Biodiesel implementation in Indonesia: Experiences and future perspectives

Soni S. Wirawan, Maharani D. Solikhah, Hari Setiapraja and Agus Sugiyono

Renewable and Sustainable Energy Reviews, 2024, vol. 189, issue PA

Abstract: Indonesia leads the world in biodiesel usage, with B35 (a mixture of 35 % biodiesel and 65 % diesel fuel) as its nationwide standard. The success of biodiesel program is primarily influenced by factors such as encompassing supply, demand, regulatory frameworks, economic considerations, and environmental impact. This comprehensive study delves into Indonesia's biodiesel program, drawing insights from practical experiences and recent research findings. Additionally, it puts recommendations aimed at ensuring the long-term sustainability of biodiesel program. The economical feasibility of mixed biodiesel and diesel fuel (Bxx) depends on the scheme and formula for determining the Biodiesel Market Index Price in Indonesia. Exploiting the emission advantage of biodiesel within “polluter pays” principle could potentially position it as a compelling alternative to conventional diesel fuel. The discussion focuses on the establishment of a carbon tax and the internalization of the external cost of using biodiesel as part of energy policy. In summary, this review provides a reference for other countries that are either in the initial stage of starting or considering the implementation of a biodiesel utilization program in their countries and identifies the existing gaps in the further development of sustainable fuels.

Keywords: Biodiesel; Indonesia; High ratio blending; External cost; Polluters pay principle (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032123007694
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:189:y:2024:i:pa:s1364032123007694

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2023.113911

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().