implementation of CPO Supporting Fund policy (Table 3)

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Summary

Introduction

Biodiesel is one the alternative eco-friendly fuels because it does not emit polutant that is dangerous for health. The use of biodiesel as motor fuel can reduce emission compared to diesel oil. Biodiesel is made of vegetable oil coming from renewable sources. Some raw materials for making biodiesel, among others, palm oil, soybean, sunflowers, fenced jojoba, and canes (Rahayu, 2007). Biodiesel materials that have a good prospect and big chance to be processed to become biodiesel are palm oil. Compared to other vegetable oil producing trees, palm oil is the most efficient oil producing raw material (Masykur, 2013). Biodiesel that is processed into palm oil has several superiorities, namely safer from fire when it is kept and distributed, it is mixed with diesel, and it has high cetane and its availability is plenty in Indonesia (the Ministry of Republic of Indonesia, 2013). From the automotive viewpoint, biodiesel has more advantages, namely protecting the machine, increasing burning efficiency (Tety et al 2012)

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