Potential Environmental and Economic Impacts of Biofuel Production for the Local Community: A Case Study

Abstract

Biorefinery technology development in Indonesia especially related to production of biofuel from Crude Palm Oil (CPO) and other biomass from oil palm has already been progressing quite significantly during the last ten years. In 2018, Indonesia has implemented B-20 policy where 20% of diesel is blended with biodiesel from CPO. Likewise, researches on development of enzymes for various application including its application in the production of biofuel from CPO and Oil Palm Empty Fruit Bunches (OP EFB) through an enzymatic process has also been progressing. However, there is not enough research or information on what are the economic and environmental impact of this biofuel production to local community. Does this biofuel production also provide direct and indirect benefit to local community surrounding oil palm plantation and CPO mills? If it does, How? This paper describes what are specific economic and environmental issues facing by local community and how a biofuel production in the surrounding of local community can get environmental and economic and benefits. This case study was conducted in 2018 at 6 villages in Putri Hijau District, North Bengkulu Regency, Bengkulu Province, Indonesia.