SWOT Analysis for Biodiesel Utilization for Diesel Power Plants in Indonesia

Abstract

Indonesia is the largest producer of crude palm oil (CPO) in the world, where biodiesel is a biofuel that is a derivative of CPO and has properties similar to high-speed diesel (HSD). Indonesia is an archipelagic country, where Diesel Power Plants (DPP) are used to meet electricity needs in remote areas. The Strength Weakness Opportunity & Threat (SWOT) approach was used to analyze the utilization of biodiesel for DPP in Indonesia. From the key point, the implementation of biodiesel for DPP has strengths in the form of very large CPO and Biodiesel production capacity in Indonesia, government regulations to encourage biodiesel implementation, and the availability of biodiesel with DPP implementation technology so that it does not require modifications and engine performance degradation. Meanwhile, its weakness is the geographical factor of Indonesia which is an archipelago, and the relatively expensive price of biodiesel. Opportunities that can be maximized are the potential use of biodiesel in DPP, as well as incentives from the Palm Oil Plantation Fund Management Agency. Deforestation issues, photovoltaic power generation trends, and potential policy and regulatory changes can pose a threat to biodiesel implementation.