Just Transition in Biofuel Development towards Low-Carbon Economy: Multi-Actor Perspectives on Policies and Practices in Indonesia

Prija Djatmika, Prischa Listiningrum (), Theresia B. Sumarno, Dararida F. Mahira and Corinthias P. M. Sianipar ()
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Prija Djatmika: Faculty of Law, Brawijaya University (UB), Malang 65145, Indonesia
Prischa Listiningrum: Faculty of Law, Brawijaya University (UB), Malang 65145, Indonesia
Theresia B. Sumarno: Aberdeen Business School, Robert Gordon University (RGU), Aberdeen AB10 7QE, UK
Dararida F. Mahira: Faculty of Law, Brawijaya University (UB), Malang 65145, Indonesia
Corinthias P. M. Sianipar: Department of Global Ecology, Kyoto University, Kyoto 606-8501, Japan

Energies, 2023, vol. 17, issue 1, 1-29

Abstract: Justice and sustainability are the foundation of fair and equitable biofuel development. Policies and practices are consequently necessary to support a just transition towards a low-carbon economy. Therefore, this study aimed to understand multi-actor perspectives on policies and practices relevant to the just transition in biofuel development. Applying a socio-legal approach based on the JUST framework, this study focused on the Indonesian biofuel industry, which is primarily driven by crude palm oil (CPO) production. This study also added comparative perspectives from Thailand’s biofuel industry. The primary data were gathered from in-depth interviews and focus group discussions (FGDs), while the secondary data were from research, policy, and other government archives. Based on the results, oil palm plantations in Indonesia and Thailand are crucial for macroeconomic development. However, smallholder farmers in Indonesia, especially independent ones that do not join farmer groups, remain marginalised by the current regulations. In fact, many benefits from biofuel practices and policies accumulate disproportionately towards large corporations, while marginalised groups bear the costs. The Indonesian Sustainable Palm Oil (ISPO) certification that should induce market accessibility and competitiveness has not fully reached most rural farmers. Furthermore, various overlapping regulations and perplexing data differences exist from multiple ministries and administrative levels. Thus, palm oil stakeholders in Indonesia demand a dedicated institution for integrated regulation and monitoring of the industry, similar to the National Palm Oil Policy Committee in Thailand. The myriad of legal, political, socio-economic, and justice issues thus necessitates all hands on deck to ensure a just transition for all stakeholders of the Indonesian biofuel industry.

Keywords: energy transition; energy policy; renewable energy; energy justice; socio-legal analysis; multi-actor systems; rural development; energy sustainability; bioenergy; fairness and equity (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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