IMPACT ANALYSIS OF INDONESIA’S GREEN FUEL PROGRAM

• Main Author: Ahmad Fauzi Arifin, Shobrinah
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/42423
• Institution: Institut Teknologi Bandung

The plantation sector has an important role in economic activities in Indonesia. Palm oil is a commodity sector that give the largest contribution in the plantation sector in Indonesia. Apart from being consumed domestically, the production of palm oil is exported abroad. In recent years Europe as the largest palm oil exporter from Indonesia has made a policy to stop the use of palm oil as the main raw material for biofuels. With this situation Indonesia must increase domestic consumption of palm oil. To fulfill the domestic demand of oil and gas, government has been importing oil and gas in quite large volume each year. The current situation has made the oil and gas trade balance deficit which conduct the deficit of current account balance. To solve these problem government plans to implement the Green Fuel program that purposed to increase the domestic consumption of palm oil and reduce the volume of oil and gas import. This research purpose to analyze the impact of Green fuel program by analyzing the most affected factors that affect the deficit on Current Account Balance and also to analyze the impact of the Green fuel program to the Current Account Balance. In implementing the Green fuel program, the government needs to create a strategic policies. This research also proposed the strategic policies for the upstream and downstream side of Green Fuel program. By using the ordinary least square model the result shows that the oil and gas import and world crude oil prices that affected to the Current Account Balance and by this result is strengthen the objective of Green Fuel program itself. This research also shows that in 2024 government will save about 13,51 Million kiloliters from import of oil and gas or in amount of Rp 89,22 Trillion if the government implement the Green Fuel program. And by analyzing the internal and external environment formulated into several strategies that consist of strategy for the upstream side and the strategy of downstream side of Green Fuel.