CHAPTER I INTRODUCTION
Background of the Research
Energy consumption in Indonesia increases rapidly in line with economic and population growth. Currently, Indonesia is very much dependent on fossil fuel
for its energy sources and the non fossil alternative renewable energy has not been utilized optimally. Data of fossil energy reserves from the Department of Energy
and Mineral Resources [1] shows that the proven reserve of oil is about 9 billion barrels and with an average production rate of 500 million barrels per year, the
reserve will be exhausted in 18 years. Around 63 of Indonesia’s final energy demand is still depending on oil most of them are used in the transportation
sector. On the other hand, the national oil production facilities are limited and the capacity is decreasing gradually. Therefore, to satisfy the domestic energy
consumption, Indonesia has to import crude oil and finished petroleum products, such as gasoline and diesel fuel. Indonesia has become very dependent on
overseas oil supply to fulfill the increasing demand. This situation may worsen the security of fuel supply. The increase of the international crude oil and fuel price
has become a burden to the state budget, due to the subsidizing policy of fuel products. For example, when the crude oil price stays at around US125 per
barrel, Indonesia has to provide around 240 trillion rupiahs just for fuel subsidy. This will result in reduced government capacity to finance development programs
in needed sectors such as health, education, basic human services, and infrastructures either in rural or in urban areas. This means that the government
has very limited resources to stimulate and maintain productivity and economic growth.
In addition, the air pollution level especially in big cities like Jakarta is increasing and is becoming a serious problem [2, 3]. Ambient air quality
monitoring results suggest that NO
x
, CO and THC are a serious problem in almost all areas of Jakarta. PM
10
may be considered as a problem in certain areas and motor vehicles are a major contributor of NO
x
, PM
10
, CO and THC emission more than
2 70 of each parameter [4]. One of the main contributors of the increases of air
pollution is transportation. The use of energy in this sector has an environmental impact in the form SO
2
, NO
x
, CO, HC and PM. Each type of vehicle has a specific impact and different emission coefficients.
To reduce the high dependency on oil and to improve the air quality level, there is no choice but to maximize the development of utilization on
environmental friendly alternative fuel. One alternative is to convert plant oil to methyl esters or famously called biodiesel.
The business of biodiesel in Indonesia is expected to grow as the government intends to boost the biofuel program since the new National Energy Policy has been
issued in 2006 [5]. The policy has stated that biofuels are parts of renewable energy sources beside other types of sources such as geothermal, biomass, biogas,
wind, river flow, etc. The targets in this policy may include the role of each renewable energy sources in the energy consumption for optimum primary energy
mix. In the latter, the role of biofuels is set for more than 5 in the national energy consumption by the year 2025. This policy has been reinforced by the
issuance of the President Instruction concerning the regulation biodiesel utilization [6], the National Biodiesel Standard SNI 04-7182-2006 [7], the Decree
of the Oil and Gas Directorate General on Biodiesel Blending regulations that allows maximum blending of 10 [8], and the Decree of the Minister of Energy
and Mineral Resources on mandatory of biofuel utilization issued on September 2008 [9].
Although the biodiesel development in Indonesia started ten years ago, it has gained a significant milestone in 2006, when PERTAMINA as a state-owned
company which carries out business in oil gas, LNG, energy and petrochemical industries has been selling a blend of 95 diesel fuel and 5 SNI standard
biodiesel B5 which has the trade name of BIOSOLAR since 20 May 2006. To date, PERTAMINA has been selling BIOSOLAR at almost all fuel outlets on the
island of Java and Bali. Following the policy of biofuel mandatory utilization arranging phases and by the continuously growing of domestic biodiesel producer,
PERTAMINA will open the BIOSOLAR’s fuel outlets in all parts of Indonesia and increase the biodiesel blending content at least up to B20 in 2025. The main
3 current problem in commercialization of biodiesel in Indonesia is the fluctuation
of biodiesel price which usually gets higher than fossil diesel oil price, whereas biodiesel is still classified as other fuels which is not subsidized by the
government, on the other hand the advantages of biodiesel as an environmentally friendly renewable energy is still less considered. A review of the current status
and prospects of biodiesel development in Indonesia has been reported by Wirawan and Tambunan, 2006 [10] .
The reduction of the pollutants emission could have direct implication on the improvement of the air quality in the atmosphere to the impacts on various
receptors, including the human beings and those impacts could be transferred into monetary values. In the environmental economic science, environmental impact is
known as one form of the loss of externalities which could effect the national effective source allocation and needs the government policy to overcome the
problem. Externalities are changes of welfare which are caused by economic activities without being reflected in market price. Applied on transport, negative
externalities are costs imposed on society and environment that are not accounted for by the producers and consumers of transport services [11]. Hence, it is
necessary to estimate the contribution in external costs in transportation energy sector use due its impact on air pollution to human health.
Objective of the Research
The main objective of this research is: 1. To study the effect of biodiesel fuel in pollutant emission from diesel engine
in transportation sector. 2. To perform the external cost analysis in relation to environmental quality and
health improvement as affected by biodiesel utilization in transportation sector by using the model simulation.
The analysis is performed to Jakarta as the case study.
4
Benefits of the Research
This research would specify the following benefits: a. Provision of scientific proof of the advantages of biodiesel utilization on
environmental improvement health impacts and economic values. b. The result could be used as a scientific reference in policy and regulation
decision by the government subsidy, incentive andor disincentive policy.
Boundaries and Methodology Boundaries
The boundaries of the study can be specified into geographical area, targeted pollutant, time frame and data sources as explained below.
a. Study Area The study area focuses on the area which comprises the Special District of
the capital city of Jakarta which is known as Daerah Khusus Ibukota Jakarta DKI Jakarta, including North Jakarta, East Jakarta, South Jakarta, West Jakarta and
Central Jakarta. Jakarta was selected as a targeted research location due to the fact that Jakarta is the capital city with the most densest population, highest mineral
diesel fuel consummer, and most polluted city compared to among others big cities in Indonesia. Seribu islands and sea area are assumed as areas outside
Jakarta and were not included in this study. Jakarta is used through-out this report as the terminology for the study area of DKI Jakarta.
b. Targeted Pollutants The targeted pollutants in the study are nitrogen oxides NO
x
, sulfur dioxide SO
2
, Particulate Matters PM, carbon monoxide CO, and hydrocarbons HC from transportation sector vehicle sources fueled with pure
mineral diesel fuel case base case and biodiesel blends with diesel fuel case B10, B20, B50 and B100. Industrial and domestic sector sources and other
mobile sources such as ships, aircraft and other sources are not estimated in this study.
c. Data Sources Efforts focused on collecting all previous studies and reliable secondary data
on air quality model for the traffic sector and air pollution levels in Jakarta for the
5 period of 1992 to the latest year available. The following are comprehensive
studies that focused solely on air quality model for the traffic sector and Jakarta’s air pollution situation and formed part of this study’s background:
• Air Quality Model for the Traffic Sector, Environmental Impacts of Energy Strategies, Indonesian German Research Project [12].
• Study on Air Quality in Jakarta, Indonesia [4]. d. Time Frame
The study’s time frame was set as follows: • The vehicle emission loads without countermeasures or baseline cases were
estimated for year 2005 and predicted for the shortmedium term 2010 and 2015, and long term 2020 and 2025. The vehicle emission loads with
countermeasure biodiesel blends with petrodiesel, B10 and B20 case were predicted for both the shortmedium term 2010 and 2015 and long term
2020 and 2025. B50 and B100 cases were also estimated in this study in order to evaluate the conservative contribution of biodiesel utilization in the
transportation sector to the overall pollution in Jakarta. • The health and economic impacts of air pollution were estimated based on the
results of simulation as above scenarios. Figure 1 shows the logical frame of the research.
- 6 -
Background
•
63 of energy demand depend on fossil oil
•
Reserved oil is limited
•
40 of diesel oil consumption are imported
•
Increases of international crude oil prices
•
Air quality of major cities in Indonesia has been deteriorating especially in the
city of Jakarta
•
Abundant Biofuel Raw Material
National Biofuel Program
Bioethanol, Biodiesel
and Bio-oil
RD Support
•
Effect biodiesel to engine performance
•
Effect biodiesel to emission
•
Optimum blending
•
Advantages and disadvantages of biodiesel
•
Others
Existing condition
•
Perpres No. 52006
•
Inpres No. 12006
•
SNI 04-7182-2006
•
Decree No. 3675K24DJM2006 max. B10
•
Decree No. 322008 Biofuel Mandatory
•
Pertamina formally sale BIOSOLAR
•
Plant Installed capacity 2.5 million Kl
Influence Factors
•
World oil price
•
CPO oil price
•
Chemical price methanol, catalyst
•
Global policy technical and environmental aspect
•
Government policy on biofuel price, tax, incentive, etc
•
Tecnology capability on and off farm
Commercialization Problems
•
Biodiesel still classified as other fuel economical price, no subsidy.
•
FAME price is tend to increase and passing the MOPS price.
•
Consumer still dominantly considered the fuel price to decide
to use for their car fuel.
•
The advantages of biodiesel renewable energy, lower exhaust
gas emission, effect to engine life time is just putted aside.
Diesel Oil Sample B0
•
From Pertamina balongan B01
•
From Public Fuel Pump Station B02
Meet Pertamina’s diesel oil standard
Biodiesel Production Engineering Center – BPPT
Meet SNI 04-7182-2006
BXX samples
•
B0
•
B10
•
B20
•
B30
•
B50
•
B100
Lab Test Performance:
Torque, power, Fuel
ConsumptionEmis sion: SO2, NOx,
HC, CO, PM
Optimum Blending Assessment
•
Lab test result
•
Literarure study
•
Experts interview
•
Short term engine effect
•
Long term engine effect
•
Price
Biodiesel Blending Scenario
Recommendation
Scenarios
•
Time frame: 2005, 2010, 2015, 2020, 2025
•
Base case B0
•
BXX
Socio Economy Data
•
Population growth
•
Economic growth
•
Historical data
Vehicle Growth Model
•
By type of vehicle
•
By type of fuel
Emission Coefficient
•
By type of emission
•
By type of vehicle
Emission Quantification Meteorological data
•
Wind speed
Emission Dispersion MLuS Model
•
For Jakarta
•
1 x 1 km square grids
•
By type of emission
•
Fading model
Dose response Health cost
•
Germany health cost
•
GDPPPP Indonesia and Germany
•
Indonesian health cost
External Cost Calculation The Effect of
Biodiesel to
External Cost
Background of the Research Model Simulation
Research Output
The Effect of Biodiesel to:
•
Pollutant Emission
•
Pollutant Dispersion
Chapter 1 Chapter 4
Kategori