Journal of Energy and Power Engineering 7 (2013) 524-536 D DAVID PUBLISHING

Implementation Application of Alternative Fuel for Land

Transportation Sector in Indonesia Based on Other
Countries Experience
Mirza Mahendra, Sutrasno Kartohardjono and Yuswan Muharam
Department of Chemical Engineering, Universitas Indonesia, Depok 16424, Indonesia

Received: June 24, 2012 / Accepted: September 07, 2012 / Published: March 31, 2013.

Abstract: The usage of alternative fuel as a substitute of oil fuel for transportation sector in developed countries has been commonly
implemented in order to decrease crude oil consumption, where in a few years back, the crude oil price is constantly increasing. In
addition, global warming issue becomes one of reasons that motivate many countries to switch for a cleaner energy usage. As a
country that has a relatively big reserve of natural gas, its appropriate natural gas could minimize subsidized oil fuel and also
financing countrys burden if Indonesia is optimizing the usage of energy resources. This paper will discuss about the background of
gas fuel usage for road transportation sector in Indonesia, review of alternative fuel usage, the gas fuel usage status in Indonesia and
gas usage recommendation for land transportation sector in Indonesia based on other countries experiences.

Key words: Alternative fuel, cleaner energy, gas fuel, land transportation.

1. Introduction three kinds (gasoline, kerosene and solar).

Based on subsidized oil fuel data on 2011, land
Oil fuel is one of a vital commodity that is needed
transportation sector is the majority user with 97.33%
by people in order to do daily life and economy
from total volume of subsidized oil fuel. Household
activity. Until now, Indonesia still provides subsidized
sector uses 2.25% and small business uses 0.2%.
oil fuel for their society. Subsidy of oil fuel that has
Whereas water transportation and fishery use 0.12%
been implemented nowadays was basically a subsidy
and 0.11%, respectively from total volume of
of price. The subsidy of oil fuel is the difference of
subsidized oil fuel in 2011. Fig. 1 explains the
total amount of money that granted by government
percentage of subsidized oil fuel usage in 2011.
from their economical price with the stated price,
Based on national social economy survey in 2008
therefore, it will be affordable for people. The subsidy
(Indonesian Central Bureau of Statistics) and World
of price is a certain amount of money that government
Bank (2010), 25% group of household with the
pays to cover the difference between economical
highest earning (expenses) per month receives
prices with stated price.
subsidys allocation for 77%. Meanwhile, 25%
The subsidy of fuel oil is going on for years, where
household group with the lowest earning (expenses)
since 1999, the variety of subsidized oil fuel started to
per month only receives around 15%. This fact shows
lessen from seven kinds of oil fuel (avtur, avgas, fuel
that after all this time the usage of subsidized oil fuel
oil, diesel oil, solar oil, gasoline and kerosene) to only
is not yet a correct decision. The group of people that
Corresponding author: Sutrasno Kartohardjono, Ph.D., receives the most subsidized oil fuel is from
professor, research fields: CO2 absorption, hollow fiber middle-high group of people. Fig. 2 shows the
membrane for water purification. E-mail:
sutrasno@che.ui.ac.id. percentage of household group subsidies recipients.
 Implementation Application of Alternative Fuel for Land Transportation 525
Sector in Indonesia Based on Other Countries Experience

Household SmallBusiness
Sector
0.20%
2.25%

Water Fishery
Transportation 0.11%
0.12%

Land
Transportation
97.33%

Fig. 1 Percentage of subsidized oil fuel usage in Indonesia in 2011 [1].

100
high. In 2009, Indonesia was officially resigned from
OPEC (Organization of the Petroleum Exporting
Countries) membership and became an oil importer
75
Subsidies recipients (%)

country. Fig. 3 shows Indonesias crude oil production

77%
50
25
25 % highest
25 % lower
15%
0
cumulative household group (%)
Fig. 2 Percentage of household group subsidies recipients [1].
Indonesian government has given subsidized oil
fuel for the last couple of years (2006-2011) in the
amount of IDR (Indonesian Rupiah) 579.7 trillion
(2006: IDR 64.2 T; 2007: IDR 83.8 T; 2008: IDR
139.1 T; IDR 45.0 T; 2010: IDR 83.4 T; 2011: IDR
165.2 T). This condition is giving effect on decreasing
of budget allocation to finance social programs and
infrastructure developments, even the amount of
subsidized oil fuel budget is greater than social
program budget, as it is shown in Word Bank data that
countrys budget in 2008 for social programs was only
half of subsidized oil fuel.
In line with recent developments, Indonesian raw
oil production is decreasing and raw oil prices
constantly increasing, thus subsidized oil fuel figure is
from the year of 2000 until 2010.
In conjunction to suppressed rapid development of
oil fuel consumption, government has taken source of
energy diversification policy in every activity.
Industrial and land transportation sectors are the most
important sector in supporting economical activity
smoothness. These sectors need a great amount of oil
fuel. The success of reaching subsidized oil fuel target
in these two sectors will be of importance for the
success of energy diversification effort nationally.
The alternative usage of fuel besides oil fuel is
natural gas. As a country has a large reserve of natural
gas, it would be appropriate if Indonesia is using that
source of energy optimally and no longer oriented to
energy export, due to lessen subsidies of oil fuel
which at the end could help to cut down nations fund
burden.
Based on Directorate General of Oil and Gass data,
Indonesias gas reserves status on January 1, 2009 has a
total of 159.63 TSCF (trillion standard cubic feet).
The largest reserve is in Natuna as much as 52.14
TSCF. Sumatera has gas reserve 35.12 TSCF, Java
8.98 TSCF, Kalimantan 21.78 TSCF, Sulawesi 2.68
TSCF, Maluku and Papua 38.93 TSCF. Fig. 4 shows
gas reserves map in Indonesia.
526 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience

1,500 1,328 1,294 1,212

CrudeOilProduction 1,098 1,036 1,003
957 899 931 944 955
(x1000bbl/day) 1,000

500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year
Fig. 3 Indonesias crude oil production from the year of 2000 until 2010 [1].

Fig. 4 Indonesia gas reserve status on January 1, 2009 [1].

Variety of gas fuel for vehicles that has been used
in Indonesia is CNG (compressed natural gas) and
LGV (liquefied gas for vehicle). CNG is gas fuel
made from metana compression (CH4), with 200 bar
pressure. CNG can be used in areas which has gas
reserve or pipe system of natural gas. LGV is gas fuel
which formulated for vehicles with spark ignition
engine, it consists of mixture of propane (C3) and
butane (C4). LGV spesification is almost similar with
LPG (liquefied petroleum gas) specification for
household purposes, the differences are only in the
composition ratio of propane (C3) and butane (C4).
Propane (C3) and butane (C4) ratio in LGV product is
51:49 with preasure ranging from 8-12 bar. LGV is
more flexible to be used in areas far from gas source
or without natural gas pipe.
This paper disscusses about the usage of gas fuel
background for land transportation sector in Indonesia,
internasional journals review of alternative fuel usage,
the gas fuel usage status in Indonesia and
recomendation of gas usage for land transportation
sector in Indonesia based on other countries experience.
2. A Review on Alternative Fuel Usage
Alternative fuel usage is a strategy that every
country must do, especially for developed country.
Some of the reasons that supported the idea of
alternative fuel strategy are a high rise of the world oil
price, crude oil availability is limited, environmental
problem and sustainable energy. In few writings,
which are already published are some discussions
related to it.
The necessity to reduce oil consumption and green
house gases is giving a fundamental change toward
more efficient, advanced vehicles and fuels in the
transportation sector. Andress et al. [2] discuss about
 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience
the latest status of small vehicles in United State and
policies to increase fuel efficiency, electric vehicle
and continuously of bio fuel usage. This paper also
discusses about expenditure, technical, infrastructure
and market barrier for alternative technology
implementation, which are bio fuel vehicle, diesel, gas
fuel, hybrid electric and fuel cell. A few conclusions
in this writing are as follows:
Economical fuel and environmental problem
inspired the changes on transportation sector policy
and also cut down energy usage consumption and
green house gas emission;
Funding is needed for investigation of
technology development on vehicle machine
production, fuel, fuel station and electrical energy
saving;
CNG vehicles growth in United State is not
quite high due to the limitation number of CNG
station;
Subsidy from government is needed to develop
alternative fuel together with the infrastructure;
GHG (green house gas) reduction from electric
drive propulsion system depends on feedstock source.
For grid-supplied electricity, coal-generated electricity
increases GHG emission relative to gasoline while
natural gas-based electricity decrease GHG emission.
Electricity that resulted from renewable resources and
nuclear can produce small amount of green house gas
emission. Hydrogen produced from processed natural
gas can cut down the green house gas emission
content compared to gasoline. Whereas, hydrogen
resulted from coal gasifying is increasing green house
gas emission except carbon capture is executed.
Ong et al. [3] analyzed the energy pattern and
emission for road transportation sector in Malaysia.
Discussion of prospective policies such as fuel
economizing standard and switching fuel to natural
gas and biodiesel is summarized in this study. In
conclusion, writers view that policy compilation has
to be done immediately in conjunction to energy
demand and usage also to decease emission in road
527
transportation sector. With switching
the fuel usage to renewable fuel, it will be able to
suppress the growth of fossil fuel usage. Malaysia has
a big potential to develop palm oil become bio-diesel
raw materials. To implement renewable energy usage,
policy and infrastructure need to be done.
Xie et al. [4] developed a model that integrated to
calculate economizing of vehicle fuel usage and
emission using traffic emission model approach. This
case study is using a road network model in
Greenville, South Carolina. For each of fuel variety,
emission produced and fuel usage is evaluated based
on market share. The result from this writing shows
CNG usage as bus fuel is increasing CO2 emission
level; this result is contrary with previous study. It
also shows that private vehicle using electricity is
effectively decreasing NOx and CO2 emission content
also energy consumption.
The fast growth of vehicle in China resulted in
increasing on crude oil usage. On the study done by
Ou et al. [5], it analyzed future status of energy
demand and green house gas emission on Chinas land
transportation sector, and also analyzed the success of
alternative fuels usage. There are four specific
scenarios used to describe future situation where some
of alternative fuel are implemented. Energy demand
and green house gas emission reached as much as 734
million-ton equal to oil and 2,384 million-ton CO2 in
2050 on BAU (business as usual) scenario, where that
amount is 5.6 times bigger from year 2007. Writers
recommendation in implementing the policy in the
future is to support bio fuels usage continuously on
vehicles and development of coal basis fuel with low
carbon emission technology.
Das and Ahlgren [6] focused on energy system
development in three ASEAN countries that are
Indonesia, Philippine and Vietnam. Energy
infrastructure at those countries is in rapid growth
process, thus technology selection is critical. This
article analyzed the roles of technology in exploiting
resources with focused on energy safety and
528 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience
environmental conditions surround it. Main focus is
on electricity sector. It is stated in the article that there
is a big potential market for the usage of
environmental friendly technology in those three
ASEAN countries. If used, this technology will bring
advantages such as lessen the needs of primary energy,
cut down investment on electrical sector, decrease on
importing primary energy, decrease on CO2, decrease
on energy system cost and low of electrical cost.
In Europe, gas fuel vehicles only play a small role
since the dependency of most European countries of
imported gas and low of infrastructures (i.e., gas fuel
station). In contrary with Latin America and Asian
countries, gas fuel vehicles are common. In few years
back, issue regarding environment and high on oil
price stimulates natural gas usage as vehicles fuel in
Europe. Government in European countries develops
incentive (i.e., tax cut of) to increase gas fuel vehicles
usage, hybrid and electric. Problems on hybrid
technology and electric vehicle still need technology
development. In contrary, the usage of natural gas as
fuel on conventional vehicle engine is commonly used.
Thus, natural gas usage as fuel on vehicles needs to be
promoted in Europe. This analysis is stated on Engerer
and Horn [7] journal.
Big cities have increased in energy usage, green
house gas emission and ownership of personal vehicle.
Poudenx [8] in his/her writing explained a short
journey of 12 big cities with variety of policy for
personal vehicle usage limitation and judging their
success from energy usage and green house gas
emission. Writers debate of policies that targeted to
lessen personal vehicle usage is failed, since they are
not compared the reality of human tendention to
accessibility and comfortability. That policy failed to
be applied to attract costumer with lower quality
services. Demand to accessibility and comfortability
would probably continue to grow with the increment
of life standard where ignorance of environment
impact occurred. Writer recommends to increase
competitive ability of alternate models with investing
to non-motorized category and transportation system
plan that able to compete with personal vehicle on
service quality, together with increasing of
environmental performance.
Zhang [9] analyzed kinds of policies respond that
made in Asia, nationally, regionally and
internationally in relation with the challenges of
environment sympathy. Asia has experienced a fast
economical growth in the last two decades. Therefore,
it caused higher cost of environmental consequence.
In national level responds context, special attention is
given to few issues that are coordination between local
government and headquarter, market that rely on
environmental instrument and industrial policy,
emission standard and fuel quality. In conclusion, the
authors stated that correct policy is strengthened with
national level cooperation. Regional and international
level will guarantee economic growth continuously in
Asia area with still focusing on environment quality
issue.
Alternative fuel usage on vehicles has been
considered as one of the most important strategy to
overcome energy dependence, air quality and climate
change. Yeh [10] investigated the comparison of NGV
(natural gas vehicles) usage in eight countries that are
Argentina, Brasilia, China, India, Italy, New Zealand,
Pakistan, and United State. This writing investigates
main policies in order to promote NGV usage,
instrument for policy implementation and factors that
influence NGV usage. Writers few points are
summarized as follows:
The availability, modern technology and gas fuel
vehicles component are important for the acceptance of
gas fuel vehicles on costumer side, compared to the
existence of OEMs (original equipment
manufacturers).
The main strategies of NGV success are having a
retail selling price of gas fuel as much as 40%-50%
below gasoline & diesel price, and also giving
incentive to receive payback period for 3 to 4 years or
below.
 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience
Introduction of passenger car market with
alternative fuel has been done in Switzerland.
Stakeholders analysis and dynamic modeling
technique are used to describe the system. The
analysis identified barriers and chances in penetration
process of cars market with gas fuel in Switzerland.
Referring to elements of Balanced Scorecard
approach, it will produce better performance on
implementing fuel gas vehicles in Switzerland. This
study is performed by Janssen et al. [11]. Writers
recommendations are as follows:
CNG fuel station ratio is 1:300 NGVs;
NGV conversion done by local mechanic caused
higher emission level and greater fuel usage compared
to NGV from OEM. Thus, it eliminates most of the
gas fuel usage benefit;
The NGV Payback period is a maximum of four
years in order to attract customer, therefore lesser tax
from government is needed;
Subsidy for the purchase of gas fuel vehicle is
important in order to give costumer attraction.
Hekkert et al. [12] studied about CO2 emission and
energy efficiency with (wee to wheel) analysis as an
alternative automotive fuel chain, using natural gas as
a source of primer energy alternative replacing crude
oil. The results indicate that natural gas based
hydrogen applied in fuel cell vehicles lead to the
largest CO2 emissions reductions (up to 40% compare
to current practice). However, the biggest barriers on
implementing this option are foreseen technically and
in network system/infrastructure changes. Two
different transition strategies are discussed gradually
to get transition as a chosen fuel chain. The
importance of technology transition is as strength of
traditional machine technology that is using CNG and
FCV (fuel cell vehicles). The next result shows a
conventional series innovations such as diesel hybrid
vehicle is more efficient compared to other kinds of
natural gas vehicle. This option has more value on
carbon emission and becomes the most suitable
decision in the future.
529
Comprehensive study of alternative fuel for road
transportation in Singapore has been done by Poh and
Ang [13]. Many analysis attributes are used to identify
a number of fuel options for future needs. AHP
(analytic hierarchy process) analysis has been done to
analyze four plans or scenarios. In the result of the
study, there are policies and alternative fuel usage
plan for land transportation sector between the year of
2020 to 2030. Electric car is a wise choice. However,
to implement the usage of electric car, the readiness of
infrastructure and government policies are needed.
Demir et al. [14] discussed about few of emission
calculation on vehicles. This study compared numbers
of developed models to analyze how big the fuel
consumption and green house gas emission, which
related to transportation. Those models gave a slight
different result on the simulation that used realistic
assumption, but overall it was consistent and
predictable. For example, the difference of fuel
consumptions matched with cars sizes, gradient road,
and speed. When comparing result from model
implementation with actual ratio and road data, those
models are resulted on different performances.
Ireland is very much depending on import to
fulfilling transportation sector fuel. In 2008, total cost
spent is 5.9 billion Euros. The significant resources in
organic residues and feedstock is readily available
potential to substitute 8.4% of oil with indigenously
produced biomethane, a renewable gaseous transport
fuel. By using bio methane, it will automatically
economize import expenses and produce extra fund
for Ireland economy as much as the imported value.
Besides that, it will be able to save destruction fund
that related to environmental destruction. Bio methane
can be used as a feed from CNG. In 2020, the usage of
bio methane for transportation sector could reach 10%
goals from renewable energy usage. However, the
industry development in Ireland needs government
commitment. Government supports that special
needed are buss requirement of using gas fuel;
determine target market for gas fuel vehicles (CNG),
530 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience
subsidy for biomethane facility and networking
expansion. This result is summarized in Thamsiriroj et
al. [15] articles.
Collantes and Melaina [16] analyzed regarding
Argentinas experience in implementing CNG.
Methods that have been used in the analysis are
through interviews with stakeholders and analyzing
Argentinas economical data to determine the main
reason in fuel usage in the views of economic, politic
etc.. Based on analysis result, regulation to determine
fuel prices is decisive factor that significant with CNG
usage. Few points that need to be highlighted on
alternative fuel development are:
Determine and implement the effective standard
and code;
Cost prediction and financing mechanism from
fuel switching transition;
Cooperate with the stakeholders;
Determine economical price for costumers;
Facility benefited from existing fuel station with
using modular;
Speed up the infrastructure development.
Kalam and Masjuki [17] compared the test result
from CNG-DI (direct injection), CNG-BI (bi fuel) and
Gasoline PI (port injection) machine. The machines
are developed from gasoline multi cylinder (port
injection) machine modification. CNG-DI machine
has no obstacle in the first starter, that is similar with
Gasoline PI machine. The machine does not cause
noise in compression ratio 14 (compression initial
ratio 10). Others conclusions are:
In average speed, CNG-DI machine produces
2.02 kW smaller power (4.26%) from gasoline PI
machine and greater power as much 8.67 kW (19.10%)
from CNG-BI machine;
CNG-DI machine reduces fuel consumption as
much 0.28% compared to Gasoline PI machine and
7.87% compared to CNG-BI machine;
NOx emission produced by CNG-DI is 42%
lower from Gasoline PI machine;
CNG-DI machine produces 25% higher HC from
gasoline PI machine and 56% lower from CNG-BI
machine;
CO emission produced by CNG-DI machine is
greater compared to gasoline PI machine and CNG-BI
machine;
It can be concluded that CNG-DI machine
performance is similar with gasoline PI machine and
better than CNG-BI machine.
Most of the Algerian transportation sector is still
depending on crude oil. Pollution produced by this
sector is increasing with their vehicles addition. Thus,
HCNG (hydrogen compressed natural gas) usage
hopefully will play a significant role to reach
alternative fuel usage target which are clean and
economical. The greatest benefit will be produced if
hydrogen and natural gas are used together on the
combustion engine. Algerian has an important
resources and potential to introduce this new fuel.
HCNG developments as a fuel give hydrogen a chance
to be used in transportation sector. Amrouche et al. [18]
discussed strategically ways in introducing HCNG as a
transportation fuel in Algeria. Two strategic
fundamental elements are designed to introduce
hydrogen natural gas as transportation fuel; they are
CNG development process as transportation fuel and
settlement step of MedHySol project. MedHySol
project includes the production and the distribution of
solar produced hydrogen, involves the project
HySolThane intended for the development of HCNG
fuel road with 8% vol of hydrogen in natural gas.
In the future, the new biomass technology will take
part on Switzerlands energy sector. Schulz et al. [19]
analyzed economical condition where the new
biomass technology will be much competitive to
implement. This judgment focused on synthetic
natural gas production (bio SNG) resulted from wood
of methanation plant. This assessment is conducted
with the cost-optimization model SWISS-MARKAL
(MARKet Allocation). SWISS MARKAL is a future
investment project that integrates main analysis,
secondary analysis, final analysis and final energy
 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience
usage in Switzerland. Moreover, writer conducted few
evaluations regarding oil price increment, subsidy
allocation for methanation plant and competition
between methanation plant and biomass that using FT
(fischer-tropsch) synthesis basis. Analysis is done
with variety of methanation plant investment cost
level. The result, with implementing SNG bio for
alternative fuel will decrease the dependency of
imported oil and lower CO2 emission level. To
implement bio SNG, R & D continuation and
government policy are needed.
Karamangil [20] explained the development of
vehicles sector with LPG basis in Turkey, and rules &
regulations that implemented by Turkey government
are in relation with vehicles sector. LPG vehicles in
Bursa province are considered as a representative of
whole Turkey area. This paper also explained about
economical loss and their problems caused by energy
selection and environmental policy error in Turkey.
Turkeys government is not offering guidelines and
policys support on LPG implementation for vehicles.
The most important, the policy regarding implemented
energy to use alternative fuel has not been formed.
Thus, LPG vehicles development in Turkey has
general economy issues and many obstacles arise from
private sector.
Shepherd et al. [21] did continuation investigation
from previous research done by Struben and Sterman
(2008) to study all of the factors that influence electric
car usage to CO2 emission effect and the amount of
fund needed by government for its development until
the year of 2050. Writer used market analysis to
develop dynamic model system of electric car usage
for the next 40 years in England. The impact of
models acceptance and CO2 emission from various
sector such as subsidy, reach of availability, average
emission and income tax are the important part. Based
on analysis result, subsidy gives small impact on the
usage of BAU traditional concept. However, when we
introduced a scenario of marketing with condition,
they play an important role in market determination
531
until reaching a successful point. Result sensitivity to
assumption on word of mouth, average vehicle life and
emissions rates are explored and found that changing
these can result in a greater impact on take-up and
emission than policy vehicle attribute factors.
Transportation sector in developed countries suffers
few issues, especially regarding the increases of
energy consumption needed. INEP (integrated
national energy planning) in transportation sector is a
solution for those countries to change energy
consumption pattern which could decrease below
average value. One of INEPs goals is to determine
the best pattern for fuel usage and transportation
technology that is able to fulfill future transportation
demand in the lowest cost as possible. Determine
energy master plan of transportation sector
development is through EFOM-ENV (Energy Flow
Optimization Model-ENVironment), continue with
performing RES (reference energy system) from
transportation sector. Scenario has to be put on
definition of business-as-usual, optimal reference and
sensitivity analysis on fuels price, transportation and
invesment fund necessity. Those issues are
summarized on Sadeghi and Hosseini [22] writings.
Based on the above goals, writers focusing on pattern
that optimizing the vehicles fuel usage & product and
passenger transportation technology in Iran.
Minimizing cost of transportation system is needed in
the next 25 years (up until 2029). Some of the studys
recommendations are:
The main priority on transportation product is to
use big truck and train. Therefore, oil fuel usage
(gasoline and solar) for pick-up and small truck has to
reduce. CNG car is the right decision for alternative
vehicle to overcome the increment of oil fuels price;
The best model for passenger transportation is to
use public transportation. The main priorities of public
transportation are train development (diesel train,
subway, LRT and monorail) and CNG car for public
transportation (CNG mini bus and bus). The usage of
gasoline and solar car has to lessen;
532 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience
With switching over from business-as-usual
concept to optimal pattern, oil fuel consumption
(gasoline and solar) decrease as much as 24% and
17% for 25 years ahead;
Economical potential from fuel conservation in
Iran is as much 14% from estimated cost;
Cost saving from transportation sector is $114.46
billion.
Californias goal is to decrease a GHG (green house
gas) emission in the year 2050 as much 80% below
the level of 1990. To achieve that target, transition
scenario is developed with focusing on light vehicles
(LDV). Leighty et al. [23], explores four questions
related to light-duty vehicles and green house gas
emission, as follows: (1) what are programs selection
available to decrease green house gas emission as
much 80% on transportation sector below 1990s level
on 2050? (2) what is the fastest way to do transition
on LDV market, fuel and riding attitude for the next
40 years ahead? (3) how to do middle policy related to
different ways of transition? (4) what is the impact of
the technological changes percentage and market
implementation from 2010 until 2050 to the
occurrence of GHG emission cumulative number?
Development of scenario is done through decrease of
travel demand, resources availability, and
improvement of fuel saving & low carbonated fuel
usage that depend on vehicles market potential and
new fuel. This scenario shows few solutions that are:
LDVs electrification, speeding up the vehicles
efficiency improvements and fuel usage in the future
with carbon intensity that is half of gasoline and diesel.
The availability of low carbonate bio fuel and
decrease of travel demand level is a swing factors.
Hydrogen infrastructure shows lots of challenges;
therefore, special attention is needed in order to
achieve a successful transition period for economical
hydrogen sector in the future. These challenges are
mainly caused by numbers of technology selection
availability for production, storage, transportation and
users. Related to this matter, it is crucial to understand
and analyze the HSC (hydrogen supply chain) deeply
to detect any important factors that could increase an
optimal adjustment. Dagdougui [24] discussed recent
condition to design and facilitate hydrogen
infrastructure steps. The decision supporting system in
hydrogen supply (HSC) could easily change from one
writing to another. In this writing, models
classification and steps of approaches are conducted
including mathematical methods, decision-supporting
system based on GIS (geographical information
system) and judgment plans of a better transition on
HSC (hydrogen supply chain). This writing highlights
about future challenges of hydrogen introduction.
Yarime [25] analyzed an effort made by Tokyo
Metropolitan Government in a program of replacing
diesel vehicles with CNG vehicles that have lower
emission. A common issue in transportation sector is
when components of technology system become
complex which leads to a failure in coordination that
caused lock-in technology condition. In this situation,
government could form a coordination to promote
new technologies. Learned from the experience of
Tokyo city in overcome lock-in technology situation,
effective management is crucial through attitude and
strong hopes from everyone involves in using,
producing, and supporting the existence of cleaner
alternative vehicles.
Energy supply that parallel with affordable price are
vital. ASEAN is committed to get cleaner and greener
area with fully forming improvement mechanism also
to make sure regional environmental protection,
resources and high quality of peoples life. Nowadays,
energy usage in transportation sector becomes an
important issue in ASEAN countries. Therefore, few
approaches that relatively inexpensive is to give
introduction program of fuel saving and labels
standard in order to influence customers attitude that
leads to more production of efficient vehicles by
automobiles factory. Fuel saving and labels standard
for vehicles have been implemented in many countries
around the world to save fuel consumption and
 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience
decrease CO2 emission. Silitonga et al. [26] discussed
on fuel saving and labels standard for chosen ASEAN
countries vehicles such as Singapore, Indonesia,
Malaysia, Philippine, Thailand and Vietnam.
Singapore is the first ASEAN country that
implemented fuel saving and labels standard. The
implementations of a clean fuel standard play an
important role to protect public and environmental
health from emission in transportation sector.
Alternative fuels that are commonly used in ASEAN
are biodiesel, ethanol, methanol, propane, hydrogen
and natural gas.
Since global energy demand suffers an increment,
natural gas plays strategically role on energy supply.
Over the last couple of decades, this has changed and
gas market continue to expand more rapidly than those
of other fossil fuels. Natural gas is a clean fuel and
consist lots of hydrogen, it also an energy conversion
that has high efficiency for electricity power plant.
The key and challenge of energy industry is how is the
transition process can be better arranged. Economides
and Wood [27] observed regarding natural gas source,
limitation and potential. Writers also discussed about
technology identification and commercial challenge to
be overcome in taking the world through the transition
process. Big investments in infrastructure could
increase gas usage. Few facilities of liquid natural gas
are more flexible in the usage. Gas conversion
technology such as GTL and CNG grab many
attentions yet the energy efficiency and cost becomes
barrier for alternative steps. The growth of natural gas
gives a contribution that has a big potential for
transportation sector directly. Current technologies,
investments and consumption trends suggest that
natural gas will be at the centre of a world wide
transformation resulting in a greatly expanded market
share of gas in the energy mix for power generation,
space heating, petrochemical feedstocks and
transportation fuels.
Factors of economy, environment and social are
determined factor on vehicles selections based on the
533
best fuel usage for transportation sector. This situation
aims to multi criteria selections problem to multi
alternative. In Mohamadabadi et al. [28] study, a
multi-criteria assessment model was developed to rank
different road transportation fuel-based vehicle (both
renewable and non-renewable) using a method called
PROMETHEE (Preference Ranking Organization
Method for Enrichment and Evaluations). This
method combines qualitative and quantitative criteria
to give alternative fuel a grade. In this study, vehicles
fuel is categorized in gasoline, electric-gasoline
(hybrid), E85 ethanol, diesel, biodiesel B100 and
CNG (compressed natural gas). These alternatives are
based on five criteria: cost of vehicles, cost of fuel,
distance between stations, number of vehicles
selections for customers, and green house gas
emission. In addition, analysis sensitivity has been
done to study the effect of changes in various
parameters in final level. In scenario that using
economical parameter, vehicles with gasoline and
diesel is given higher level from other vehicles,
followed by hybrid, E85, biodiesel, and CNG. In
environmental parameter case of scenario, hybrid car
is on the first level, followed by vehicles with
biodiesel, diesel, gasoline, E85 and CNG basis.
3. Alternative Fuel Usage in Indonesia
Implementation of alternative fuel usage for vehicles
in Indonesia is gas fuel (BBG) that is CNG and LGV.
The CNG usage program for vehicles in Indonesia
started in 1986 which has been implemented for the
first time in 1987 with Pilot Project for about 300
taxis and small buses in DKI Jakarta. BBG usage for
vehicles is increased every year and reached the top in
the year 2000; it is recorded as much as 6.633 small
cars are using BBG. However, together with issues
appearances, numbers of CNG vehicles are declining
continually as shown in Fig. 5. The figure is clear that
BBM diversification to CNG is still dominated by
small cars, whereas a large numbers of big cars (bus
and trans Jakarta) have not yet switched to gas fuel.
534 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience
Fig. 5 Growth of CNG vehicles in Jakarta [1].
Nowadays, BBM diversification to gas fuel for new
cars is implemented in five cities in Indonesia that are
Jakarta, Bogor, Cirebon, Surabaya and Palembang. In
reality, the implementation of conversion in the above
cities is still facing barriers. Based on Directorate
General of Land TransportationMinistry of
Transportation data, there is around 86.526 public
transportation that are Taxi, TransJakarta Buslo,
Mikrolet, ABK, APB and Bajaj in Jakarta. From that
total, only 3.236 have used BBG. However, many
people are switched back to oil fuel usage (premium)
with variety of reasons.
Compared with numbers of cars in Indonesia,
especially in those four countries, this condition is
very sympathetic and seems that government policy
regarding BBM conversion to gas fuel is still far from
hope. From investigation result from many sides,
generally, unsuccessful BBG program for vehicles is
caused by various problems that are:
(1) limited spbg availability and mainstay;
(2) limited gas supply quantity;
(3) expensive conversion kit;
(4) limited gas pipe network;
(5) gas sell price structure is lower from its
economical price;
(6) insufficiency of spare part workshop and certified
personal;
(7) security and comfort ability;
Light vehicle
Bus
TransJakarta
(8) vehicles technical problem;
(9) low quality of gas;
(10) policy implementation and program consistency.
4. Conclusion
The increase of energy consumption and crude oils
price gives an effect to government of Indonesia to
also increase the value of subsidized oil fuel. The
amount of the given subsidy reduces countrys budget
allocation for funding the social programs and
infrastructure development. Based on reserved natural
gas that own by Indonesia, the usage of gas fuel as an
alternatives substitute of oil fuel is a better selection.
Public transportation for land transportation could
directly aim through government policy by doing
conversion to gas fuel.
Natural gas process for transportation sector in
developed countries has been implemented to lessen a
dependency from crude oil where in a few years back,
crude oil price is increasing. Moreover, global
warming issue motivates many countries to use a
cleaner energy. Indonesia is committed that in 2020
green house gas emission will reduce as much as 26%.
Green house gas emission caused by CO2, CH4, N2O,
HFC, PFC, and SF6.
Based on review of alternative fuel usage and gas
fuel implementation problems for transportation sector
in Indonesia, there are few recommendations
 Implementation Application of Alternative Fuel for Land Transportation
Sector in Indonesia Based on Other Countries Experience
suggested such as:
To determine policy which consist of natural gas
allocation, retail gas price, gas fuel usage obligation
and incentive/subsidy (for gas fuel producer and
customer);
To implement technical and safety of gas fuel
usage standard;
To speed up gas fuel infrastructure development;
To prepare professionals needed;
To include stakeholders;
To promote gas fuel usage to society;
To obligate the vehicles producer to produce gas
fuel cars;
To decrease subsidized oil fuel price thus gas fuel
price is more competitive.
To implement alternative fuel usage in Indonesia,
comprehensive analysis is needed along with learning
from other countries experiences, readiness of
infrastructure and support from government.
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