INVESTIGATING THE COST EFFECTIVENESS OF BIODIESEL DISTRIBUTION IN INDONESIA
The implementation of biodiesel in Indonesia has been regarded as one of the main strategies to improve country’s energy security equally and equitably. However, as the largest archipelago country in the world, the activity in distributing their biodiesel production bears a key problem. The complex...
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Faculty of Economics, University of Tuzla
2023-05-01
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| Series: | Economic Review |
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| Online Access: | http://er.ef.untz.ba/index.php/er/article/view/23 |
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| author | Herbert Wibert Victor Hasudungan Elis Heviati Sulthon Sjahril Sabaruddin Sigit Hargiyanto |
| author_facet | Herbert Wibert Victor Hasudungan Elis Heviati Sulthon Sjahril Sabaruddin Sigit Hargiyanto |
| author_sort | Herbert Wibert Victor Hasudungan |
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The implementation of biodiesel in Indonesia has been regarded as one of the main strategies to improve country’s energy security equally and equitably. However, as the largest archipelago country in the world, the activity in distributing their biodiesel production bears a key problem. The complexity of delivering biodiesel from the supply point to the blending terminal of gasoil might result in cost inefficiency, which in turn will escalate the government funding of biodiesel incentives. This paper aims to both evaluate and formulate the Indonesian biodiesel transportation costs in all routes using either trucking or shipping mode. Based on primary data and information obtained from experts, we found that the most dominant factors that affect the shipping distribution cost are the size of the ship and its activities (such as voyage, ballast, loading, discharge, waiting, and buffer), whilst for the trucking mode, the dominant factors are both its corresponding operational costs and investment costs. Given that fuel prices fluctuate periodically, we also argue that the cost differences between the regulated and formulated reference may arise due to i) the data inaccuracy of the diesel fuel consumption and ii) specific terms outlined in the agreement between the corresponding transporters and suppliers.
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| format | Article |
| id | doaj-art-5ef2f3fe350740be84710fbf33900768 |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2023-05-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-5ef2f3fe350740be84710fbf339007682025-02-10T00:30:44ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2023-05-01211INVESTIGATING THE COST EFFECTIVENESS OF BIODIESEL DISTRIBUTION IN INDONESIAHerbert Wibert Victor Hasudungan0Elis Heviati1Sulthon Sjahril Sabaruddin2Sigit Hargiyanto3Universitas Islam Internasional Indonesia and Ministry of Energy and Mineral Resources of Republic of Indonesia, IndonesiaMinistry of Energy and Mineral Resources of Republic of IndonesiaMinistry of Foreign Affairs of the Republic of Indonesia,Ministry of Energy and Mineral Resources of Republic of Indonesia, Indonesia The implementation of biodiesel in Indonesia has been regarded as one of the main strategies to improve country’s energy security equally and equitably. However, as the largest archipelago country in the world, the activity in distributing their biodiesel production bears a key problem. The complexity of delivering biodiesel from the supply point to the blending terminal of gasoil might result in cost inefficiency, which in turn will escalate the government funding of biodiesel incentives. This paper aims to both evaluate and formulate the Indonesian biodiesel transportation costs in all routes using either trucking or shipping mode. Based on primary data and information obtained from experts, we found that the most dominant factors that affect the shipping distribution cost are the size of the ship and its activities (such as voyage, ballast, loading, discharge, waiting, and buffer), whilst for the trucking mode, the dominant factors are both its corresponding operational costs and investment costs. Given that fuel prices fluctuate periodically, we also argue that the cost differences between the regulated and formulated reference may arise due to i) the data inaccuracy of the diesel fuel consumption and ii) specific terms outlined in the agreement between the corresponding transporters and suppliers. http://er.ef.untz.ba/index.php/er/article/view/23biodieselIndonesiarenewable energytransportation costenergy distribution |
| spellingShingle | Herbert Wibert Victor Hasudungan Elis Heviati Sulthon Sjahril Sabaruddin Sigit Hargiyanto INVESTIGATING THE COST EFFECTIVENESS OF BIODIESEL DISTRIBUTION IN INDONESIA Economic Review biodiesel Indonesia renewable energy transportation cost energy distribution |
| title | INVESTIGATING THE COST EFFECTIVENESS OF BIODIESEL DISTRIBUTION IN INDONESIA |
| title_full | INVESTIGATING THE COST EFFECTIVENESS OF BIODIESEL DISTRIBUTION IN INDONESIA |
| title_fullStr | INVESTIGATING THE COST EFFECTIVENESS OF BIODIESEL DISTRIBUTION IN INDONESIA |
| title_full_unstemmed | INVESTIGATING THE COST EFFECTIVENESS OF BIODIESEL DISTRIBUTION IN INDONESIA |
| title_short | INVESTIGATING THE COST EFFECTIVENESS OF BIODIESEL DISTRIBUTION IN INDONESIA |
| title_sort | investigating the cost effectiveness of biodiesel distribution in indonesia |
| topic | biodiesel Indonesia renewable energy transportation cost energy distribution |
| url | http://er.ef.untz.ba/index.php/er/article/view/23 |
| work_keys_str_mv | AT herbertwibertvictorhasudungan investigatingthecosteffectivenessofbiodieseldistributioninindonesia AT elisheviati investigatingthecosteffectivenessofbiodieseldistributioninindonesia AT sulthonsjahrilsabaruddin investigatingthecosteffectivenessofbiodieseldistributioninindonesia AT sigithargiyanto investigatingthecosteffectivenessofbiodieseldistributioninindonesia |