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.
1.7. Limitation
This research has limitation on the data collected from interview. There are 5 participants consisting of one researcher, one industrial practitioner, one people
from government and two people from business. This data may not cover and represent all of the population which means it cannot be generalized for all palm
oil biodiesel industry. However, this research focuses more on the exploration of the development strategy of biodiesel. It is very important given the fact that
collaboration among the stakeholders is key factor in developing and implementing the strategy. Moreover, the action plan and policy design may
become the guidance for further development of sustainable biodiesel development
2 LITERATURE REVIEW
2.1. Biodiesel Development Policy
Biodiesel is made from biological resources such as vegetable oils or animal fats. The main compound of biodiesel is a methil ester compound.
Biodiesel can be made from the transesterification of fatty acids. Fatty acids, from vegetable oils, are mixed with fatty esters and alcohol to produce by
products such as glycerine. In the market, glycerine has a high economic value.
Biodiesel has been widely used as a substitute for diesel fuel. Biodiesel feedstock development depends on the natural resources of a nation, for example
canola oil in Germany and Austria, soybean oil in USA, palm oil in Malaysia and Indonesia, coconut oil in the Philippines Abdullah, Salamatinia, Mootabadi,
Bhatia, 2009.
The national team of biofuels provided a biodiesel development roadmap in 2006. They targeted to use 10 biodiesel from total consumption of
Automotive Diesel Oil ADO in 2006 – 2010 and then increased until 20 in
2016. The target of biodiesel usage from total usage is ambitious Caroko et al. 2011. Increasing mandatory blending is one of the policies to increase biodiesel
usage Handoko 2012, but the problems of palm oil biodiesel continue from the plantation until distribution. The government should provide a set of effective
regulation in the biodiesel supply chain Daryanto 2010.
