Supply chain management for a policy-led transition from fossil fuels to renewable energy: contributions to Indonesia's national energy roadmap.

Abstract

The growing awareness of global warming has resulted in the need for more sustainable energy production. Facilitating the transition from fossil fuels to renewable energy sources necessitates a thorough examination of the energy sector, starting from the identification and analysis of the current energy regime, understanding the energy potentials, and ultimately moving towards the analysis of the preferred clean energy. The ultimate goal of this research is to propose comprehensive yet feasible strategies for policy recommendations as well as to facilitate and accelerate the transition from fossil fuel to renewable energy sources, by incorporating the supply chain management principle, using Indonesia’s energy sector as the framework. This research is divided into a series of research starting with PESTLE and stakeholder analysis of the energy fossil sector in Indonesia and then followed by that of the renewable energy sector. Following these identifications, these stakeholders are then involved in recounting the renewable energy sector as well as determining the most suitable renewable energy in Indonesia, through qualitative approaches. In this research, geothermal energy is selected as the most suitable renewable energy in Indonesia. Following this, the research continued to illustrate the complex nature of geothermal development in Indonesia through model conceptualization by employing the System Dynamics (SD) modelling technique. The SD model visualized the whole process, elements, and stakeholders that are incorporated within the geothermal system, including some of the most important factors that can act as key enablers in geothermal development such as geothermal investment, infrastructure, upstream data, environmental aspects, incentive, pricing, permit, and public acceptance. The research is continued by employing the supply chain principles and combining them with the transition framework, through a Multi-Level Perspective (MLP). The MLP model showcases the interaction between three levels, namely the socio-technical landscape, regime, and niche innovations as well as the transition pathways from fossil fuel to renewable energy. In this study, the main keys to the transition depend heavily on many aspects such as incentives and schemes. This research provides novelties that consist of (1) MLP new data, where it is not just a framework, (2) a new method, where it selects, links, and synthesizes different methods from PESTLE, Stakeholders analysis, SD, MLP into a toolkit that can be used a reference model for other transition cases and (3) transferability, where the research is transferrable to other sustainable transition problems where policy-led development and implementation have relevance such as the digitalization of hospitals, sustainable tourism, etc. This research could be beneficial for the stakeholders and it has high credibility in terms of data source. This research is strongly relevant to international agreements that can accelerate the energy transition.