Conditions for a sustainable development of palm-oil-based biodiesel in Indonesia
2016 (English)Conference paper, Poster (Other academic)
The government of Indonesia sees bioenergy as an attractive option to promote socio-economic development and improve energy security. Modernization of bioenergy can add value to existing resources and serve to meet increasing energy demand, as well as create jobs and reduce poverty. Policy efforts have given direction to this development, promoting biodiesel production and use. Indonesia is the largest palm oil producer and exporter in the world. At the same time, palm oil is the basis for both food and biodiesel production in the country. A 30% mandatory biodiesel blending target has been set for 2025. To meet the target, palm oil production needs to increase or palm oil diverted from other uses to produce biodiesel. In addition, the development of biodiesel will have to address environmental impacts, particularly land use change, and the dynamics of palm oil trade. Land allocation affects the development of the agro-industrial sector, and the capacity to deliver the mandatory targets. We investigate the land issue through a cross-sectoral analysis of four policy areas, i.e. renewable energy/biofuel, agriculture, climate and forestry. Our study examines the potential land available for biodiesel feedstock production and the potential yields that can be obtained. Preliminary results indicate that the blending target could be met from palm oil obtained from 5-7 Mha land after meeting palm oil domestic demand for food production and other industrial non-food uses. Degraded land could be used and thus no threat needs to be posed to food security, deforestation and climate change. However, to guarantee the sustainability of the development process, inconsistencies need to be addressed in the sectoral policies, areas suitable for plantation expansion need to be clearly mapped, conditions for exploration more strictly defined, and complementary policy instruments need to be put in place to promote schemes with enhanced yields and upgrading technologies over time. This research is part of the on-going program INSISTs (Indonesian Swedish Initiative for Sustainable Energy Solutions), a joint research and innovation platform established between Sweden and Indonesia.
Place, publisher, year, edition, pages
ICOPE , 2016.
palm oil, biodiesel, yield, policy analysis, feedstock, blending target
Research subject Energy Technology
IdentifiersURN: urn:nbn:se:kth:diva-185510OAI: oai:DiVA.org:kth-185510DiVA: diva2:921732
Sustainable Palm Oil and Climate Change: The Way Forward Through Mitigation and Adaptation, 16-18 March 2016, Bali, Indonesia
ProjectsSTEM BIOENERGI INDONESIEN
FunderSwedish Energy Agency, T6473
QC 201604212016-04-212016-04-212016-04-21Bibliographically approved