One of government action was increase the biodiesel mandatory blending of 5 to 10. In the implementation, the domestic usage of biodiesel is always below
the target. From the 2009 until 2013, the realization is far away from the target.
1.2. Statement of the Problem
Indonesia has a specific supply chain of petroleum products where almost all of the gas stations get the petroleum fuel from Pertamina, one of national state
owned companies in oil and gas supply. So, Pertamina is the one user of biodiesel. The government was confident to set up target with 10 biodiesel
usage in overall petroleum usage. In the implementation of this program, many problems have occurred at every stage of the biodiesel production from
plantation, CPO factory, Biodiesel factory, biodiesel blending and distribution. Lack of coordination among the stakeholders Government, Industry, and
Researcher has led to the inefficiency of the biodiesel development policies. The problems in biodiesel development were caused by government failure to
identify the role of each stakeholder in the biodiesel program.
Right now, the gap of biodiesel usage target and realization still exist. The government sees the problem is just the matter of time. Pertamina need a time to
build some new blending facilities in their distribution center all over Indonesia. The supply of CPO, as biodiesel raw material, is over the demand. On the figure
3, the export of CPO is increasing, same condition with domestic consumption in food use and feed waste. CPO consumption in biodiesel included in industrial
domestic consumption.
The government of Indonesia has targeted to use 30 biodiesel blending in 2025. The actual of biodiesel consumption is below the target. The problem and
obstacles in underperforming of the biodiesel policy should be identified and analyzed to produce the solution.
1.3. Background and Need
Wirawan and Tambunan 2006 Explained that the aims of the biofuel development were to improve energy security, boost economic growth, create
employment and reduce poverty in rural areas. This objective has the similarity with other developing country in South East Asia like Malaysia, Thailand and
Philippine. The main objective of biofuel development policy was to reduce the dependence on oil import and socio-economic concern, such as to increase the
employment and income generating opportunities in the rural areas. Climate change is currently not the primary motive of these countries to pursue biofuel
development policies Kumar, Shrestha, Salam, 2013.
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
emphasized that Failure to attend to the information and concerns of stakeholders clearly is a kind of 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..
According to Hall, Daneke, Lenox, 2010 the connection between sustainable development and entrepreneurship is depend on many factor like
business sector, industry structure and the dynamics of its interplay, and also depend on trade off among competing economic, social and environmental. As
the biodiesel sustainable development in Indonesia, it is to lay on the sustainable development on the entrepreneur responsibility. Right now, the biodiesel
business is not profitable economically. The biodiesel development is government initiative to increase the value added of palm oil product and reduce
the dependency to petroleum import Daryanto, 2010. In the result, the government is the main driver of sustainable development of biodiesel in
Indonesia.
1.4. Purpose of the Study
The purpose of this study is to formulate a long term strategy for sustainable biodiesel development among biodiesel stakeholders in Indonesia
and provide recommendations to the government for the implementation of the policy of biodiesel development.
1.5. Research Questions RQ’s
This study has several research questions to be answered, as follows: 1. What are the obstacles preventing the implementation of effective biodiesel
policy in Indonesia? 2. What are the factors that drive the palm oil biodiesel development in
Indonesia? 3. What long term strategy is required to sustain the biodiesel development in
Indonesia?
1.6. Significance to the Field
This research will give an understanding of the how a long term strategy in biodiesel development in Indonesia should be formulated. In the broader view,
other sectors could implement the same methodology to develop the development strategy. The latest research on the biodiesel policies in Indonesia
was conducted in 2011Caroko et al. 2011, they provide the key stakeholders with motivation and interest in the biodiesel development. Adding this updated
data will generate the latest stakeholders’ analysis of the biodiesel program. In the past, this form of stakeholder analysis was conducted in health
coverage policies. And then many application of stakeholder analysis started to be used in other sectors like transportation policies, energy policies, and also
infrastructure policies. The application of stakeholder analysis in renewable energy policies will provide a new application in a different sector. The
renewable policy is always including many actors, like government, industry, industrial experts, academics, researcher, and other parties. The stakeholder
analysis will provide design and recommendation to the government to formulate the renewable energy policy. The problem, solutions, interest, power, motivation,
and relationship among stakeholders will be identified to produce an effective renewable energy policy.
