implementation of these regulations, there is still no biodiesel use by non- transport sector like industry and power plant.
According to the contextual condition above, each of contextual factors will be analyze to determine the driving forces of each contextual factor. The
detail contextual factors and driving forces provide in table 6 and table 7 below.
Table 7 Contextual factors of sustainable biodiesel development
No. Contextual Factors
1 Biodiesel production
2 Biodiesel demand on fuel
3 Biodiesel demand on industry and power plant
4 Export Biodiesel
5 Supply of CPO
6 Price of CPO
7 Price of Biodiesel
8 Price of Petroleum
9 Supply of other biodiesel raw material
10 Government incentive
11 Government Subsidy
12 Demand of CPO in food product
13 Profitability of Biodiesel
14 Profitability of Food product
15 Technology development in biodiesel production
16 Technology development in Biodiesel Usage
17 Technology development in CPO usage
18 Technology development in other renewable energy
19 Biodiesel CPO Tax policy
20 Biodiesel Standardization
21 Biodiesel distribution infrastructure
22 Biodiesel blending facility
23 Customer acceptance
24 Environment issue
Table 8
Driving forces of the contextual factors
No. Driving forces Contextual Factors
A Government Policy
Biodiesel demand on fuel Biodiesel demand on industry and power plant
Price of Biodiesel Government incentive
Government Subsidy Biodiesel CPO Tax policy
Biodiesel Standardization
B Technology Development
Technology development in biodiesel production Technology development in Biodiesel Usage
Technology development in CPO usage Technology development in other renewable energy
Environment issue Customer acceptance
C Raw Material Supply
Supply of CPO Price of CPO
Supply of other biodiesel raw material D
Infrastructure
Biodiesel distribution infrastructure Biodiesel blending facility
E International Factors
Biodiesel production Export Biodiesel
Price of Petroleum F
Economic Feasibility
Demand of CPO in food product Profitability of Biodiesel
Profitability of Food product The driving factors of biodiesel development in Indonesia are government
policies, technology development, raw material supply, infrastructure, international factors and economic feasibility. In recent condition, government
policies and raw material supply is the main driving forces. In the future, technology development and economic feasibility can be the main driving forces
4.3. Long Term Strategy of Biodiesel Development
From 2006 until 2015, biodiesel program has developed to supply the domestic market and global market. The focus of formulated strategy is on the
domestic market. Government has targeted to use 20 biodiesel blending in 2016. SWOT analysis will provide the current position of the biodiesel program
implementation and then draw the strategy to sustain the development of biodiesel program.
Table 9
SWOT synthesis of biodiesel development in Indonesia
STRENGTH WEAKNESS
Some large scale biodiesel industries have strong support in technology
research Biodiesel is less profitable than
other product Government has fully support on the
biofuels program and Indonesia has a lot of raw material of biodiesel
The coordination among the government institution is not well
organized. The investor trust in biodiesel program is low.
In this new government, biofuels development is one of the main
programs. Biodiesel pricing from industry to
pertamina is under renegotiation as the drop of petroleum price.
Biodiesel blending facility has been built in many area especially east
Indonesia. Biodiesel product from industry
has poor quality control. The biodiesel industry has adequate
supply to meet the target. Limited biodiesel distribution
OPPORTUNITY THREAT
Domestic biodiesel demand increased and research in biodiesel industry
Environmental issues around biodiesel as palm oil product.
Transportation, Industry, and power plant sectors are large market of palm
oil biodiesel. Increasing demand on palm oil
food product could decrease CPO supply for biodiesel
In the beginning of new government, the policy will execute in the long
term. Public acceptance of B20 20
Biodiesel mixture is an issue of biodiesel.
Petroleum fuel is very depend on the international supply and price, while
biodiesel is made and processed in Indonesia
Tax policy is also problem for small medium biodiesel company
On the long term strategy, the government should focus on the strength of biodiesel program to get the opportunity. The strength of this program is
stakeholders support and adequate source of biodiesel raw material. In Indonesia, Government is the main actor of the Biodiesel Development, so the long term
strategy that should be taken by government in support the research in development of new raw material and the development of biodiesel technology,
for both in the production technology and also usage technology in vehicle, industrial machinery and power plant.
The implementation of the long term strategy depends on the interaction among stakeholders. According to Caroko et al. 2011, there are 9 key
stakeholders in biodiesel development according to the interest and motivation but in this research we focus on specific biodiesel stakeholder without the
stakeholder of CPO Crude palm oil.
a. Recent Stakeholders Interactions b. Improved Stakeholders Interactions
Figure 7 Biodiesel stakeholders interactions From the figure 7, the current interaction of biodiesel stakeholders is only
dominated by government. The bold arrow shows a high influence on the biodiesel program. The government has high influence to Pertamina in case of
biodiesel blending. Same condition is happening from Pertamina to the industry. The influence of Pertamina to the biodiesel industry is very high because
Pertamina is the only buyer of biodiesel in Indonesia. The government develops the biodiesel development policy with their own knowledge. The academics
influence to the government is low, their opinions on the biodiesel development is neglected by the government.
In order to implement the long term strategy in development of new raw material and the development of biodiesel technology for both in the production
technology and also usage technology in vehicle, industrial machinery and power plant, the interactions among the biodiesel stakeholders should be improved. On
the figure 3b, the academics have a strong influence to the government and the industry. The academics should become the leader in technology development,
and then the government made the policy according to the stage of technology development. The industry will get the production technology from the
academics that influenced their company.
Academics Government
Industry
PERTAMINA
Association Academics
Government Industry
PERTAMINA
Association
