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Abstract
The biodiesel industry is a downstream palm oil industry group that is projected to continue to grow in Indonesia. In addition to meeting national needs in order to fulfill the mandatory biodiesel acceleration program B20 in Year 2020 and B40 in Year 2050, the penetration of Indonesian palm oil biodiesel export market to the EU is more open with RED enforcement. Nevertheless, Indonesia’s downstream palm oil industry including biodiesel industry is faced with various negative campaign issues as it has not achieved the value of GHG Emission saving default value of 35 percent to be called an environmentally friendly product. The purpose of this study is to identify the dominant global environmental aspects and impacts of the biodiesel production process from Indonesian palm oil and to provide improvement recommendations that encourage the reduction of greenhouse gas emissions in the transportation sector of national biodiesel products. The sustainability of palm oil biodiesel industry is evaluated using life cycle impact assessment method. The research is done by combining quantitative and qualitative approach. The field survey was conducted in oil palm plantation companies, crude palm oil producers, and biodiesel producers located in North Sumatra. Improvement recommendations for improving the sustainability of Indonesia’s downstream palm oil industry, especially the biodiesel industry from crude palm oil raw materials, refers to best practices and expert discussions.
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Details
1 Master of Industrial Engineering Program, Universitas Mercu Buana, Jakarta.
2 Computer Science, Universitas Pakuan, Bogor
3 Industrial Engineering Department, Universitas Sumatera Utara, Medan