89
Presidential Decree No. 10/2006 established the National Team for Biofuel
Development for poverty and unemployment alleviation which was mandated to
draft the national blueprint for biofuel development. The road map of biofuel development (refer to Table 8.1) in Indonesia identified crude palm oil (CPO) and
Jatropha curcas as the main feed stocks for biodiesel, and sugarcane and cassava as
the main feed stocks for bioethanol (Kusdiana 2006). The Indonesian government
set blending mandates at 10% for biodiesel effective from 2010 and 20% for bioethanol starting in 2015 with the target of producing 17.3 billion liters of bioethanol
and 29 billion liters of biodiesel by 2025. To kick start the program, the government
instructed the national oil company, Pertamina, to start selling biodiesel with a 5%
blend produced from palm oil.
According to the plan, biofuel development was expected to enhance the rural
economy, job creation, and poverty alleviation. The plan expected that 3.5 million
jobs would be created by 2010, which could increase up to 6.9 million jobs in 2025.
In the long run, the generation of energy from locally available renewable sources
through the Energy Self-sufficient Village (ESSV) program and the Special Biofuel
Fig. 8.1 Energy mix trends and targets in Indonesia
Table 8.1 Indonesia’s roadmap for biofuel development
Biofuel Type
Unit
2005–
2010
2011–
2015
2016–
2025
Biodiesel
Percent consumption (of diesel
fuel)
10%
15%
20%
Amount (million kL)
2.41
4.52
10.22
Bioethanol
Percent consumption
(of gasoline)
5%
10%
15%
Amount (million kL)
1.48
2.78
6.28
Bio-oil/bio-kerosene
Amount (million kL)
1
1.8
4.07
Bio-oil/pure plantation oil
(PPO)
Amount (million kL)
0.4
0.74
1.69
Biofuel
Percent consumption
(of energy mix)
2%
3%
5%
Amount (million kL)
5.29
9.84
22.26
Source: Legowo 2009
8 Socioeconomic Impacts of Biofuels in East Asia
Presidential Decree No. 10/2006 established the National Team for Biofuel
Development for poverty and unemployment alleviation which was mandated to
draft the national blueprint for biofuel development. The road map of biofuel development (refer to Table 8.1) in Indonesia identified crude palm oil (CPO) and
Jatropha curcas as the main feed stocks for biodiesel, and sugarcane and cassava as
the main feed stocks for bioethanol (Kusdiana 2006). The Indonesian government
set blending mandates at 10% for biodiesel effective from 2010 and 20% for bioethanol starting in 2015 with the target of producing 17.3 billion liters of bioethanol
and 29 billion liters of biodiesel by 2025. To kick start the program, the government
instructed the national oil company, Pertamina, to start selling biodiesel with a 5%
blend produced from palm oil.
According to the plan, biofuel development was expected to enhance the rural
economy, job creation, and poverty alleviation. The plan expected that 3.5 million
jobs would be created by 2010, which could increase up to 6.9 million jobs in 2025.
In the long run, the generation of energy from locally available renewable sources
through the Energy Self-sufficient Village (ESSV) program and the Special Biofuel
Fig. 8.1 Energy mix trends and targets in Indonesia
Table 8.1 Indonesia’s roadmap for biofuel development
Biofuel Type
Unit
2005–
2010
2011–
2015
2016–
2025
Biodiesel
Percent consumption (of diesel
fuel)
10%
15%
20%
Amount (million kL)
2.41
4.52
10.22
Bioethanol
Percent consumption
(of gasoline)
5%
10%
15%
Amount (million kL)
1.48
2.78
6.28
Bio-oil/bio-kerosene
Amount (million kL)
1
1.8
4.07
Bio-oil/pure plantation oil
(PPO)
Amount (million kL)
0.4
0.74
1.69
Biofuel
Percent consumption
(of energy mix)
2%
3%
5%
Amount (million kL)
5.29
9.84
22.26
Source: Legowo 2009
8 Socioeconomic Impacts of Biofuels in East Asia