A Supply Chain Framework for Corn Products in Sumenep to Support Sustainable Ethanol Production

Indonesia’s E10 blending mandate presents a strategic opportunity for decarbonization and inclusive rural development, contingent on a robust supply chain integrating smallholder farmers. This study developed a novel supply chain framework for corn products in Sumenep to facilitate sustainable ethanol production. Methods involved comprehensive data collection, mathematical modeling using the p-median method, and farmer clustering techniques. Findings reveal that Sumenep Regency’s substantial corn harvest of 8,475,914.5 tons, yielding 1,271,387.175 tons of kernels, can produce 381,416.1525 L of bioethanol. By applying a clustering supply chain model, the farmers’ group profit is IDR 205,693,725,826, while it is IDR 177,394,823,353 for the non-clustering model, meaning that the clustering supply chain model increases profit by 16% compared to the model without clustering. This localized production, enabled by a simplified, decentralized supply chain architecture, significantly enhances national energy security, reduces greenhouse gas emissions, and improves the economic stability of smallholder farmers through equitable value capture and minimized logistical costs. The framework offers a practical, implementable strategy for Indonesia’s energy transition, fostering environmental sustainability and inclusive socio-economic development.