42
J. Chen et al.
Fig. 1.2 Market of oleochemicals in forms of fatty acid products
Fig. 1.3 Market of oleochemicals in forms of fatty alcohol
transportation, industry, commercial and power plant. This regulation stipulates a
mandatory use of other types of fuel in a gradual and sustainable way by commercial
bodies which hold a business license and are direct users of fuel by utilizing and
prioritizing locally produced biofuel.
Based on the mandatory use of biodiesel, in 2010, biodiesel production was
460,180 kiloliters which was used to fulfill the need of transportation sector (236,502
kl), non-transportation sector (88,650 kl), industrial and commercial sectors (48,495
kl) and power plant sector (86,533 kl). It is estimated that the use of biodiesel is
increasing and reaches 6,866,983 in 2025.
The Indonesian palm oil industry is developing. However, the development only
occurs in its upstream industry. The development of the palm oil derivative industry
occurs so slowly that Indonesia’s palm oil export is still dominated by CPO. This