Political Economy of Renewable Energy and Regional Development: Understanding Social and Economic Problems of Biodiesel Development in Indonesia

Nuva Nuva, Akhmad Fauzi, Arya Hadi Dharmawan, Eka Intan Kumala Putri

Abstract


The transition of fossil fuel to non-fossil fuels (biodiesel fuel for diesel blending) has continued to evolve. The largest source of biodiesel’ raw materials in Indonesia derives from oil palm. Biodiesel development is also believed to generate benefit for society as well as for regional and national, including job creation, infrastructure improvement, revenue generation for governments and reduce national dependence on fossil fuels, and minimize adverse environmental fossil fuel impacts. However, despite its targets and strengthened by various comprehensive policies, the development of biodiesel in Indonesia also faces significant barriers. Descriptive analysis used in this study to understand the political economy of biodiesel engagement. The limited domestic market, mainly related to the issue of non-competitive prices with diesel, relatively low of oil prices, and high prices of fresh fruit bunches (FFB) are the constraints in the production of biodiesel for domestic uptake. The national political aspect related to the use of biodiesel by government parties, including non-PSOs, becomes an important issue in ensuring the sustainability of biodiesel. In addition, the issue of sustainability in the upstream (oil palm plantation) and dumping issues expressed by the EU and the US Government are also the main problems in Indonesian biodiesel export.


Keywords


biodiesel; oil palm; political economy; rural development

Full Text:

PDF

References


Amortegui, H. M. N. 2012. “A Prospective Analysis of Brazilian Biofuel Economy: Land Use, Infrastructure Development and Fuel Pricing Policies.” Graduate College of University of Illinois.

Ayadi, Mariem, Saurabh Jyoti Sarma, Vinayak Laxman Pachapur, Satinder Kaur Brar, and Ridha Ben Cheikh. 2016. “History and Global Policy of Biofuels.” Pp. 1–14 in Green Fuels Technology, edited by C. R. Soccol, S. K. Brar, C. Faulds, and L. P. Ramos. Switzerland: Springer.

Badan Pengkajian dan Pengembangan Kebijakan Perdagangan. 2013. Analisis Kebijakan Bea Keluar (BK) CPO Dan Produk Turunannya. Jakarta: Kementerian Perdagangan RI.

Balogun, B. O. and A. T. Salami. 2016. “Effects of Biofuel Production on Selected Local Communities in Nigeria.” Journal of Petroleum Technology and Alternative Fuels 7(3):18–30.

Bernadine, Fernz. 2012. Indonesia Biofuels Scoping Exercise. London.

BioFuel.org. 2010. “History of Biofuels.” Retrieved December 18, 2017 (http://biofuel.org.uk/history-of-biofuels.html).

Boons, Frank and Angelica Mendoza. 2010. “Constructing Sustainable Palm Oil: How Actors Define Sustainability.” Journal of Cleaner Production 18:1686–95.

Borras, Saturnino M., Philip McMichael, and Ian Scoones. 2010. “The Politics of Biofuels, Land and Agrarian Change: Editors’ Introduction.” Journal of Peasant Studies 37(4):575–92.

Brüntrup, Michael, Katharina Becker, Martina Gaebler, Raoul Herrmann, Silja Ostermann, and Jan Prothmann. 2016. Policies and Institutions for Assuring Pro-Poor Rural Development and Food Security through Bioenergy Production: Case Studies on Bush-to-Energy and Jatropha in Namibia. Bonn: Deutsches Institut für Entwicklungspolitik.

Cotula, Lorenzo, N. Dyer, and S. Vermeulen. 2008. Fuelling Exclusion? The Biofuels Boom and Poor People’s Access to Land. London: International Institute for Environment and Development (IIED).

Demirbas, Ayhan. 2017. “The Social, Economic, and Environmental Importance of Biofuels in the Future.” Energy Sources, Part B: Economics, Planning and Policy 12(1):47–55.

Demirbas, Ayse Hilal. 2008. Biodiesel: A Realistic Fuel Alternative for Diesel Engines. London: Springer-Verlag.

Demirbas, Ayse Hilal and Imren Demirbas. 2007. “Importance of Rural Bioenergy for Developing Countries.” Journal of Energy Conversion and Management 48(8):2368–98.

Dharmawan, Arya Hadi, Nuva, Rizki Amalia, and D. A. Sudaryanti. 2016. Isu Relevan Kebijakan Bioenergi Dalam Mendukung Ketahanan Dan Kemandirian Energi Di Indonesia: State of the Art. Bogor.

Direktorat Jenderal Energi Baru, Terbarukan dan Konservasi Energi. 2016. Kebijakan Mandatori Biodiesel. Jakarta.

Direktorat Sumber Daya Energi, Mineral dan Pertambangan. 2012. Keselarasan Kebijakan Energi Nasional (KEN) Dengan Rencana Umum Energi Nasional (RUEN) Dan Rencana Umum Energi Daerah (RUED). Jakarta.

Dutu, Richard. 2016. “Challenges and Policies in Indonesia’s Energy Sector.” Energy Policy 98:513–19.

Foley, Gerald. 1992. “Renewable Energy in Third World Development Assistance Learning from Experience.” Energy Policy 20(4):355–64.

Hall, Ruth. 2011. “Land Grabbing in Southern Africa: The Many Faces of the Investor Rush.” Review of African Political Economy 38(128):193–214.

Heyko, Eduardo. 2013. “Strategi Pengembangan Energi Terbarukan: Studi Pada Biodiesel, Bioethanol, Biomassa, Dan Biogas Di Indonesia.” Jurnal Ilmiah Mahasiswa FEB Universitas Brawijaya 2(1).

Institute, Worldwatch. 2007. Biofuels for Transport: Global Potential and Implications for Sustainable Energy and Agriculture. London: Earthscan.

Kementerian Ekonomi Sumberdaya dan Mineral. 2015. Handbook of Energy & Economic Statistics of Indonesia. Jakarta: Kementerian Ekonomi Sumberdaya dan Mineral.

Kere, Eric. 2017. Do Political Economy Factors Matter in Explaining the Increase in the Production of Bioenergy? WIDER Working Paper 2016/25. Helsinki.

Masykur. 2013. “Pengembangan Industri Kelapa Sawit Sebagai Penghasil Energi Bahan Bakar Alternatif Dan Mengurangi Pemanasan Global (Studi Di Riau Sebagai Penghasil Kelapa Sawit Terbesar Di Indoenesia).” Jurnal Reformasi 3(2):96–107.

Mol, P. J. A. 2007. “Boundless Biofuels? Between Environmental Sustainability and Vulnerability.” Sociologia Ruralis 47(4):297–314.

Naylor, R. S. and M. M. Higgnis. 2017. “The Political Economy of Biodiesel in an Era of Low Oil Prices.” Journal of Renewable and Sustainable Energy Reviews 77(C):695–705.

Obidzinski, Krystof, Rubeta Andriani, Heru Komarudin, and Agus Andrianto. 2012. “Environmental and Social Impacts of Oil Palm Plantations and Their Implications for Biofuel Production in Indonesia.” Ecology and Society 17(1):25.

Pacific Biodiesel. 2017. “History of Biodiesel Fuel.” Retrieved December 18, 2017 (http://www.biodiesel.com/biodiesel/history/ ).

Pirard, Romain, Simon Bär, and Ahmad Dermawan. 2016. Tantangan Dan Peluang Pengembangan Bioenergi Di Indonesia. Bogor.

Purwanto, B. A., Erliza Hambali, and Yandra Arkeman. 2015. “Formulating a Long Term Strategy for Sustainable Palm Oil Biodiesel Development in Indonesia: Learning from the Stakeholder Perspective .” in International Conference on Adaptive and Intelligent Agroindustry. Bogor: Department of Agroindustrial Technology, IPB University.

Richardson, J. W., J. L. Outlaw, and M. Allison. 2010. “The Economics of Microalgae Oil.” AgBioForum 13(2):119–30.

Sadewo, H. 2012. “Analisis Kebijakan Mandatory Pemanfaatan Biodiesel Di Indonesia.” Universitas Indonesia.

Sari, Rafika. 2015. “Rencana Kebijakan Crude Palm Oil Supporting Fund.” Info Singkat Ekonomi Dan Kebijakan Publik VII(7).

Schoneveld, George C., Laura A. German, and Eric Nutako. 2011. “Land-Based Investments for Rural Development? A Grounded Analysis of the Local Impacts of Biofuel Feedstock Plantations in Ghana.” Ecology and Society 16(4):10.

Sembiring, M. T., Sukardi, A. Suryani, and M. Romli. 2015. “Biodisel Production Cost Assessment from Different Palm Oil Raw Material as Feedstock.” Industrial Engineering Letters 5(2):13–19.

Sharman, Amelia and John Holmes. 2010. “Evidence-Based Policy or Policy-Based Evidence Gathering? Biofuels, the EU and the 10% Target.” Environmental Policy and Governance 20(5):309–21.

Shurtleff, W. and Akiko Aoyagi. 2017. History of Biodiesel - with Emphasis on Soy Biodiesel (1900-2017). California: Soyinfo Centre Publishing.

Skutsch, Margaret, Emilio De los Rios, Silvia Solis, Enrique Riegelhaupt, Daniel Hinojosa, Sonya Gerfert, Yan Gao, and Omar Masera. 2011. “Jatropha in Mexico: Environmental and Social Impacts of an Incipient Biofuel Program.” Ecology and Society 16(4):11.

Specht, Z. 2011. “Biofuel History and Review.” Energy Discussion Group. Retrieved December 17, 2018 (http://solar.sdsu.edu/EDG_pdf/A Biofuels History and Review.pdf).

Thondhlana, Gladman. 2014. The Local Livelihood Implications of Biofuel Development and Land Acquisitions in Zimbabwe. No. 11. Ontario.

Tomei, J. 2014. “Global Policy and Local Outcomes: A Political Ecology of Biofuels in Guatemala.” University College London.

Upham, Paul and Ben Smith. 2014. “Using the Rapid Impact Assessment Matrix to Synthesize Biofuel and Bioenergy Impact Assessment Results: The Example of Medium Scale Bioenergy Heat Options.” Journal of Cleaner Production.

Upham, Paul, Julia Tomei, and Leonie Dendler. 2011. “Governance and Legitimacy Aspects of the UK Biofuel Carbon and Sustainability Reporting System.” Energy Policy 39:2669–78.

Zilberman, David, Gal Hochman, Scott Kaplan, and Eunice Kim. 2014. “Political Economy of Biofuel. The Magazine of Food, Farm, and Resource Issues.” Choices: The Magazine of Food, Farm, and Resource Issues 29(1):1–6.




DOI: https://doi.org/10.22500/sodality.v7i2.19727


Editorial Office

Sodality : Jurnal Sosiologi Pedesaan

Department of Communication and Community Development Sciences, Faculty of Human Ecology, IPB University

FEMA Building, Wing 1 Level 3 Jalan Kamper, Kampus IPB Darmaga Bogor, 16680, Indonesia

 

Phone. 8425252/8627793; Fax 8627793

P-ISSN: 2302-7517 e-ISSN: 2302-7525

Email : jurnalsodality@apps.ipb.ac.id

 

Creative Commons Licence
Sodality : Jurnal Sosiologi Pedesaan is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.