Statement of the Problem

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.