Abstract
<p class="abstract-1"><strong></strong>Indonesia, the largest producer of palm oil, has been developed palm oil biodiesel as renewable energy in the last decade. Indonesia biodiesel development policies aim to increase domestic value added of palm oil product and reduce the reliance on fossil fuel. Indonesia has embarked on a comprehensive palm oil biodiesel program since 2006 and targeted the 20% biodiesel blend (B20) in 2016. This article explores the strategy formulation by accommodate the stakeholder perspective in the problems and the solutions. This research analyzes the information from in depth interview with biodiesel stakeholders (government, industry and researcher) in Indonesia by combine Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis with a Multi Actor Analysis approach. The results show the problems of biodiesel development are mainly on the high production cost due to high price of raw material, production technology and distribution infrastructure. The government policy, technology development and raw material supply are the driving forces of the biodiesel development in Indonesia. In the long term strategy, government of Indonesia should secure the biodiesel raw material, develop an environmental friendly technology in biodiesel processing, and accommodate any improvement idea from other stakeholders.</p>
Highlights
Since 2008, Indonesia is net importer of petroleu m
The results show the problems of biodiesel develop ment are mainly on the high production cost due to high price of raw material, production technology and distribution infrastructure
In 2014, the govern ment targeted to increase biodiesel mixing to 10% (B10) that was stated in M inister of Energy and Mineral Resources Regulation No: 20/ 2014
Summary
Since 2008, Indonesia is net importer of petroleu m. Vol 9, No 4; 2016 of Energy and Natural Resources, there are 26 biodiesel co mpanies with the total national capacity about 5.6 Million kilo litre/year. Those regulations successfully got the attention from the investor. The government regulated mandatory blending of b iodiesel, believ ing it will generate domestic demand for biodiesel that will encourage the growth of the b iod iesel industry. The government is try ing to reduce imports of diesel fuel by using biodiesel blends, wh ich Indonesia has a huge palm oil production as a raw material fo r biodiesel. One of government action was increase the biodiesel mandatory blending of 5% to 10%
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