Abstract:
Nowadays, Riau Province located in Indonesia which is producing approximately
fifty percent of Indonesia crude oil production and ten million metric tonnes (MT)
of Crude Palm Oil (CPO) from two million hectares of palm oil plantation, has
become a potential province to develop a centre of oleo- and petrochemical
industry in Sumatra Island. Eventhough it is not a significant natural gas
producer, the neighboring provinces such as Jambi and South Sumatra are
supplying large amount of natural gas. It is such a challenging moment for Riau
local government to have strategic policy of oil and natural gas productivity into
petrochemical industry to manufacture its derivative products. It is also happening
to CPO in oleochemical industry. If all of these hydrocarbons used as raw
materials are high because of the expansion of oleo- and petrochemical industry,
the usage of oil and natural gas, as the fossil energy should be substituted by
renewable energy, such as wind, water, sunlight, geothermal power. Until now,
government and private sectors seem less to care to optimize this productivity.
System dynamics is used to simulate the behavior of this hydrocarbons
consumption as the energy and product supply to the oleo- and petrochemical
industries. Public policy as the intervention is introduced to become the feedback
to the government and private sectors to take the growth of oleo- and
petrochemical business.
