The Determinants of Biodiesel Export in Indonesia

Andika Pambudi, Eka Puspitawati, Nursechafia Nursechafia


This study investigates the competitiveness of Indonesian biodiesel export among the top seven of biodiesel trader countries in the world, as well as the factors that determine export for Indonesian biodiesel. Applying Revealed Comparative Advantage (RCA) analysis, the results show that Indonesia has good competitiveness of biodiesel in the world. Using secondary data, the results of the gravity model indicate that distance of trade destination countries harms the Indonesian biodiesel export. Meanwhile, price, exchange rate, and GDP have a positive effect on the export. Based on the results of this study, the government of Indonesia should focus on the development of the biodiesel industry, since the increasing importance of biodiesel as alternative energy in the world


biodiesel; export; competitiveness

Full Text:



Anggara, R., & Widyastutik. (2016). Non Tarif Barriers and Factors That Influence The Indonesian Cocoa Export to Europe. Signifikan: Jurnal Ilmu Ekonomi, 5(1), 1-14.

APROBI. (2016). Biodiesel, Policies, and Prospects: Bioenergy Opportunities, Challenges, and Development in Indonesia. Presented on BAPPENAS-CIFOR Workshop, Jakarta 31 May 2016.

Arip, M. A., Yee, L. S., & Feng, T. S. (2013). Assessing the Competitiveness of Malaysia and Indonesia Palm Oil Related Industry. World Review of Business Research, 3(4), 138-145.

Bender, S., & Li, K.W. (2002). The Changing Trade and Revealed Comparative Advantages of Asian and Latin American Manufacture Exports. Economic Growth Center Discussion Paper Series, 843. US: Yale University Pr.

Demirbas, A. (2007). Importance of Biodiesel as Transportation Fuel Energy Policy. Energy Policy, 35(9), 4661-4670.

Dewanta, A.S., Arfani, R. N., & Erfita. (2016). Elasticity and Competitiveness of Indonesia’s Palm Oil Export in India Market. Economic Journal of Emerging Markets, 8(2), 148-158.

Gorter, H., Dusan, D., & David R, J. (2015). The Economics of Biofuel Policies. Impacts on Price Volatility in Grain and Oilseed Markets. New Jersey: Palgrave Macmillan.

Hillman, A. L. (1980). Observations on the Relation Between Revealed Comparative Advantage and Comparative Advantage as Indicated by Pre-Trade Relative Prices. Weltwirtschattliches Archiv, 116, 315-332.

Junginger, M., De Wit, M., Sikkema ,R., & Faaij, A. (2008). International Bioenergy Trade in The Netherlands. Biomass Bioenergy, 32(8), 672–687. j.biombioe.2007.10.018.

Junginger M., Van Dam, J., Zarrilli, S., Mohamed, F. A., Marchal, D., & Faaij, A. (2011). Opportunities and Barriers for International Bioenergy Trade. Energy Policy, 39(4), 2028–2042.

Kumar, S., Shrestha, P., & Salam, A. (2013). A Review of Biofuel Policies in The Major Biofuel Producing Countries of ASEAN: Production, Targets, Policy Drivers and Impact. Renew Sustain Energy Rev, 26, 822–836. 2013.06.007.

Larmers, P., Hamelinck, C., Junginger,M., & Faaij, A. (2011). International Bioenergy Trade: A Review of Past Developments in The Liquid Biofuel Market. Renew Sustain Energy Rev, 15(6), 2655–2676. 01.022.

Larmers P., Junginger, M., Hamelinck, C., & Faaij, A. (2012). Developments in International Solid Biofuel Trade. An Analysis of Volumes, Policies, and Market Factors. Renew Sustain Energy Rev, 16(5), 3176–3199.

Leduc, S., Karthikeyan, N., Dotzauer, E., McCallum, I., & Obersteiner, M. (2009). Optimizing Biodiesel Production in India. Applied Energy, 86(Supplement 1), S125-S131.

Lewis, J.I., & Wiser, R.H. (2007). Fostering A Renewable Energy Technology Industry: An International Comparison of Wind Industry Policy Support Mechanisms. Energy Policy, 35(3), 1844–1857.

Mekhilef, S., Siga, S., & Saidur, R. (2011). A Review on Palm Oil Biodiesel as a Source of Renewable Fuel. Renewable and Sustainable Energy Reviews, 15(4), 1937–1949.

Mukherjee, I., & Sovacool, B. K. (2014). Palm Oil-Based Biofuels and Sustainability in Southeast Asia: A Review of Indonesia, Malaysia, and Thailand. Renewable and Sustainable Energy Reviews, 37, 1–12.

Nakada, S., Saygin, D., & Gielen, D. (2014). Global Bioenergy: Supply and Demand Projections. A Working Paper for REmap 2030, IRENA.

Papilo, P., Marimin., Hambali, E., & Sitanggang, I. S. (2018). Sustainability Index Assessment of Palm Oil-Based Bioenergy in Indonesia. Journal of Cleaner Production, 196, 808-820.

Veeramani, C., & Saini, G.K. (2010). Impact of ASEAN-India FTA on India’s Plantation Commodities: A Simulation Analysis. Indira Gandhi Institute of Development Research, Working Paper, 2010(004).

Wijaya, H. (2015). Palm Oil Biodiesel Policy Using Method of Regulatory Impact Analysis and Dynamic System Model. Unpublished Thesis. Bogor: Bogor Agricutural University.

Wulandari, N. (2009). Analysis of Determinant Factors of Indonesian Exports of Crude Palm Oil, Its Derivative Products, and Crude Palm Kernel Oil to China. Unpublished Thesis. Depok: Universitas Indonesia.

Zafeiriou, E., Arabatzis, G., Tampakis, S., & Soutsas, K. (2014). The Impact of Energy Prices on The Volatility of Ethanol Prices and The Role of Gasoline Emissions. Renewable and Sustainable Energy Reviews, 33, 87-95. /j.rser.2014.02.001.

DOI: Abstract - 0 PDF - 0


  • There are currently no refbacks.

View My Stats