Comparison of Biofuel Development in Indonesia and Columbia

Dilema between markets, production capacity, and absorption

Authors

  • Ari Paminto Sekolah Ilmu Lingkungan, Universitas Indonesia
  • Raldi Hendrotoro Seputro Koestoer Sekolah Ilmu Lingkungan, Universitas Indonesia
  • Mahawan Karuniasa Sekolah Ilmu Lingkungan, Universitas Indonesia
  • Evi Frimawaty Sekolah Ilmu Lingkungan, Universitas Indonesia

DOI:

https://doi.org/10.21787/mp.6.1.2022.43-55

Keywords:

policies, biofuels, sugar, palm oil

Abstract

In recent years the world has experienced ups and downs in biofuel production, from an annual figure of 9.2 million tonnes in 2000 to 95.4 million tonnes in 2018.National policies are not made to stabilize the sugar and palm oil sectors, but to develop the industry. National BBN (Biofuel). The aim of this paper is to analyze biofuel development policies between Colombia and Indonesia in relation to the sugar and palm oil sectors. The method used is descriptive analysis by means of literature studies, data collection, and analysis of biofuel development policies in Indonesia and Colombia. The Colombian government provides incentive mechanisms to promote biofuel fuels, including a mandate for biofuel blending. The pricing policy is set by considering the opportunity cost of using alternative raw materials. Meanwhile in Indonesia, the mandatory biofuel policy is in order to reduce dependence on imported diesel oil in order to save the country’s foreign exchange. In Colombia, the adoption of a biofuel policy has allowed the creation of a market for ethanol and biodiesel which comes partly from the substitution of sugar production with ethanol production, and the dynamic interaction between palm oil and biodiesel production. In Indonesia, biodiesel production has not been optimal compared to its installed capacity due to political economy and price factors. The low absorption of biodiesel is an indirect obstacle to the sustainability of the national bioenergy program.

References

Agholor, A. I. (2021) ‘Examining biofuel sustainability as an alternative energy source and implication for food security in Sub-Saharan Africa.’, Journal of Critical Reviews.

Ahmed, J. O. (2020) ‘The effect of biofuel crops cultivation on food prices stability and food security-A Review.’, EurAsian Journal of BioSciences, 14(1).

Alizadeh, R. et al. (2020) ‘Improving renewable energy policy planning and decision-making through a hybrid MCDM method’, Energy Policy, 137, p. 111174. https://doi.org/10.1016/j.enpol.2019.111174.

Amiri, T. Y. and Ghasemzadeh, K. (2019) ‘Ethanol Economy’, in Ethanol. Elsevier, pp. 451–504. https://doi.org/10.1016/B978-0-12-811458-2.00018-3.

APROBI (2018) Keunggulan Biodiesel berbasis Kelapa Sawit-Seminar of RPOI. Jakarta. Available at: https://www.aprobi.or.id/

Bilgili, F. et al. (2020) ‘Estimation of the co-movements between biofuel production and food prices: a wavelet-based analysis’, Energy, 213, p. 118777.

BP (2016) Statistical Review of World Energy. United Kingdom: British Petroleum Company. Available at: http://www.bp.com/statisticalreview

Correa, D. F. et al. (2019) ‘Towards the implementation of sustainable biofuel production systems’, Renewable and Sustainable Energy Reviews, 107, pp. 250–263. https://doi.org/10.1016/j.rser.2019.03.005

Delgado, J. E., Salgado, J. J. and Perez, R. (2015) ‘Perspectivas de los biocombustibles en Colombia’, Revista Ingenierías Universidad de Medellín, 14(27), pp. 13–28.

Demirbas, A. et al. (2016) ‘Biodiesel production from non-edible plant oils’, Energy Exploration and Exploitation, 34(2), pp. 290–318. htpps://doi.org/10.1177/0144598716630166

DEN (2019) Indonesia Energy Outlook. Dewan Energi Nasional.

Dharmawan, A. et al. (2020) ‘Bioenergy Policy: The Biodiesel Sustainability Dilemma in Indonesia’, International Journal of Sustainable Development and Planning, 15(4), pp. 537–546. htpps://doi.org/10.18280/ijsdp.150414.

DNP (2008) Lineamentos de Política para Promover la Producci´on Sostenible de Biocombustibles en Colombia. Available at: http://www.fedebiocombustibles.com/files/Conpes_3510.pdf

Doumax-Tagliavini, V. and Sarasa, C. (2018) ‘Looking towards policies supporting biofuels and technological change: Evidence from France’, Renewable and Sustainable Energy Reviews, 94, pp. 430–439.

Ewunie, G. A. et al. (2020) ‘Factors affecting the potential of Jatropha curcas for sustainable biodiesel production: A critical review’, Renewable and Sustainable Energy Reviews, p. 110500.

Fedepalma (2019) Sistema de informacion estadistica del sector palmero - SISPA 2019. Available at: http://sispa.fedepalma.org/sispaweb (Accessed: 12 May 2021).

GAPKI (2020) Kinerja Industri Sawit Indonesia 2019. Jakarta.

Ghosh, P., Westhoff, P. and Debnath, D. (2019) ‘Biofuels, food security, and sustainability’, in Biofuels, bioenergy and food security. Elsevier, pp. 211–229.

Gonzalez-Salazar, M. A. et al. (2017) ‘Combining an accelerated deployment of bioenergy and land use strategies: Review and insights for a post-conflict scenario in Colombia’, Renewable and Sustainable Energy Reviews, 73, pp. 159–177. https://doi.org/10.1016/j.rser.2017.01.082.

Hajjari, M. et al. (2017) ‘A review on the prospects of sustainable biodiesel production: A global scenario with an emphasis on waste-oil biodiesel utilization’, Renewable and Sustainable Energy Reviews, 72, pp. 445–464. https://doi.org/10.1016/j.rser.2017.01.034.

How, B. S. et al. (2019) ‘An outlook of Malaysian biomass industry commercialisation: Perspectives and challenges’, Renewable and Sustainable Energy Reviews, 113, p. 109277.

IEA (2017) Southeast Asia Energy Outlook 2017 - World Energy Outlook Special Report. Paris: International Energy Agency.

Jarzebski, M. P. et al. (2020) ‘Food security impacts of industrial crop production in sub-Saharan Africa: a systematic review of the impact mechanisms’, Food Security, 12(1), pp. 105–135.

Kaniapan, S. et al. (2021) ‘The Utilisation of Palm Oil and Oil Palm Residues and the Related Challenges as a Sustainable Alternative in Biofuel, Bioenergy, and Transportation Sector: A Review’, Sustainability, 13(6), p. 3110. https://doi.org/10.3390/su13063110.

Kementan (2020) Statistik perkebunan Indonesia 2018-2020, Buku Statistik Perkebunan Indonesia. Kementerian Pertanian. Available at: https://drive.google.com/file/d/1FVxpBNihnuB3ayAALBi-FtsBShIUxMTD/view

KESDM (2019) Handbook of Energy & Economic Ststistics of Indonesia. Jakarta: Kementerian Energi dan Sumber Daya Mineral.

KESDM (2021) Handbook of Energy & Economy Statistics of Indonesia 2020. Jakarta: Kementerian Energi dan Sumber Daya Mineral. Available at: https://www.esdm.go.id/en/publication/handbook-of-energyeconomic-statistics-of-indonesia-heesi.

KLHK (2016) Indonesia: First Nationally Determined Contribution, Indonesia. Available at: http://www4.unfccc.int/ndcregistry/PublishedDocuments/Indonesia First/First NDC Indonesia_submitted toUNFCCC Set_November 2016.pdf

Kurowska, K. et al. (2020) ‘Food security in the context of liquid biofuels production’, Energies, 13(23), p. 6247.

Manochio, C. et al. (2017) ‘Ethanol from biomass: A comparative overview’, Renewable and Sustainable Energy Reviews, 80, pp. 743–755. https://doi.org/10.1016/j.rser.2017.05.063.

Mathews, J. and Ardiyanto, A. (2015) ‘Estimation of Greenhouse Gas Emissions for Palm Oil Biodiesel Production: A Review and Case Study within the Council Directives 2009/28/EC of the European Parliament’, Health, 6, pp. 25–41.

Minenergia (2020) Resoluci´on 40178 de 2020- Gobierno de Colombia, Ministerio de Minas y Energía. Available at: https://www.minenergia.gov.co (Accessed: 18 May 2021).

Moioli, E. et al. (2018) ‘Analysis of the current world biofuel production under a water–food–energy nexus perspective’, Advances in water resources, 121, pp. 22–31.

Mol, A. P. J. (2007) ‘Boundless Biofuels? Between Environmental Sustainability and Vulnerability’, Sociologia Ruralis, 47(4), pp. 297–315. https://doi.org/10.1111/j.1467-9523.2007.00446.x

Molajou, A. et al. (2021) ‘A new paradigm of water, food, and energy nexus’, Environmental Science and Pollution Research, pp. 1–11.

Moustakas, K. et al. (2020) ‘A review of recent developments in renewable and sustainable energy systems: Key challenges and future perspective’. Elsevier.

Naylor, R. L. and Higgins, M. M. (2017) ‘The political economy of biodiesel in an era of low oil prices’, Renewable and Sustainable Energy Reviews, 77, pp. 695–705. https://doi.org/10.1016/j.rser.2017.04.026

Nuva, N. et al. (2019) ‘Political Economy of Renewable Energy and Regional Development: Understanding Social and Economic Problems of Biodiesel Development in Indonesia’, Sodality: Jurnal Sosiologi Pedesaan, 7(2), pp. 110–118. https://doi.org/10.22500/sodality.v7i2.19727

Nyambane, A., Ochieng, C. and Johnson, F. X. (2021) ‘Local food security impacts of biofuel crop production in southern Africa’.

Onwuegbuzie, A. J., Leech, N. L. and Collins, K. M. T. (2012) ‘Qualitative analysis techniques for the review of the literature.’, Qualitative Report, 17, p. 56.

Páez, C. F. T. and Salazar, O. V. (2021) ‘Analysis of biofuel production in Ecuador from the perspective of the water-food-energy nexus’, Energy Policy, 157, p. 112496.

Palacio-Ciro, S. and Vasco-Correa, C. A. (2020) ‘Biofuels policy in Colombia: A reconfiguration to the sugar and palm sectors?’, Renewable and Sustainable Energy Reviews, 134(September), p. 110316. https://doi.org/10.1016/j.rser.2020.110316

Pertamina (2019) Ethanol Dilemma. Available at: https://www.pertamina.com (Accessed: 12 March 2021).

Purnomo, H. et al. (2020) ‘Reconciling oil palm economic development and environmental conservation in Indonesia: A value chain dynamic approach’, Forest Policy and Economics, 111, p. 102089. https://doi.org/10.1016/j.forpol.2020.102089

Putrasari, Y. et al. (2016) ‘Resources, policy, and research activities of biofuel in Indonesia: A review’, Energy Reports, 2, pp. 237–245. https://doi.org/10.1016/j.egyr.2016.08.005

Ramadani, T. et al. (2019) ‘Implementasi Kebijakan Satu Peta Energi Sumber Daya Mineral (Esdm One Map) di Kementerian Energi Sumber Daya Mineral Republik Indonesia’, Matra Pembaruan, 3(2), pp. 109–118. https://doi.org/10.21787/mp.3.2.2019.109-118

Renzaho, A. M. N., Kamara, J. K. and Toole, M. (2017) ‘Biofuel production and its impact on food security in low and middle income countries: Implications for the post-2015 sustainable development goals’, Renewable and Sustainable Energy Reviews, 78, pp. 503–516.

Saravanan, A. P., Pugazhendhi, A. and Mathimani, T. (2020) ‘A comprehensive assessment of biofuel policies in the BRICS nations: Implementation, blending target and gaps’, Fuel, 272, p. 117635. https://doi.org/10.1016/j.fuel.2020.117635

Schwaiger, H. et al. (2011) ‘Technologies to produce liquid biofuels for transportation: An overview’.

Setiawan, K. (2021) Ekspor Produk Sawit 2020 Capai Rp 321 T, Tumbuh 13,6 Persen, Bisnis Tempo. Available at: https://bisnis.tempo.co/read/1431588/ekspor-produk-sawit-2020-capai-rp-321-t-tumbuh-136-persen (Accessed: 8 June 2021).

Silitonga, J. A., Widodo, P. and Ahmad, I. (2020) ‘Biodiesel B20’s policy analyzes as a part of the indonesia biofuel in supporting of the indonesia government energy security program in indonesia’, Jurnal Ketahanan Energi, 6(1), pp. 61–79.

Silveira, S. and Khatiwada, D. (2019) ‘Sugarcane Biofuel Production in Indonesia’, Springer Nature. https://doi.org/10.1007/978-3-030-18597-8

Statistika (2019) Global biofuel production. Available at: https://www.statista.com/statistics/274163/global-biofuel-production-in-oil-equivalent (Accessed: 4 May 2021).

Tjakrawan, P. (2015) ‘Competitiveness issues on palm oil biodiesel’, The 3rd Bioenergy Week.

Valencia, M. J. and Cardona, C. A. (2014) ‘The Colombian biofuel supply chains: The assessment of current and promising scenarios based on environmental goals’, Energy Policy, 67, pp. 232–242. https://doi.org/10.1016/j.enpol.2013.12.021

Zentou, H. et al. (2019) ‘The viability of biofuels in developing countries: successes, failures, and challenges’, Iranian Journal of Chemistry and Chemical Engineering (IJCCE), 38(4), pp. 173–182.

Published

2022-05-31

How to Cite

Paminto, A., Koestoer, R., Karuniasa, M., & Frimawaty, E. (2022). Comparison of Biofuel Development in Indonesia and Columbia: Dilema between markets, production capacity, and absorption. Matra Pembaruan: Jurnal Inovasi Kebijakan, 6(1), 43-55. https://doi.org/10.21787/mp.6.1.2022.43-55

Issue

Section

Articles