TY - GEN
T1 - Managing the Biofuel Industry in Indonesia
T2 - 4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021
AU - Indriani, Dyah Rusty
AU - Setiawan, Andri D.
AU - Hidayatno, Akhmad
N1 - Funding Information:
The authors would like to thank the Indonesia Endowment Fund for Education for the scholarship support to this paper’s first author.
Publisher Copyright:
© 2021 ACM.
PY - 2021/5/25
Y1 - 2021/5/25
N2 - In an attempt to increase domestic palm oil consumption, Indonesia has enforced the mandatory use of 20 per cent blended biofuel (B20). This policy is a part of the government's efforts to reduce oil dependency in energy use and greenhouse gas emissions. Nevertheless, the policy implementation is prone to affect water and food availability as the demand for biofuel crops is expected to grow significantly in the coming years. Correspondingly, a sufficient quantity of water, energy, and food resources is considered essential to achieve the sustainable development agenda. The increasing demand for all three resources undeniably places a great strain on its preservation management. On the other hand, the planning and management of these resources are under dissonant sectoral systems. This issue, which can make the balance between the three resources arduous to realize, needs to be scrutinized. The complex relationship between the three resources reflects a complex dynamic system, needing a holistic approach that considers the integration of Water-Energy-Food (WEF) nexus to understand the system better. Therefore, this study aims to understand the trade-offs between the WEF nexus on the production and utilization of biofuel. For this purpose, a conceptual system dynamics model in the form of Causal Loop Diagram is developed to analyze the complex structure of biofuel development in Indonesia from the WEF nexus perspective. The conceptual model shows that many underlying factors affecting biofuel development should be considered when formulating policy for attaining a sustainable balance between water and food resources.
AB - In an attempt to increase domestic palm oil consumption, Indonesia has enforced the mandatory use of 20 per cent blended biofuel (B20). This policy is a part of the government's efforts to reduce oil dependency in energy use and greenhouse gas emissions. Nevertheless, the policy implementation is prone to affect water and food availability as the demand for biofuel crops is expected to grow significantly in the coming years. Correspondingly, a sufficient quantity of water, energy, and food resources is considered essential to achieve the sustainable development agenda. The increasing demand for all three resources undeniably places a great strain on its preservation management. On the other hand, the planning and management of these resources are under dissonant sectoral systems. This issue, which can make the balance between the three resources arduous to realize, needs to be scrutinized. The complex relationship between the three resources reflects a complex dynamic system, needing a holistic approach that considers the integration of Water-Energy-Food (WEF) nexus to understand the system better. Therefore, this study aims to understand the trade-offs between the WEF nexus on the production and utilization of biofuel. For this purpose, a conceptual system dynamics model in the form of Causal Loop Diagram is developed to analyze the complex structure of biofuel development in Indonesia from the WEF nexus perspective. The conceptual model shows that many underlying factors affecting biofuel development should be considered when formulating policy for attaining a sustainable balance between water and food resources.
KW - biofuel
KW - causal loop diagram
KW - Indonesia
KW - sustainability
KW - system dynamics
KW - water-energy-food nexus
UR - http://www.scopus.com/inward/record.url?scp=85143891269&partnerID=8YFLogxK
U2 - 10.1145/3468013.3468646
DO - 10.1145/3468013.3468646
M3 - Conference contribution
AN - SCOPUS:85143891269
T3 - ACM International Conference Proceeding Series
SP - 488
EP - 492
BT - Proceedings of the 4th Asia Pacific Conference on Research in Industrial and Systems Engineering
PB - Association for Computing Machinery
Y2 - 25 May 2021
ER -