Prospects for the Development of Green Gasoline and Green Diesel from Crude Palm Oil in Indonesia

Sugiyono, Agus; Fitriana, Ira; Budiman, Abdul Hamid; Nurrohim, Agus

doi:10.4028/www.scientific.net/msf.981.202

Cited by 8 publications

(5 citation statements)

References 2 publications

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“…Dependence on imports due to production, which only fulfills 50% of public consumption, is allegedly the cause of fuel price volatility. The Indonesian government strives to reduce fuel imports [19]. Meanwhile, fuel consumption is predicted to increase by 1.13% per year.…”

Section: Resultsmentioning

confidence: 99%

Observing the management of palm-oil gasoline development in Indonesia: alternative policy selection

Maninggar,

Firmansyah,

Pertiwi

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

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The creating of new renewable energy by converting fossil fuels into biofuels is a wise solution for reducing emissions. Palm-oil gasoline, relatively unknown alternative fuel for replacing gasoline, has begun to be produced in Indonesia. As the world’s largest Crude Palm Oil (CPO) producer, Indonesia has the potential to become a best practice for palm-oil gasoline development, particularly in terms of production management. There are three ways to manage palm-oil gasoline production i.e: integration of palm-oil gasoline factories with smallholder farms, co-processing, and a mixture of the two. This paper aims to assess the preparedness of the three alternatives and provide policy recommendations for the development of palm-oil gasoline in Indonesia. Data collection were conducted in 2022 through in-depth interviews and Focus Group Discussion with a variety of energy experts. The Analytical Hierarchy Process (AHP) approach was used to analyse the data, using 5 alternative selection criteria, including: governance, fuel oil import substitution, local content use, stakeholder acceptance of the project, and impact on community. As a result, impact on community criteria are the most considered factor in palm-oil gasoline production and the integration of palm-oil gasoline factories with smallholder farms is the optimum development option.

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Section: Resultsmentioning

confidence: 99%

Observing the management of palm-oil gasoline development in Indonesia: alternative policy selection

Maninggar,

Firmansyah,

Pertiwi

et al. 2023

IOP Conf. Ser.: Earth Environ. Sci.

View full text Add to dashboard Cite

show abstract

“…Recently, the government developed the B30 program as a domestic solution to offset declining CPO exports by absorbing excess supply through biodiesel production [60]. The program mandates 30% biodiesel content in diesel fuel [61], providing a sizable domestic market for CPO-based biodiesel.…”

Section: Literature Review 21 An Overview Of the Cpo-driven Biofuel I...mentioning

confidence: 99%

“…Ultimately, implementing the B30 program and instituting sustainability measures pave the optimal pathway for Indonesia's CPO industry to thrive in the global market while bolstering the national energy transition. Recently, the government developed the B30 program as a domestic solution to offset declining CPO exports by absorbing excess supply through biodiesel production [60]. The program mandates 30% biodiesel content in diesel fuel [61], providing a sizable domestic market for CPO-based biodiesel.…”

Section: Literature Review 21 An Overview Of the Cpo-driven Biofuel I...mentioning

confidence: 99%

Just Transition in Biofuel Development towards Low-Carbon Economy: Multi-Actor Perspectives on Policies and Practices in Indonesia

Djatmika,

Listiningrum,

Sumarno

et al. 2023

Energies

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Justice and sustainability are the foundation of fair and equitable biofuel development. Policies and practices are consequently necessary to support a just transition towards a low-carbon economy. Therefore, this study aimed to understand multi-actor perspectives on policies and practices relevant to the just transition in biofuel development. Applying a socio-legal approach based on the JUST framework, this study focused on the Indonesian biofuel industry, which is primarily driven by crude palm oil (CPO) production. This study also added comparative perspectives from Thailand’s biofuel industry. The primary data were gathered from in-depth interviews and focus group discussions (FGDs), while the secondary data were from research, policy, and other government archives. Based on the results, oil palm plantations in Indonesia and Thailand are crucial for macroeconomic development. However, smallholder farmers in Indonesia, especially independent ones that do not join farmer groups, remain marginalised by the current regulations. In fact, many benefits from biofuel practices and policies accumulate disproportionately towards large corporations, while marginalised groups bear the costs. The Indonesian Sustainable Palm Oil (ISPO) certification that should induce market accessibility and competitiveness has not fully reached most rural farmers. Furthermore, various overlapping regulations and perplexing data differences exist from multiple ministries and administrative levels. Thus, palm oil stakeholders in Indonesia demand a dedicated institution for integrated regulation and monitoring of the industry, similar to the National Palm Oil Policy Committee in Thailand. The myriad of legal, political, socio-economic, and justice issues thus necessitates all hands on deck to ensure a just transition for all stakeholders of the Indonesian biofuel industry.

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“…Indonesia is also actively engaged in the development of green fuels in various forms, including green diesel [36][37][38][39] , sustainable aviation fuels 40) , and green gasoline 38,41) . The production of these green fuels can capitalize on existing and under-construction refineries by utilizing the zeolite-based catalyst currently being developed by the Bandung Institute of Technology 42,43) .…”

Section: Biofuel Policiesmentioning

confidence: 99%

The Role of Oil Fuels on the Energy Transition toward Net Zero Emissions in Indonesia: A Policy Review

Soemanto,

Mohi,

Muhammad Indra al Irsyad

et al. 2023

Evergreen

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The vision of achieving Net Zero Emissions introduces a sense of uncertainty within the oil and gas industry. Several studies have reviewed the potential contributions of the oil and gas industry to the NZE vision. However, these studies have overlooked the intricate dynamics between the oil and gas sector and its counterparts, specifically the biofuel and electric vehicle industries. Our research seeks to fill this gap by conducting a thorough review of energy policies governing transportation sector energy provision with Indonesia as a case study. The initial phase of our analysis entails assessing the continued relevance of the current oil supply targets outlined in the National Energy General Plan considering prevailing conditions. In the second stage, we engaged in purposeful discussions with a diverse array of key stakeholders to gain a nuanced understanding of the intricate dynamics inherent in energy policies. We found a consistent decline in crude oil imports since 2016, culminating in actual oil imports in 2020 that were only 40% of the anticipated imports outlined in the RUEN targets. Production from the Cepu block surpassed expectations, leading to the actual oil production from 2016 to 2020 exceeding the targets outlined in the RUEN. Indonesia also has consistently redirected its emphasis on oil exports to contribute to economic development capital. The State-owned Oil and Gas Company acquired crude oil from 80% of the 43 contractors in 2020 and distributed it within domestic markets. The escalating domestic crude oil supply, stemming from heightened oil production and constraints on oil exports, underscores the imperative for additional oil refinery capacity. In addition, Indonesia has implemented programs to develop biofuels and electric vehicles. Implementing these measures is crucial for adapting to shifts in the energy landscape and ensuring the sustainability and security of the energy supply for the transportation sector.

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Prospects for the Development of Green Gasoline and Green Diesel from Crude Palm Oil in Indonesia

Cited by 8 publications

References 2 publications

Observing the management of palm-oil gasoline development in Indonesia: alternative policy selection

Observing the management of palm-oil gasoline development in Indonesia: alternative policy selection

Just Transition in Biofuel Development towards Low-Carbon Economy: Multi-Actor Perspectives on Policies and Practices in Indonesia

The Role of Oil Fuels on the Energy Transition toward Net Zero Emissions in Indonesia: A Policy Review

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