THE POTENTIAL OF BIOFUEL AS AN ALTERNATIVE TO FOSSIL

FUELS IN INDONESIA AND OTHER DEVELOPING COUNTRIES

Group 5
Presented by :
1. Syilvester S. Pane
2. Windriyansyah
3. Ovan Klinsman O
4. Suparta Sihite
5. Rudi Susanto
6. Sunandar Usman
Definition and Sources of Biofuel
Biofuels are fuels from biomass or materials derived from plants and animals.

References :
https://bakai.uma.ac.id/2022/10/05/manfaat-biofuel-dalam-kehidupan-manusia
References :
https://bakai.uma.ac.id/2022/10/05/manfaat-biofuel-dalam-kehidupan-manusia
COMPARISON OF KINDS OF
BIOFUELS
 Biofuel Development in Developing Countries

Biodiesel product in Asia

(thousand tonnes) Target & Realization of
Biofuels in Indonesia
No. Negara 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

1 China 925 982 1194 1224 1584 1970 2103 2346 2609 2653 2053

2 India 146 149 169 77 123 210 229 268 349 410 505

3 Indonesia References :
44 217 530 469 723 1110 1397 1750 2547 1354 2503
https://www.gaikindo.or.id/wp-content/uploads/2021/11/01.-DJEBTKE-Bahan-Paparan-
GAIKINDO-17Nov21-R3.pdf

4 Korea Selatan 41 78 146 358 511 309 283 321 337 385 404

5 Thailand 87 148 525 656 700 765 1054 1330 1490 1603 1610

Total Asia 1243 1574 2564 2784 3641 4364 5064 6015 7332 6405 7075

Share Indo di Asia 3,54% 13,79% 20,67% 16,85% 19,86% 25,44% 27,59% 29,09% 34,74% 21,14% 35,38%
Pasifik

References :
https://gapki.id/news/3250/perkembangan-biodiesel-di-indonesia-dan-terbesar-di-asia
Potential Utilization of Biofuels Based on Indonesia's Natural Resources

[1] Sumardi, H., Saputra, E., & Guswanto, A. (2018). Prospects of biofuel development in Indonesia. International Journal of Renewable Energy Development, 7(3), 187-193
[2] Kusumaningtyas, W., & Suprihatin, S. (2018). The potential of biofuels in Indonesia: Opportunities and challenges. Energy Procedia, 142
Potential Utilization of Biofuels Based on Indonesia's Natural Resources

[1] Sumardi, H., Saputra, E., & Guswanto, A. (2018). Prospects of biofuel development in Indonesia. International Journal of Renewable Energy Development, 7(3), 187-193
[2] Kusumaningtyas, W., & Suprihatin, S. (2018). The potential of biofuels in Indonesia: Opportunities and challenges. Energy Procedia, 142
Regulatory Support in term of Biofuel Utilization
● The policy for biodiesel development is closely related to the
policy for new and renewable energy development (EBT).
● The effort to develop energy blends began with the issuance of
Presidential Decree (Keppres) Number 46 of 1980 concerning the
National Energy Coordination Agency (BAKOREN).
● The policy of setting blending targets began with the issuance of
Presidential Instruction (Inpres) No. 1 of 2006 concerning the
Provision and Utilization of Alternative Fuels.
● Another policy to promote biodiesel development is by providing
subsidies. Before 2014, the government provided biodiesel
subsidies through the State Revenue and Expenditure Budget
(APBN) allocation.
● As a supporter of the B20 mandatory program policy, the
Ministry of Energy and Mineral Resources (ESDM) then issued
Ministerial Regulation ESDM No. 41 of 2018 concerning the
Provision and Utilization of Biodiesel Type Vegetable Fuels within
the Framework of Financing by BPDPKS. (1)

[1] Transaction Energy Asia. (2020). Utilization and Management of Biofuel (Biodiesel): Learning and Best Practice from Various Countries.
 Profit Potential of Biofuel Compared to Fossil Energy
Allocation plan in Indonesia in 2023:
37,5 million kilo liters of diesel fuel will be allocated in 2023
Biofuel allocation: 15,03 million kilo liters (kl) [8]
Diesel fuel price (import): Rp18.150,-/liter [9]
Biofuel price : Rp11.034,-/liter [10]

Profit:
Saving done by substituting diesel fuel with biofuels (avoided cost)

Total price diesel fuel

Graph of State Exchange Savings in Trillion Rupiah including
potential foreign exchange savings in 2023. [8]
= (Biofuel allocation x Diesel fuel price)
= (15,03 million kl x Rp18.150,- /liter)
= Rp272,79,- trillion
Total price biofuel
= (Biofuel allocation x Diesel fuel price)
= (15,03 million kl x Rp11.034,- /liter)
= Rp165,84,- trillion

Saving:
= Total price diesel fuel – Total price biofuel
= Rp.(272,79 - Rp165,84) trillion
= Rp106,95 trillion
Pros & Cons of Biofuel
Pros:
• Biofuels are sourced from renewable materials.
• Biofuels can reduce greenhouse gas emissions and air
pollution.
• Increasing a country's energy independence.
• New business opportunities.
Cons:
• Requires a large area of land and adequate raw materials.
• Biofuel production requires a large amount of energy and water.
• Production of biofuels still requires more advanced technology.
• Production Cost and Electric Fuel Consumption of biofuel is
higher than fossil.
• Biofuel heat value’s is worse than fossil.

Conclusion:
Eventhough Biofuel has many weaknesses compared to Fossil fuel but it is much more reducing negative
impacts on the environment and as an alternative energy source to rely on as it can be renewed frequently.