Indonesian CPO availability analysis to support food and energy security: a system dynamic approach

Abstract

The development of biofuels could be a solution to overcome the energy problem. One of biofuel that has the potential to be developed, namely palm oil biodiesel that is also the raw material for food. As a provider of CPO raw materials, the production of palm biodiesel could trigger competitions, from biofuels demand growth and utilization of agricultural resources. Thus, it needs to be analyzed to determine the adequency of CPO supply to fulfill the need of food and policy recomendation which sets the development of palm oil biodiesel can be synergies with food need especially for the supply of raw material CPO. To obtain the optimal policy in the synergy between the raw material of CPO for food and energy is a need to establish some policy scenarios that allow to be applied and then chosen the best policy alternative of all scenarios. The purpose of this research were to : 1) analysis the availability of CPO to meet the needs of food and energy, 2) provide policy recommendation with regard biodiesel development of food security. The model made used system dynamic method. Several scenarios that used in the model are: 1) existing condition, 2) The scenario increase biodiesel production capacity and increase land productivity, 3) reduction scenario CPO export by 30%, 4) scenario use othe raw material for biodiesel by 20%. The simulation results showed the availability of CPO raw materials would answer all needs of both food and biodiesel when there was an increase in productivity, diversification of raw materials, and also a reduction in palm oil exports. It was needed an integrated policy from upstream to downstream along with the consistency of implementation. Policy suggestions that could be considered were increased productivity through agricultural intensification, enforcement disincentive policies of CPO to exports, and development of non-CPO biodiesel raw materials and development of renewable energy.