Strategies to Improve Bioethanol Utilization in Indonesia

7 Pages Posted: 20 Jun 2018

See all articles by Rika Lumban Gaol

Rika Lumban Gaol

Universitas Pertahanan Indonesia

Amarulla Octavian

Universitas Pertahanan Indonesia

Yanif Dwi Kuntjoro

Universitas Pertahanan Indonesia

Date Written: May 27, 2018

Abstract

Government of Indonesia through Government Regulation No. 79 year 2014 on National Energy Policy has set the goal to develop and realizing the utilization of new and renewable energy in the national energy mix of 23% by 2025 where 5% of it comes from the biofuel utilization. Biofuel is grouped into 3 (three) characteristics based on the substitution for fossil fuels, which are biodiesel, bioethanol and bio-avtur. According to the Directorate General of New and Renewable Energy and Energy Conservation under the Ministry of Energy and Mineral Resources, they estimate that the needs of biodiesel and bioethanol in 2025 are respectively 12.1 billion liters and 10.2 billion liters. However, during the period of 2013 – 2015, the bioethanol utilization has yet to be realized in line with the national energy mix policy. A qualitative approach on strategies to improve bioethanol utilization in Indonesia is the methodology used in this paper. Through qualitative approach, this paper focused on literature review as technique for data analysis to obtain literature or secondary data. The data used are secondary data obtained from various sources, such the Ministry of Energy and Mineral Resources, the Agency for the Assessment and Application of Technology, the Ministry of Finance as well as a range of research and other resources accessed through the Internet. The goal of these explorations is to find some strategies to improve the bioethanol utilization in Indonesia, which might be used by the government of Indonesia as recommendation to meet its target under national energy policy to reduce dependence on fuel oil and crude oil imports in the future and achieve energy security and energy independence. The result shows that developing a bioethanol market structure, updating technology and improving the role of the government are strategies to improve the bioethanol utilization in Indonesia.

Keywords: Bioethanol; energy security; national energy policy; qualitative approach; strategies

Suggested Citation

Gaol, Rika Lumban and Octavian, Amarulla and Kuntjoro, Yanif Dwi, Strategies to Improve Bioethanol Utilization in Indonesia (May 27, 2018). 3rd International Conference of Integrated Intellectual Community (ICONIC) 2018, Available at SSRN: https://ssrn.com/abstract=3192593 or http://dx.doi.org/10.2139/ssrn.3192593

Rika Lumban Gaol (Contact Author)

Universitas Pertahanan Indonesia ( email )

Kawasan IPSC, Sentul
Bogor, 16810
Indonesia

Amarulla Octavian

Universitas Pertahanan Indonesia ( email )

Kawasan IPSC, Sentul
Bogor, 16810
Indonesia

Yanif Dwi Kuntjoro

Universitas Pertahanan Indonesia ( email )

Kawasan IPSC, Sentul
Bogor, 16810
Indonesia

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