MATEC Web Conf.
Volume 164, 2018The 3rd International Conference on Electrical Systems, Technology and Information (ICESTI 2017)
|Number of page(s)||9|
|Published online||23 April 2018|
Formulating Interest Subsidy Program to Support the Development of Electricity Generation from Palm Oil Mill Effluent (POME) Biomass: An Indonesian Case Study
Fiscal Policy Agency, Ministry of Finance of Republic of Indonesia, Jl. Dr.Wahidin Raya No 1, Jakarta, 10710, Indonesia
2 UWA Business School, Crawley Campus, The University of Western Australia, 35 Stirling Highway, 6009 Perth, Australia
3 Faculty of Economics, University of Indonesia, Jl. Margonda Raya, Beji, Pondok Cina, Depok, 16424, Indonesia
4 College of Business Administration, Abu Dhabi University, Abu Dhabi Campus, 59911, Abu Dhabi, Uni Arab Emirates
5 Waste Laboratory University Muhamadiyah of Malang, Jl. Raya Tlogomas No. 246 Malang, 65114, Indonesia
6 Indonesian Association of Bioenergy Scientist and Technologist. BPPT Building II, Jl. MH. Thamrin. No. 8, Jakarta, 10340, Indonesia
* Corresponding author: firstname.lastname@example.org
This paper analyses financial feasibility and cost-benefit and formulates the relevant subsidy program that is currently implemented by the government. We find that providing interest subsidy is financially feasible only if it serves to substitute the consumption of diesel. The benefits are higher than the costs among three types (45 t, 60 t and 75 t) of the palm waste generator capacity. The paper also reveals that Credit Program is relevant with the objective, to provide interest subsidy to farmers, but certain adaptations are required.
Key words: Cost and benefit analysis / Credit program / Financial feasibility / Interest subsidy / POME
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (http://creativecommons.org/licenses/by/4.0/).
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