145
In fact energy security has been identified as a major driver of biofuel production
in Indonesia and Malaysia (Zhou and Thomson 2009). In spite of its significant
domestic fossil fuel endowments, Indonesia is a net importer of crude oil and
expects a strong increase in population. For these reasons there a strong need for
alternative energy sources. The Presidential Decree No. 5 (2006) stated that biofuel
would fulfill 5% of the total energy consumption by 2025 (APEC 2010). The
Ministry of Energy and Mineral Resources stated that 520,000 tons of biodiesel
were produced in 2007 in eight biodiesel plants, with another 15–17 planned for
2011, producing an additional 2 million kL of biodiesel (Zhou and Thomson 2009).
The biofuel mixes B5 (Biosolar) and E5 (Biopertamax) have been available through
the state-owned oil firm Pertamina. In January 2008, the rising international price of
palm oil made Pertamina reduced the percentage of biofuels in its Biosolar and
Biopertamax fuels from 5% to 2.5% (APEC 2010). Currently both countries have
enacted relatively ambitious biodiesel mandates: B10 in Malaysia and B20 in
Indonesia (REN21 2016). However the programs in both countries have been criticized about their effectiveness in boosting national energy security (Putrasari et al.
2016; Rahyla et al. 2017).
Oil palm waste such as empty fruit bunches can also be used as a feedstock for
electricity generation and ethanol and/or biogas production having ripple positive
effects on national and local energy security (e.g., Begum et al. 2013; Jinn et al.
2015). The Indonesian government committed to promote local energy security
through the energy self-sufficient villages (ESSV) program. Bioenergy from oil
palm was one of the energy sources considered, but to our best knowledge the program failed to produce good results, despite its vision to create the capability in
thousands of villages to meet their own energy demand from locally available
renewable resources such as biofuels, hydropower, and wind energy (IGES 2010).
10.2.4.3 Food Security and Access to Food
Biofuels can affect food security through multiple mechanisms related to the four
pillars of food security proposed by the Food and Agricultural Organization (i.e.,
availability, access, utilization, and stability) (Wiggins et al. 2015). For example in
Sect. 10.2.2.2, it was shown how feedstock production can divert food crop production, essentially reducing food availability through a trade-off between two provisioning ecosystem services (i.e., feedstock vs. food) (see also Sayer et al. 2012). At
the same time, the income received from oil palm production and employment in
plantations can be used to buy food, increasing thus household access to food and
improving their nutrition (Euler et al. 2017). Furthermore smallholders can invest
this income to buy agricultural inputs or have better access to inputs due to credit
access as a result of their outgrower contracts functioning as collateral (Cramb and
Sujang 2012; Cramb and McCarthy 2016). Environmental change may also affect
local food production. For example, in areas of the Tripa province, the expansion of
oil palm plantations led to water shortages in swamps, prohibiting the development
of rice paddies (Mulyoutami et al. 2010).
10 Stakeholders’ Perceptions of Ecosystem Services and Human Well-Being Impacts…
In fact energy security has been identified as a major driver of biofuel production
in Indonesia and Malaysia (Zhou and Thomson 2009). In spite of its significant
domestic fossil fuel endowments, Indonesia is a net importer of crude oil and
expects a strong increase in population. For these reasons there a strong need for
alternative energy sources. The Presidential Decree No. 5 (2006) stated that biofuel
would fulfill 5% of the total energy consumption by 2025 (APEC 2010). The
Ministry of Energy and Mineral Resources stated that 520,000 tons of biodiesel
were produced in 2007 in eight biodiesel plants, with another 15–17 planned for
2011, producing an additional 2 million kL of biodiesel (Zhou and Thomson 2009).
The biofuel mixes B5 (Biosolar) and E5 (Biopertamax) have been available through
the state-owned oil firm Pertamina. In January 2008, the rising international price of
palm oil made Pertamina reduced the percentage of biofuels in its Biosolar and
Biopertamax fuels from 5% to 2.5% (APEC 2010). Currently both countries have
enacted relatively ambitious biodiesel mandates: B10 in Malaysia and B20 in
Indonesia (REN21 2016). However the programs in both countries have been criticized about their effectiveness in boosting national energy security (Putrasari et al.
2016; Rahyla et al. 2017).
Oil palm waste such as empty fruit bunches can also be used as a feedstock for
electricity generation and ethanol and/or biogas production having ripple positive
effects on national and local energy security (e.g., Begum et al. 2013; Jinn et al.
2015). The Indonesian government committed to promote local energy security
through the energy self-sufficient villages (ESSV) program. Bioenergy from oil
palm was one of the energy sources considered, but to our best knowledge the program failed to produce good results, despite its vision to create the capability in
thousands of villages to meet their own energy demand from locally available
renewable resources such as biofuels, hydropower, and wind energy (IGES 2010).
10.2.4.3 Food Security and Access to Food
Biofuels can affect food security through multiple mechanisms related to the four
pillars of food security proposed by the Food and Agricultural Organization (i.e.,
availability, access, utilization, and stability) (Wiggins et al. 2015). For example in
Sect. 10.2.2.2, it was shown how feedstock production can divert food crop production, essentially reducing food availability through a trade-off between two provisioning ecosystem services (i.e., feedstock vs. food) (see also Sayer et al. 2012). At
the same time, the income received from oil palm production and employment in
plantations can be used to buy food, increasing thus household access to food and
improving their nutrition (Euler et al. 2017). Furthermore smallholders can invest
this income to buy agricultural inputs or have better access to inputs due to credit
access as a result of their outgrower contracts functioning as collateral (Cramb and
Sujang 2012; Cramb and McCarthy 2016). Environmental change may also affect
local food production. For example, in areas of the Tripa province, the expansion of
oil palm plantations led to water shortages in swamps, prohibiting the development
of rice paddies (Mulyoutami et al. 2010).
10 Stakeholders’ Perceptions of Ecosystem Services and Human Well-Being Impacts…