Sustainable Competitive Advantage in Indonesia’s Bioethanol Industry: Key Variables and Ecosystem Model
https://doi.org/10.35877/454RI.asci3784
Keywords:
sustainable competitive advantage, bioethanol industry, key variables, ecosystem model
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Abstract
The target for bioethanol fuel-grade blending in Indonesia has yet to be achieved, indicating significant barriers to the development of a sustainable industry. This study aims to identify key variables and develop an ecosystem model that supports Sustainable Competitive Advantage (SCA) in the Fuel-Grade Bioethanol Industry (FGBI) in Indonesia. Adopting the Resource-Based View (RBV) and Institutional Theory (IT) approaches, this study analyzes the interaction between internal and external factors influencing industry sustainability. Utilizing an exploratory inductive qualitative method covering the period 2006 to 2024, the research identifies three key RBV variables: (1) demand, (2) raw materials, and (3) technology as well as three coercive IT variables: (1) price formulation, (2) trade structure, and (3) tariffs and incentives as critical elements in achieving SCA. The findings indicate that coercive IT alone is ineffective in achieving SCA without integration with RBV. As both an academic and practical contribution, this study proposes a sustainable ecosystem model for FGBI in Indonesia. Further quantitative testing is needed to examine inter-element dynamics and evaluate the model’s long-term effectiveness. The implications for stakeholders highlight the importance of integrating policy with RBV principles to ensure the sustainability of the industry.
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References
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Huang, Y. C., & Chen, C. T. (2023). Institutional pressure, firm’s green resources and green product innovation: evidence from Taiwan’s electrical and electronics sector. European Journal of Innovation Management, 26(3), 636–664. https://doi.org/10.1108/EJIM-04-2021-0217
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Khanra, S., Kaur, P., Joseph, R. P., Malik, A., & Dhir, A. (2022). A resource-based view of green innovation as a strategic firm resource: Present status and future directions. Business Strategy and the Environment, 31(4), 1395–1413. https://doi.org/10.1002/bse.2961
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MEMR. (2006). Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 051 Tahun 2006 tentang Persyaratan dan Pedoman Izin Usaha Niaga Bahan Bakar Nabati (Biofuel) sebagai Bahan Bakar Lain.
MEMR. (2008). Peraturan Menteri Energi dan Sumber Daya Mineral Nomor 32 Tahun 2008 tentang Penyediaan, Pemanfaatan dan Tata Niaga Bahan Bakar Nabati (Biofuel) sebagai Bahan Bakar Lain.
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MEMR. (2016). Keputusan menteri Energi dan Sumber Daya Mineral Republik Indonesia Nomor 6034 K/12/MEM/2016 tentang Harga Indeks Pasar Bahan Bakar Nabati (Biofuels) yang Dicampurkan ke Dalam Bahan Bakar Minyak .
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MEMR. (2023b). Keputusan Direktur Jenderal Minyak dan Gas Bumi, Kementerian Energi dan Sumber Daya Mineral Nomor 252.K/HK.02/DJM/2023 tentang Standard dan Mutu (Spesifikasi) Bahan Bakar Minyak Jenis Bensin (Gasoline) RON 95 dengan Campuran Bioetanol 5% (E5) yang Dipasarkan di Dalam Negeri.
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Nandi, S., Gonela, V., & Awudu, I. (2023). A resource-based and institutional theory-driven model of large-scale biomass-based bioethanol supply chains: An emerging economy policy perspective. Biomass and Bioenergy, 174. https://doi.org/10.1016/j.biombioe.2023.106813
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Published
2025-04-30
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How to Cite
Rachman, I. (2025). Sustainable Competitive Advantage in Indonesia’s Bioethanol Industry: Key Variables and Ecosystem Model. Journal of Applied Science, Engineering, Technology, and Education, 7(1), 1-16. https://doi.org/10.35877/454RI.asci3784
Copyright (c) 2025 Izmirta Rachman (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
