Biodisel Production Cost Assessment from Different Palm Oil Raw Material as Feedstock

Abstract

Biodiesel production system in Indonesia shows its volatility as Indicated by the fact that some biodiesel industries ceased their production activities because unreasonable high production costs due to the fluctuating selling price. The purpose of this study was to analyze and get the production cost to obtain the selling price policy based approach in biodiesel production system. Production cost structure is determined from various raw materials and the process technology used. The raw material specifications vary from different palm oil based products with different free fatty acids (FFA)  that could be produced as biodiesel. There are CPO and refined oil. Grand InzioTechnology is one of the established technology chosen because of it’s ability to process all raw materials with various FFA content. According to the cost analysis, it shows that variable costs contribute higher component that constitutes the production costs. According to the production costs without considering the raw material price, the biodiesel production cost from CPO is Rp1,115 per liter, RBDPO Rp 963 per liter, RBD olein Rp 965 per liter, RBD stearin Rp 950 per liter and PFAD Rp 1.130 per liter. The minimum selling price is RBD PFAD by Rp 9.414 per liter.

Keywords: Palm Oil, Production Cost, Biodiesel, Selling Price