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| Fig. 1: Oil palm plantation in Indonesia. (Source: Wikimedia Commons) |
The National Energy Policy in Indonesia declared that by 2025, their goal is to have more than 5% of all energy come from biofuel. [1] In implementing this goal, the government has strived to develop biofuel projects that create jobs for the lower class, overall investing around US $1.4 billion dollars to grow the program. [1] One of the reasons for this increased interest in finding renewable energy is due to the growing demand for transport fuel. [2] In 2016, Indonesia was the 15th largest motor vehicle market. With an increasing demand in transport fuel (43% of the transport energy comes from diesel fuel), the government has shown overwhelming support for biofuel research and implementation. [2]
The main topic of conversation for biofuels in Indonesia is palm oil. In 2014, Indonesia was declared the largest palm oil producer in the world. [3] Together, Indonesia and Malaysia produce 80% of the global palm oil exports, amounting to 19.17 million metric tons. [4] Palm oil has gained global interest as a biofuel due in part to its low production cost. From the creation of palm oil comes palm oil residue, which can be used as renewable energy. [3] Indonesia has been noted for creating a 20% methyl ester out of palm oil, notably one the worlds highest. [5]
One of the issues with palm oil is that as its popularity increases, and the land use is expanded, vast amount of deforestation occurs. With this deforestation comes exposure of peat, which releases 95 tonnes of carbon dioxide per hectare per year. [2] In 2015, palm oil plantations took up 11 million hectares, with 33% of them exposing peat. This amounts to a potential 350 million tonnes of carbon dioxide from peat loss alone. There are also annual forest fires used to clear areas for the plantations that release millions of tonnes of carbon dioxide into the air and destroy wildlife and their homes. [2]
In 2003, in units of 1000 metric tons of palm oil, the United States produced 0 and consumed 171, while Indonesia 7,980 and consumed 3,288. [4] Clearly the US was producing and consuming much more of other oils and fuels for a variety of reasons including population size, development, and industry type. But comparatively, the effort and commitment to palm oil advancement in Indonesia is very clear. This is in line with the idea that globally, biomass accounts for 15% of energy usage, while in developing countries it is as high as 38% of primary energy. [3]
While it is clear that Indonesia is putting a large amount of attention and resources into researching and advancing biofuels, the overall implementation still lags. Issues such as transportation of biofuels, competitively low fossil fuel costs, and fluctuating biofuel prices are still yet to be ironed out. [5] Suggestions for incentivization have been made to help push biofuels to wider usage, such as restoring previously destroyed lands to grow biofuels, and bring money to these communities. [5] Clearly the research and the potential is there, but what matters is action and who or what is impacted.
© Joanna Langner. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.
[1] G. McDonald and A. Rahmanulloh, "Indonesia Biofuels Annual 2018," Global Agriculture Information Network, ID1823, August 2018.
[2] A. Kharina, C. Malins, and S. Searle, "Biofuels Policy in Indonesia: Overview and Status Report," International Council on Clear Air Transportation, August 2016.
[3] R. Fauzianto, "Implementation of Bioenergy from Palm Oil Waste in Indonesia," J Sustain. Devel. Studies 5, 100 (2014).
[4] J. Mattson, C. Sun, and W. W. Koo, "Analysis of the World Oil Crops Market," North Dakota State University, January 2004.
[5] A. Widayati et al., "Exploring the Potential of Bioenergy in Indonesia for Multiple Benefits," Indonesia World Agroforestry Centre, 2017.
