Determination of the palm based biodiesel policy integration model as a renewable energy commodity

Abstract: The increase in economic activity in the industrial sector and the rapid growth of the world population have stimulated an increase in energy demand. In 2004, Indonesia earned the status of a net importer of oil so that it becomes a challenge for the Indonesian government in developing the use of renewable energy to achieve ideal conditions for national energy security. Indonesia has the potential for large amounts of renewable energy sources, one of which is palm-based biodiesel. The mandatory biodiesel policy program was implemented in 2008 with a biodiesel content of 2.5% and gradually until 2019 with a biodiesel content of 30% (B30). The mandatory biodiesel policy is closely related to the achievement of the Sustainable Development Goals (SDGs), and the concept of maintaining the balance of Trilemma Energi. The current energy management and utilization policies in Indonesia continue to increase in line with modern life consumption patterns that require a more environmentally friendly energy variable for energy absorption in Indonesia, especially renewable energy. The purpose of this research is to determine the integration model of palm-based biodiesel policy as a renewable energy commodity to support energy security. This study uses several strategic frameworks by combining a quantitative approach through the perspective of the Balanced Scorecard (BSC) and measuring the technology coefficient using the Technology Contribution Coefficient (TCC), as well as a qualitative approach with the Business Model Canvas (BMC) and the design of the Omnibus Law. Data were collected through Focus Group Discussion (FGD) and Expert Opinion (EO) which were validated by Structural Equation Modeling-Partial Least Square (SEM-PLS) using a sample of 40 respondents from related agencies. The results showed that based on the SEM-PLS validation of 20 BSC perspective variables, two invalid variables were obtained, namely the variable efficiency port service cost and value-added creation which had a P value> 0.05. Meanwhile, Indonesia's TCC score is quite high, namely 0.787, which means that Indonesia is quite aggressive in developing biodiesel and its policies. Based on the results of the FGD expert, it was obtained that the BMC initiates the helicopters to view current biodiesel developments. And 10 regulations have been drafted into a proposed draft Omnibus Law through an action plan.

How to cite this paper

 Zafriana, L., Marjono, M., Qurbani, I & Sugiono, S. (2021). Determination of the palm based biodiesel policy integration model as a renewable energy commodity.Decision Science Letters , 10(3), 263-276.

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