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19th European Roundtable on Sustainable Consumption and Production – Circular Europe for Sustainability: Design, Production and Consumption

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Value chain analysis of sustainable Indonesia palm oil industry on the polyester polyols pathway

Since the year 2015 Indonesia strives to enhance the value chain and sustainability of palm oil industry in Indonesia. One of the downstream product of palm oil is polyurethane, polyol raw material as can be. In addition to the development of the palm oil industry value chain in Indonesia, also need to be improved industrial supply chain downstream from the aspect of availability of renewable raw materials as feedstock alternatives for petroleum. Polyurethane industry is one of the petrochemical industry that allows the use of raw materials of palm oil, namely polyester polyol which is renewable. The purpose of this research is to analyses the value chain palm oil industry of polyester polyol, making known the chain density related to many other industries in Indonesia. The results showed that the density of the value chain are expected to provide accelerated development of industrial polyester polyols in Indonesia, as part of downstream palm oil industry. Value chain analysis of palm oil and downstream dependencies with polyurethane industry value chain based on the assessment of stakeholder perceptions in numeric then transformed into fuzzy linguistic labels. The results showed that the production of polyols has added a new pathway that can extend the industrial chain downstream palm oil. The analysis of the four factors i.e. drivers, barrier, leverage, and the ballast has been successfully used to map the industrial value chain polyols on the palm oil. The extension of the oil palm industry value chain on the industry can unite, polyols industry production chain with the petrochemical industry, in this case is polyurethane, which can at least help the substitution of raw materials. Perceptions of stakeholders towards the role of polyols industry in two ways, namely palm oil industry chain with the polyurethane industry indicates that there is an enormous interest of the intersection. Almost the entire perception of the role of the main activities of the value chain in the polyurethane industry can be covered by the role of the main activities of the value chain in the industrial palm oil polyols. Both of the value chain can be said to co-exist and complement. The production of polyester polyols can be absorbed by the polyurethane industry needs.

Sawarni Hasibuan
Universitas Mercu Buana
Indonesia

Hermawan Thaheer
Universitas Pakuan
Indonesia

Juliza Hidayati
Universitas Sumatera Utara
Indonesia

 


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