Evaluating Transportation of Crude Palm Oil for GHG Emissions Reduction Using a Time/Cost-Distance Model: A Case Study of Special Terminal Policy for Crude Palm Oil Shipments from Central Kalimantan to East Java

Abstract The palm oil industry is a significant contributor to Indonesia’s economy, yet its environmental impact, including greenhouse gases (GHG) emissions from the transportation of Crude Palm Oil (CPO), poses significant challenges. This study employs the Time/Cost-Distance model to evaluate transportation scenarios used in the distribution of CPO from Central Kalimantan to East Java. By comparing transportation scenarios involving road and inland waterway networks, the study identifies the optimal configuration to minimize air pollution caused by GHG emissions while considering transportation time and cost. The results indicate that the “inland waterways network scenario,” supported by the special terminal policy outlined in the Minister of Transportation Regulation Number 52 of 2022 on Special Terminals and Terminals for Private Use, provides a more environmentally friendly and cost-effective solution, despite covering a longer distance than the “road network scenario.” The inland waterways network scenario results in total GHG emissions of 22.37 kg CO 2 -eq/ton, a cost of $17.70/ton, and a travel time of 88.07 hours, compared to the road network scenario, which has total GHG emissions of 32.71 kg CO 2 -eq/ton, a cost of $30.16/ton, and a travel time of 87.55 hours. One factor contributing to these differences is the presence of special terminals, which eliminate a leg of transportation in the inland waterways network scenario, thereby reducing both GHG emissions and transportation costs. This demonstrates that policy and law can enhance the sustainability of the palm oil industry and helping to address the issue of climate change through the reduction of GHG emissions.