Institutional Analysis on Palm Oil-based Bioenergy for Rural Community Electricity Development in Indonesia: A Hybrid of Soft System and Hard System Approach

Abstract

The program of palm oil-based bioenergy development and utilization is one solution that can be applied to meet the electricity needs of the rural community in Indonesia. However, various needs and obstacles faced by related stakeholders have caused the program to not be implemented. The objectives of this study were to identify institutional issues that begin with identifying the needs and fundamental issues of program implementation, to identify key elements of the program's success, and to the determination of an adaptive institutional model. A total of 12 experts were involved and provided an assessment. The analysis was performed with the implementation of the seven stages in the Soft System Methodology. To get more structured and measurable analysis results, the analysis was also supported by Hard Systems Methodology techniques, such as the Interpretive Structural Modeling and Fuzzy Analytical Hierarchy Process. The result of the study obtained 7 key sub-elements, consisting of 3 sub-elements in the program needs element, 1 sub-element in the major constraint element, 1 sub-element in the objective element and 2 sub-elements in the supporting factor element. The study also gained and adaptive institutional model that plays a role in the provision of raw materials, infrastructure construction, energy transformation, operational and management, distribution and commercialization of electricity to rural communities.