IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v189y2024ipas1364032123007694.html
   My bibliography  Save this article

Biodiesel implementation in Indonesia: Experiences and future perspectives

Author

Listed:
  • Wirawan, Soni S.
  • Solikhah, Maharani D.
  • Setiapraja, Hari
  • Sugiyono, Agus

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.

Suggested Citation

  • Wirawan, Soni S. & Solikhah, Maharani D. & Setiapraja, Hari & Sugiyono, Agus, 2024. "Biodiesel implementation in Indonesia: Experiences and future perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    • Handle: RePEc:eee:rensus:v:189:y:2024:i:pa:s1364032123007694
    DOI: 10.1016/j.rser.2023.113911
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032123007694
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2023.113911?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Winden, Matthew & Cruze, Nathan & Haab, Tim & Bakshi, Bhavik, 2015. "Monetized value of the environmental, health and resource externalities of soy biodiesel," Energy Economics, Elsevier, vol. 47(C), pages 18-24.
    2. Rahman, Arief & Dargusch, Paul & Wadley, David, 2021. "The political economy of oil supply in Indonesia and the implications for renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    3. Cardeño, Fernando & Lapuerta, Magín & Rios, Luis & Agudelo, John R., 2020. "Reconsideration of regulated contamination limits to improve filterability of biodiesel and blends with diesel fuels," Renewable Energy, Elsevier, vol. 159(C), pages 1243-1251.
    4. de Souza, T.A.Z. & Pinto, G.M. & Julio, A.A.V. & Coronado, C.J.R. & Perez-Herrera, R. & Siqueira, B.O.P.S. & da Costa, R.B.R. & Roberts, J.J. & Palacio, J.C.E., 2022. "Biodiesel in South American countries: A review on policies, stages of development and imminent competition with hydrotreated vegetable oil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    5. Iman K. Reksowardojo & Hari Setiapraja & Rizqon Fajar & Edi Wibowo & Dadan Kusdiana, 2020. "An Investigation of Laboratory and Road Test of Common Rail Injection Vehicles Fueled with B20 Biodiesel," Energies, MDPI, vol. 13(22), pages 1-15, November.
    6. Lo, Shirleen Lee Yuen & How, Bing Shen & Leong, Wei Dong & Teng, Sin Yong & Rhamdhani, Muhammad Akbar & Sunarso, Jaka, 2021. "Techno-economic analysis for biomass supply chain: A state-of-the-art review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    7. Małgorzata Hawrot-Paw & Adam Koniuszy & Paweł Sędłak & Daria Seń, 2020. "Functional Properties and Microbiological Stability of Fatty Acid Methyl Esters (FAME) under Different Storage Conditions," Energies, MDPI, vol. 13(21), pages 1-12, October.
    8. Channappagoudra, Manjunath & Ramesh, K. & Manavendra, G., 2019. "Comparative study of standard engine and modified engine with different piston bowl geometries operated with B20 fuel blend," Renewable Energy, Elsevier, vol. 133(C), pages 216-232.
    9. T. M. Yunus Khan & Irfan Anjum Badruddin & Manzoore Elahi M. Soudagar & Sanjeev V. Khandal & Sarfaraz Kamangar & Imran Mokashi & M. A. Mujtaba & Nazia Hossain, 2021. "Biodiesel Production Using Modified Direct Transesterification by Sequential Use of Acid-Base Catalysis and Performance Evaluation of Diesel Engine Using Various Blends," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    10. Liaquat, A.M. & Masjuki, H.H. & Kalam, M.A. & Fazal, M.A. & Khan, Abdul Faheem & Fayaz, H. & Varman, M., 2013. "Impact of palm biodiesel blend on injector deposit formation," Applied Energy, Elsevier, vol. 111(C), pages 882-893.
    11. Sahara & Ahmad Dermawan & Syarifah Amaliah & Tony Irawan & Salsa Dilla, 2022. "Economic impacts of biodiesel policy in Indonesia: a computable general equilibrium approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-22, December.
    12. Sandeep Krishnakumar & T. M. Yunus Khan & C. R. Rajashekhar & Manzoore Elahi M. Soudagar & Asif Afzal & Ashraf Elfasakhany, 2021. "Influence of Graphene Nano Particles and Antioxidants with Waste Cooking Oil Biodiesel and Diesel Blends on Engine Performance and Emissions," Energies, MDPI, vol. 14(14), pages 1-17, July.
    13. Jemima Romola, C.V. & Meganaharshini, M. & Rigby, S.P. & Ganesh Moorthy, I. & Shyam Kumar, R. & Karthikumar, Sankar, 2021. "A comprehensive review of the selection of natural and synthetic antioxidants to enhance the oxidative stability of biodiesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    14. Zulqarnain & Muhammad Ayoub & Mohd Hizami Mohd Yusoff & Muhammad Hamza Nazir & Imtisal Zahid & Mariam Ameen & Farooq Sher & Dita Floresyona & Eduardus Budi Nursanto, 2021. "A Comprehensive Review on Oil Extraction and Biodiesel Production Technologies," Sustainability, MDPI, vol. 13(2), pages 1-28, January.
    15. Sani, L. & Khatiwada, D. & Harahap, F. & Silveira, S., 2021. "Decarbonization pathways for the power sector in Sumatra, Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    16. Doppalapudi, A.T. & Azad, A.K. & Khan, M.M.K., 2023. "Advanced strategies to reduce harmful nitrogen-oxide emissions from biodiesel fueled engine," Renewable and Sustainable Energy Reviews, Elsevier, vol. 174(C).
    17. Resitoglu, Ibrahim Aslan, 2021. "The effect of biodiesel on activity of diesel oxidation catalyst and selective catalytic reduction catalysts in diesel engine," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    18. Wassell, Charles Jr. & Dittmer, Timothy P., 2006. "Are subsidies for biodiesel economically efficient?," Energy Policy, Elsevier, vol. 34(18), pages 3993-4001, December.
    19. Nejad, Ardeshir Shayan & Zahedi, Ali Reza, 2018. "Optimization of biodiesel production as a clean fuel for thermal power plants using renewable energy source," Renewable Energy, Elsevier, vol. 119(C), pages 365-374.
    20. Halimatussadiah, A. & Nainggolan, D. & Yui, S. & Moeis, F.R. & Siregar, A.A., 2021. "Progressive biodiesel policy in Indonesia: Does the Government's economic proposition hold?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    21. Iman K. Reksowardojo & Hari Setiapraja & Mokhtar & Siti Yubaidah & Dieni Mansur & Agnes K. Putri, 2023. "A Study on Utilization of High-Ratio Biodiesel and Pure Biodiesel in Advanced Vehicle Technologies," Energies, MDPI, vol. 16(2), pages 1-14, January.
    22. Sun, Jun & Xiong, Xiaoqian & Wang, Mudan & Du, Hua & Li, Jintao & Zhou, Dandan & Zuo, Jian, 2019. "Microalgae biodiesel production in China: A preliminary economic analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 296-306.
    23. Lam, Man Kee & Tan, Kok Tat & Lee, Keat Teong & Mohamed, Abdul Rahman, 2009. "Malaysian palm oil: Surviving the food versus fuel dispute for a sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1456-1464, August.
    24. Yaakob, Zahira & Narayanan, Binitha N. & Padikkaparambil, Silija & Unni K., Surya & Akbar P., Mohammed, 2014. "A review on the oxidation stability of biodiesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 136-153.
    25. Mutascu, Mihai, 2023. "Is biomass energy really sustainable in the United States?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 181(C).
    26. Nabila, Rakhmawati & Hidayat, Wahyu & Haryanto, Agus & Hasanudin, Udin & Iryani, Dewi Agustina & Lee, Sihyun & Kim, Sangdo & Kim, Soohyun & Chun, Donghyuk & Choi, Hokyung & Im, Hyuk & Lim, Jeonghwan &, 2023. "Oil palm biomass in Indonesia: Thermochemical upgrading and its utilization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 176(C).
    27. Yana, Syaifuddin & Nizar, Muhammad & Irhamni, & Mulyati, Dewi, 2022. "Biomass waste as a renewable energy in developing bio-based economies in Indonesia: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    28. Ewunie, Gebresilassie Asnake & Morken, John & Lekang, Odd Ivar & Yigezu, Zerihun Demrew, 2021. "Factors affecting the potential of Jatropha curcas for sustainable biodiesel production: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    29. Lawrence Joseph Fernandes & C. R. Rajashekhar & T. M. Yunus Khan & Syed Javed & Rahmath Ulla Baig, 2022. "Influence of Pilot-Fueling and Nozzle-Opening Pressure on Performance and Tailpipe Emissions of WCO Biodiesel in a CRDi Engine," Sustainability, MDPI, vol. 14(18), pages 1-14, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erwan Hermawan & Adiarso Adiarso & Sigit Setiadi & Dudi Hidayat, 2023. "Strategy for the implementation of sustainable green fuels in Indonesia," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2023(1), pages 103-139.
    2. Pinto, G.M. & da Costa, R.B.R. & de Souza, T.A.Z. & Rosa, A.J.A.C. & Raats, O.O. & Roque, L.F.A. & Frez, G.V. & Coronado, C.J.R., 2023. "Experimental investigation of performance and emissions of a CI engine operating with HVO and farnesane in dual-fuel mode with natural gas and biogas," Energy, Elsevier, vol. 277(C).
    3. Nabila, Rakhmawati & Hidayat, Wahyu & Haryanto, Agus & Hasanudin, Udin & Iryani, Dewi Agustina & Lee, Sihyun & Kim, Sangdo & Kim, Soohyun & Chun, Donghyuk & Choi, Hokyung & Im, Hyuk & Lim, Jeonghwan &, 2023. "Oil palm biomass in Indonesia: Thermochemical upgrading and its utilization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 176(C).
    4. Zhang, Long & Bai, Wuliyasu, 2021. "Sustainability of crop–based biodiesel for transportation in China: Barrier analysis and life cycle ecological footprint calculations," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    5. Nadir Yilmaz & Alpaslan Atmanli & Matthew J. Hall & Francisco M. Vigil, 2022. "Determination of the Optimum Blend Ratio of Diesel, Waste Oil Derived Biodiesel and 1-Pentanol Using the Response Surface Method," Energies, MDPI, vol. 15(14), pages 1-16, July.
    6. Doppalapudi, A.T. & Azad, A.K. & Khan, M.M.K., 2021. "Combustion chamber modifications to improve diesel engine performance and reduce emissions: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    7. Masera, Kemal & Hossain, Abul Kalam, 2023. "Advancement of biodiesel fuel quality and NOx emission control techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 178(C).
    8. Mat Yasin, Mohd Hafizil & Mamat, Rizalman & Najafi, G. & Ali, Obed Majeed & Yusop, Ahmad Fitri & Ali, Mohd Hafiz, 2017. "Potentials of palm oil as new feedstock oil for a global alternative fuel: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 1034-1049.
    9. Rahman, Arief & Richards, Russell & Dargusch, Paul & Wadley, David, 2023. "Pathways to reduce Indonesia’s dependence on oil and achieve longer-term decarbonization," Renewable Energy, Elsevier, vol. 202(C), pages 1305-1323.
    10. Janaun, Jidon & Ellis, Naoko, 2010. "Perspectives on biodiesel as a sustainable fuel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(4), pages 1312-1320, May.
    11. Iman K. Reksowardojo & Hari Setiapraja & Rizqon Fajar & Edi Wibowo & Dadan Kusdiana, 2020. "An Investigation of Laboratory and Road Test of Common Rail Injection Vehicles Fueled with B20 Biodiesel," Energies, MDPI, vol. 13(22), pages 1-15, November.
    12. Dey, Subhashish & Sreenivasulu, Anduri & Veerendra, G.T.N. & Rao, K. Venkateswara & Babu, P.S.S. Anjaneya, 2022. "Renewable energy present status and future potentials in India: An overview," Innovation and Green Development, Elsevier, vol. 1(1).
    13. Winden, Matthew & Cruze, Nathan & Haab, Tim & Bakshi, Bhavik, 2015. "Monetized value of the environmental, health and resource externalities of soy biodiesel," Energy Economics, Elsevier, vol. 47(C), pages 18-24.
    14. Zahedi, Ali Reza & Mirnezami, Seyed Abolfazl, 2020. "Experimental analysis of biomass to biodiesel conversion using a novel renewable combined cycle system," Renewable Energy, Elsevier, vol. 162(C), pages 1177-1194.
    15. Goh, Brandon Han Hoe & Ong, Hwai Chyuan & Cheah, Mei Yee & Chen, Wei-Hsin & Yu, Kai Ling & Mahlia, Teuku Meurah Indra, 2019. "Sustainability of direct biodiesel synthesis from microalgae biomass: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 59-74.
    16. Lim, Juin Yau & Teng, Sin Yong & How, Bing Shen & Nam, KiJeon & Heo, SungKu & Máša, Vítězslav & Stehlík, Petr & Yoo, Chang Kyoo, 2022. "From microalgae to bioenergy: Identifying optimally integrated biorefinery pathways and harvest scheduling under uncertainties in predicted climate," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    17. Fanta Barry & Marie Sawadogo & Maïmouna Bologo (Traoré) & Igor W. K. Ouédraogo & Thomas Dogot, 2021. "Key Barriers to the Adoption of Biomass Gasification in Burkina Faso," Sustainability, MDPI, vol. 13(13), pages 1-14, June.
    18. Obed M. Ali & Rizalman Mamat & Gholamhassan Najafi & Talal Yusaf & Seyed Mohammad Safieddin Ardebili, 2015. "Optimization of Biodiesel-Diesel Blended Fuel Properties and Engine Performance with Ether Additive Using Statistical Analysis and Response Surface Methods," Energies, MDPI, vol. 8(12), pages 1-15, December.
    19. Teoh, Y.H. & How, H.G. & Masjuki, H.H. & Nguyen, H.-T. & Kalam, M.A. & Alabdulkarem, A., 2019. "Investigation on particulate emissions and combustion characteristics of a common-rail diesel engine fueled with Moringa oleifera biodiesel-diesel blends," Renewable Energy, Elsevier, vol. 136(C), pages 521-534.
    20. K. M. Akkoli & N. R. Banapurmath & Suresh G & Manzoore Elahi M. Soudagar & T. M. Yunus Khan & Maughal Ahmed Ali Baig & M. A. Mujtaba & Nazia Hossain & Kiran Shahapurkar & Ashraf Elfasakhany & Mishal A, 2021. "Effect of Producer Gas from Redgram Stalk and Combustion Chamber Types on the Emission and Performance Characteristics of Diesel Engine," Energies, MDPI, vol. 14(18), pages 1-17, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:189:y:2024:i:pa:s1364032123007694. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.