Figure 1 Biodiesel development roadmap in 2006 Wirawan, Tambunan 2006 In 2014, the government targeted to increase biodiesel mixing to 10
B10 that was stated in Minister of Energy and Mineral Resources Regulation No: 202014. This regulation targeted to utilize the biodiesel in Transportation,
Industry and Power Plant sector.
Table 1 Mandatory biodiesel blending in regulation No. 202014
Sector Sep
2013 Jan
2014 Jan
2015 Jan
2016 Jan
2020 Jan
2025
Remark
Household -
- -
- -
- Not Regulated
Micro Industry, Fishery and agriculture industry,
Transportation PSO 10
10 10
20 30
30 From Total Usage
Transportation Non PSO 3
10 10
20 30
30 From Total Usage
Industrial and commercial 5
10 10
20 30
30 From Total Usage
Power Plant 7.5 20
25 30
30 30
From Total Usage
PSO : Public Service Obligation
Source: Minister of Energy and Mineral Resources
As the substitute of petroleum, the main advantage of using palm oil biodiesel is there is no direct negative effect on the engine. However, Jayed et al.
2011 has listed many engine problems using the palm oil biodiesel usage e.g. fuel injector coking, carbon deposit on piston, gum and wax formation and
corrosion on some high pressure parts. The government should develop a tight controlling regulation on the palm oil biodiesel quality standards.
One of the aims of biodiesel development is to reduce rural poverty. According to Manik, Leahy, and Halog 2013, exploitative labor relations,
alienation, and other negative impacts on the well-being of localtribal communities are the most noticeable social hotspots that prevent the
sustainability of palm oil biodiesel. The social effect of the palm oil biodiesel
development is far away from the target. The implementation of regulations that relate to the social development is questioned.
Palm oil biodiesel is facing the issue on food versus fuel. The main product of palm oil is Crude Palm Oil CPO. The Indonesia production capacity of CPO
is increasing figure 3. As the world’s largest edible oil consumed and one of the important feedstock for transport biofuels, future increases in global demand
will continue to push up demand for palm oil. Nonetheless, along with the rapidly increasing interest on palm oil use for transport fuels in recent years,
serious concern about the sustainability of palm oil production has also increased and has stirred up new debates Yean ZhiDong, 2012. As the increasing
demand of CPO in food product, biofuel, industry, and export market, the production capacity of CPO will reach a peak because of the limited palm oil
plantation in the future.
2.2. Policy Analysis in Multi Actors
In Indonesia, biodiesel development was conducted by government with the support from industry, academics, research center and palm oil grower. This
means the biodiesel development policy is multi actor policy. In this condition, every problem in the formulating and the implementation of the policy is become
complicated. Different actor has their own view on the problems and also on the solutions.
The model of policy analysis in multi actor organizes the stakeholder in the network rather than classic hierarchy. This means the desired solutions is
products of cooperation among the actors Enserink et al., 2010.
Figure 2 Model of policy analysis in multi-actors system Enserink et al., 2010
Problem Formulatio
n System
Analysis
Actors Analysis
Scenario Analysis
Solution Synthesis
Action Plan
The policy analysis in multi actors system starts with problem formulation. Every actor provides problem and solutions according their perspective. And
then the analysis divided into three methods:
2.2.1. System Analysis The system analysis provides conceptual framework of the system, the area
of research, and also identified the means, external factors and criteria. The steps in system analysis are problem demarcation, specify object and criteria, identify
the means and map the main causal, and the last is provide of the problem area using a system diagram.
2.2.2. Actor Analysis The objective of this research is providing a recommendation of long term
strategy in biodiesel development. The activity of the policy analysis in this research is design and recommendation by create an alternative of an option in
the strategy by mapping options and interests of different actors. One of the methods that focus on the resources and interdependencies among actor is
stakeholder analysis.
Identifying the problems of biodiesel could start by analyzing the role of the stakeholders. The stakeholder definitions depend on the interest, role, power
and impact. Knowing who the key actors are, their knowledge, interests, positions, alliances, and importance related to the policy allows policy makers
and managers to interact more effectively with key stakeholders and increase support for a given policy or program Schmeer, 1999. Furthermore, Bryson
2004 emphasize that failure to attend to the information and concerns of stakeholders clearly is a flaw in thinking or action that too often and too
predictably leads to poor performance, outright failure or even disaster. Understanding the stakeholder will provide a firm base to develop the strategy.
In case of biodiesel development in Indonesia, how far the government understands the issues and shows concerns for the stakeholder interest is
questionable. Caroko, Komarudin, Obidzinski, and Gunarso 2011 Provide an explanation that the blueprint of biodiesel development was developed with
limited involvement from stakeholders such as the business sector, non- governmental organizations and the scientific community. Stakeholder input was
sought only when the final draft was released. So, the government of Indonesia was unable to involve the key stakeholders in the biodiesel development and this
condition generated many problem and obstacles in the policy implementation.
In the beginning of Stakeholder Analysis, this approach was applied to health policy development in The Partnerships for Health Reform Schmeer,
1999 and then advanced development into general strategic management Bryson, 2004.
In case of palm oil biodiesel, Caroko et al. 2011 has identified the key stakeholder of palm oil biodiesel in Indonesia by analyzing and describing the
interest and motivation. The result is expressed in the table 2.
