IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2019-06-51.html
   My bibliography  Save this article

Projection of Biodiesel Production in Indonesia to Achieve National Mandatory Blending in 2025 using System Dynamics Modeling

Author

Listed:
  • Fitriyanti Mayasari

    (Department of Electrical Engineering, Universitas Indonesia, Indonesia)

  • Rinaldy Dalimi

    (Department of Electrical Engineering, Universitas Indonesia, Indonesia)

  • Widodo Wahyu Purwanto

    (Department of Chemical Engineering, Universitas Indonesia, Indonesia.)

Abstract

Biodiesel has been produced since 2006 in Indonesia and regulation of biodiesel blending has been set, but the actual blending rate was never reached the target. The research aims to increase biodiesel production to achieve mandatory target and reduce diesel oil import. It will project biodiesel production achieving demand in Indonesia until 2025 and proposes some strategies to increase blended biodiesel production by constructing system dynamics modeling. The research shows, there are 3 scenarios to increase biodiesel production; palm oil cultivation land, palm oil productivity and refined CPO shared. To meet blended biodiesel demand, cultivation land should be increased to 3.2-6.5% per year, productivity should be fixed to 12.54 ton/ha and refined CPO shared should be adjusted to 56.9-65.4%. This scenario also will reduce diesel oil import to 7.16 9.82 million kL per year. Refined CPO shared is the most influenced variable; therefore the government should consider to make refined CPO export limitation policy.

Suggested Citation

  • Fitriyanti Mayasari & Rinaldy Dalimi & Widodo Wahyu Purwanto, 2019. "Projection of Biodiesel Production in Indonesia to Achieve National Mandatory Blending in 2025 using System Dynamics Modeling," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 421-429.
    • Handle: RePEc:eco:journ2:2019-06-51
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/8319/4676
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/8319/4676
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schade, Burkhard & Wiesenthal, Tobias, 2011. "Biofuels: A model based assessment under uncertainty applying the Monte Carlo method," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 92-126, January.
    2. Lin, Jiefeng & Gaustad, Gabrielle & Trabold, Thomas A., 2013. "Profit and policy implications of producing biodiesel–ethanol–diesel fuel blends to specification," Applied Energy, Elsevier, vol. 104(C), pages 936-944.
    3. Mekhilef, S. & Siga, S. & Saidur, R., 2011. "A review on palm oil biodiesel as a source of renewable fuel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 1937-1949, May.
    4. Nongbe, Medy C. & Ekou, Tchirioua & Ekou, Lynda & Yao, Kouassi Benjamin & Le Grognec, Erwan & Felpin, François-Xavier, 2017. "Biodiesel production from palm oil using sulfonated graphene catalyst," Renewable Energy, Elsevier, vol. 106(C), pages 135-141.
    5. Singh, S.P. & Singh, Dipti, 2010. "Biodiesel production through the use of different sources and characterization of oils and their esters as the substitute of diesel: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 200-216, January.
    6. Araujo Enciso, Sergio René & Fellmann, Thomas & Pérez Dominguez, Ignacio & Santini, Fabien, 2016. "Abolishing biofuel policies: Possible impacts on agricultural price levels, price variability and global food security," Food Policy, Elsevier, vol. 61(C), pages 9-26.
    7. Harahap, Fumi & Silveira, Semida & Khatiwada, Dilip, 2019. "Cost competitiveness of palm oil biodiesel production in Indonesia," Energy, Elsevier, vol. 170(C), pages 62-72.
    8. Lam, Man Kee & Tan, Kok Tat & Lee, Keat Teong & Mohamed, Abdul Rahman, 2009. "Malaysian palm oil: Surviving the food versus fuel dispute for a sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1456-1464, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erwan Hermawan & Adiarso Adiarso & Sigit Setiadi & Dudi Hidayat, 2023. "Strategy for the implementation of sustainable green fuels in Indonesia," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2023(1), pages 103-139.
    2. Muhammad Mutasim Billah Tufail & Mohd Nasrun Mohd Nawi & Akhtiar Ali & Faizal Baharum & Mohamad Zamhari Tahir & Anas Abdelsatar Mohammad Salameh, 2021. "Forecasting Impact of Demand Side Management on Malaysia s Power Generation using System Dynamic Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 412-418.
    3. Sylvia Mardiana, 2023. "Gasoline Policy Simulation to Increase Responsiveness Using System Dynamics: A Case Study of Indonesia’s Gasoline Downstream Supply Chain," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 109-118, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohd Noor, C.W. & Noor, M.M. & Mamat, R., 2018. "Biodiesel as alternative fuel for marine diesel engine applications: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 127-142.
    2. Ashnani, Mohammad Hossein Mohammadi & Johari, Anwar & Hashim, Haslenda & Hasani, Elham, 2014. "A source of renewable energy in Malaysia, why biodiesel?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 244-257.
    3. Obed M. Ali & Rizalman Mamat & Gholamhassan Najafi & Talal Yusaf & Seyed Mohammad Safieddin Ardebili, 2015. "Optimization of Biodiesel-Diesel Blended Fuel Properties and Engine Performance with Ether Additive Using Statistical Analysis and Response Surface Methods," Energies, MDPI, vol. 8(12), pages 1-15, December.
    4. Gan, Peck Yean & Li, Zhi Dong, 2014. "Econometric study on Malaysia׳s palm oil position in the world market to 2035," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 740-747.
    5. Nongbe, Medy C. & Ekou, Tchirioua & Ekou, Lynda & Yao, Kouassi Benjamin & Le Grognec, Erwan & Felpin, François-Xavier, 2017. "Biodiesel production from palm oil using sulfonated graphene catalyst," Renewable Energy, Elsevier, vol. 106(C), pages 135-141.
    6. Mekhilef, S. & Siga, S. & Saidur, R., 2011. "A review on palm oil biodiesel as a source of renewable fuel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 1937-1949, May.
    7. Singh, Paramvir & Varun, & Chauhan, S.R. & Kumar, Niraj, 2016. "A review on methodology for complete elimination of diesel from CI engines using mixed feedstock," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1110-1125.
    8. Mofijur, M. & Masjuki, H.H. & Kalam, M.A. & Ashrafur Rahman, S.M. & Mahmudul, H.M., 2015. "Energy scenario and biofuel policies and targets in ASEAN countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 46(C), pages 51-61.
    9. Mat Yasin, Mohd Hafizil & Mamat, Rizalman & Najafi, G. & Ali, Obed Majeed & Yusop, Ahmad Fitri & Ali, Mohd Hafiz, 2017. "Potentials of palm oil as new feedstock oil for a global alternative fuel: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1034-1049.
    10. Đurišić-Mladenović, Nataša & Kiss, Ferenc & Škrbić, Biljana & Tomić, Milan & Mićić, Radoslav & Predojević, Zlatica, 2018. "Current state of the biodiesel production and the indigenous feedstock potential in Serbia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 280-291.
    11. Othman, Norashida & Yusop, Zulkornain & Ismail, Mohd Mansor & Mohammad Afandi, Syamsul Herman, 2020. "The Trade Competitiveness of Palm-Biodiesel in Renewable Energy Market," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(1), pages 33-42.
    12. Santeramo, Fabio Gaetano & Di Gioia, Leonardo & Lamonaca, Emilia, 2021. "Price responsiveness of supply and acreage in the EU vegetable oil markets: Policy implications," Land Use Policy, Elsevier, vol. 101(C).
    13. Yesilyurt, Murat Kadir & Cesur, Cüneyt & Aslan, Volkan & Yilbasi, Zeki, 2020. "The production of biodiesel from safflower (Carthamus tinctorius L.) oil as a potential feedstock and its usage in compression ignition engine: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    14. Motasemi, F. & Ani, F.N., 2012. "A review on microwave-assisted production of biodiesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4719-4733.
    15. Ong, H.C. & Mahlia, T.M.I. & Masjuki, H.H. & Norhasyima, R.S., 2011. "Comparison of palm oil, Jatropha curcas and Calophyllum inophyllum for biodiesel: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3501-3515.
    16. Mofijur, M. & Masjuki, H.H. & Kalam, M.A. & Hazrat, M.A. & Liaquat, A.M. & Shahabuddin, M. & Varman, M., 2012. "Prospects of biodiesel from Jatropha in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5007-5020.
    17. Chakraborty, Rajat & Gupta, Abhishek.K. & Chowdhury, Ratul, 2014. "Conversion of slaughterhouse and poultry farm animal fats and wastes to biodiesel: Parametric sensitivity and fuel quality assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 120-134.
    18. Atabani, A.E. & Silitonga, A.S. & Badruddin, Irfan Anjum & Mahlia, T.M.I. & Masjuki, H.H. & Mekhilef, S., 2012. "A comprehensive review on biodiesel as an alternative energy resource and its characteristics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2070-2093.
    19. Foo, K.Y. & Hameed, B.H., 2010. "Insight into the applications of palm oil mill effluent: A renewable utilization of the industrial agricultural waste," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(5), pages 1445-1452, June.
    20. Bateni, Hamed & Karimi, Keikhosro & Zamani, Akram & Benakashani, Fatemeh, 2014. "Castor plant for biodiesel, biogas, and ethanol production with a biorefinery processing perspective," Applied Energy, Elsevier, vol. 136(C), pages 14-22.

    More about this item

    Keywords

    Blended Biodiesel Production; System Dynamics Modeling; Refined CPO Export;
    All these keywords.

    JEL classification:

    • Z - Other Special Topics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2019-06-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.