As the world's largest Crude Palm Oil (CPO) producer, Indonesia uses CPO as raw material for biodiesel. A number of policies have been designed by the Indonesian government to support adoption of biodiesel. However, the role of energy alternatives faced complex problems. Agent-based modeling can be applied to predict the impact of policies on the actors in the business process to acquire a rich discernment of the behavior and decision making by the biodiesel industries. This study evaluates government policy by attending at the adoption of the biodiesel industry in the tender run by a government with the intervention of two policy options biodiesel energy utilization by developing an agent-based model. The simulation result show that the policy of adding the biodiesel plant installed capacity has a good impact in increasing the production capacity and vendor adoption in the tender. Even so, the government should consider the cost to be incurred and the profits for vendors, so the biodiesel production targets can be successfully fulfilled.
|Journal||IOP Conference Series: Earth and Environmental Science|
|Publication status||Published - 28 Nov 2017|
|Event||2017 3rd International Conference on Energy, Environment and Materials Science, EEMS 2017 - Singapore, Singapore|
Duration: 28 Jul 2017 → 30 Jul 2017