Abstract
Biodiesel has been produced since 2006 in Indonesia and regulation of biodiesel blending has been set, but the actual blending rate was never reached the target. The research aims to increase biodiesel production to achieve mandatory target and reduce diesel oil import. It will project biodiesel production achieving demand in Indonesia until 2025 and proposes some strategies to increase blended biodiesel production by constructing system dynamics modeling. The research shows, there are 3 scenarios to increase biodiesel production; palm oil cultivation land, palm oil productivity and refined CPO shared. To meet blended biodiesel demand, cultivation land should be increased to 3.2-6.5% per year, productivity should be fixed to 12.54 ton/ha and refined CPO shared should be adjusted to 56.9-65.4%. This scenario also will reduce diesel oil import to 7.16–9.82 million kL per year. Refined CPO shared is the most influenced variable; therefore the government should consider to make refined CPO export limitation policy.Keywords: Blended Biodiesel Production; System Dynamics Modeling; Refined CPO ExportJEL Classification: ZDOI: https://doi.org/10.32479/ijeep.8319
Highlights
Increasing of energy needs, limitation of fossil-fuel-based energy resources, fluctuation of fossil fuel global price and environmental issue of greenhouse gases (GHG) emission have led management energy crises in Indonesia and forced the Government of Indonesia (GOI) to increase fossil fuel import and price
Many problems occurred regarding biodiesel utilization, such as feedstock limitation, Crude Palm Oil (CPO) is used as food and most of CPO production is being exported, biodiesel price is higher than diesel oil price and biodiesel distribution and mandatory has not spread in Indonesia’s regions and sectors
Projection of CPO Supply and Demand in Indonesia CPO Production and its related variables are a function of Fresh Fruit Bunch (FFB) production
Summary
Increasing of energy needs, limitation of fossil-fuel-based energy resources, fluctuation of fossil fuel global price and environmental issue of greenhouse gases (GHG) emission have led management energy crises in Indonesia and forced the Government of Indonesia (GOI) to increase fossil fuel import and price. Biodiesel is one of the alternative solutions in order to depress fossil fuel import and GHG emission, due to its similarity characteristics with diesel oil, sustainability proven and environmentally friendly (Musango et al, 2012). Many researchers have been observed how to increase biodiesel production through several methods, such as: Anderson et al (2013) and Musango et al (2012) were comparing and choosing the most efficient feedstock, Lin et al (2013) was analyzing the most suitable blending rate for biodiesel and diesel oil, Aransiola et al (2014) was using the most updated technology of biodiesel processing by comparing various technologies, Imtiaz et al (2015) was choosing the proper properties of biodiesel reactor in order to attain optimum result and Enciso et al (2016) was planning the right policies to support the development of biodiesel
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