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

Abstract

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.