Abstract

The development of biodiesel agroindustry in Indonesia is part of the Government's efforts to achieve national energy security. This study tries to form relevant dimensions and indicators of energy security, which can be used in the context of biodiesel agroindustry. It identified 4 dimensions and 12 indicators of energy security in the context of biodiesel agroindustry, which consisted of availability as measured by energy supply per capita, reserve to consumption ratio and energy diversity; accessibility as measured by feedstock absorption, consumption to production ratio and energy elasticity; affordability as measured by pricing, price volatility and cost of subsidy; efficiency and sustainability as measured by land utilization, CO2 emissions reduction and energy intensity. Based on the energy security index, it is known that the level of national energy security in the context of biodiesel agroindustry over the past 4 years has experienced an increasing trend.Keywords: energy security, agroindustry, biodieselJEL Classifications: Q41, Q42, Q43DOI: https://doi.org/10.32479/ijeep.8255

Highlights

  • Indonesia has long been known as an agricultural country with various types of vegetable oil plants, of which, are very suitable to support the development of biofuel

  • The utilization of biodiesel is a form of energy diversification to reduce dependence on fuel oil and to achieve national energy security, which is a vital component of economic development and national security

  • The step we took was to screen the energy security indicators that are in accordance with the biodiesel agroindustry context

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Summary

Introduction

Indonesia has long been known as an agricultural country with various types of vegetable oil plants, of which, are very suitable to support the development of biofuel. There are no standard dimensions and indicators to measure the level of energy security because energy security is a concept that is very bound to context. These two contradictory facts certainly raise questions. Energy diversification through the development of biodiesel agroindustry is one of the efforts made by the Government to achieve national energy security. On the other hand, there is no standard indicator to measure the level of national energy security in the context of biodiesel agroindustry. Based on the situational analysis, this study will identify relevant dimensions and indicators of energy security which can be used in the context of palm oil-based biodiesel agroindustry

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