Analysis biodiesel distribution in Indonesia's Kalimantan Region: A case study on the readiness of ship-to-ship floating storage mechanisms in Balikpapan to Support the B35-B40 Biodiesel Mandate

Abstract

The mandatory implementation of biodiesel in Indonesia has progressed from B2.5 in 2008 to B35 in 2023, with B40 targeted for 2025. However, logistical and infrastructure challenges persist, particularly in Kalimantan, where industrial demand is high but storage and distribution facilities are limited. To address this, the government has established Shipto-Ship (STS) floating storage in Balikpapan as a key distribution point. While this approach enhances distribution efficiency, it also incurs higher operational costs and environmental risks such as marine pollution. This study aims to analyze the readiness of floating storage in Balikpapan, evaluate its environmental impact, and assess the financial feasibility of transitioning to onshore storage facilities. A Systematic Literature Review (SLR) was conducted using the PRISMA 2020 framework, analyzing studies from Google Scholar, Scopus, ScienceDirect, Taylor & Francis, and Sage Journals. Findings indicate that floating storage supports biodiesel distribution but presents sustainability concerns. The cost analysis suggests that transitioning to onshore storage could reduce long-term operational expenses, while environmental assessments highlight the need for stricter regulations and monitoring to mitigate marine pollution risks. Additionally, policy recommendations emphasize enhancing biodiesel storage infrastructure and adopting cleaner distribution methods. This study underscores the strategic importance of optimizing biodiesel logistics to ensure efficient, cost-effective, and environmentally sustainable distribution in Indonesia. Future research should explore scalability, safety enhancements, and regulatory improvements for long-term biodiesel infrastructure development.