Palm oil-based biofuels and sustainability In Indonesia: assess social, environmental and economic aspects

Abstract

Palm oil as an agricultural commodity plays an important role in the development of the Indonesian economy, considering it in producing vegetable oil. Policies for developing new and renewable energy in Indonesia aims to encourage the optimization of the use of biofuels from oil palm. This policy still raises pros and cons, so that analysis needs to be carried out through an environmental science perspective. This study aims to assess the sustainability of palm oil (CPO) as a basic material for making biodiesel from environmental, social, and economic aspects, as well as to provide recommendations on a sustainable palm oil biodiesel policy strategy. The method used is a qualitative analysis. Descriptive analysis of supporting literature is used to assess environmental, social, and economic aspects of palm oil-based biodiesel sustainability in Indonesia. The use of biodiesel in the country is expected to be sustainable in line with the stipulation of the mandatory biodiesel of 30 percent (B30) in 2019 by the Government as a substitute for fuel mixture. It was found that there are advantages to using palm oil-based biodiesel compared to other vegetable oils. Palm oil-based biodiesel can be produced in a sustainable manner.