Indonesian Journal of Industrial Engineering & Management
Vol 6, No 3: October 2025

Business Feasibility Analysis of Bioethanol Distillation Equipment Using Waste Empty Palm Oil Bunches and Palm Fronds

Mariyam, Siti (Unknown)
Umam, Muhammad Isnaini Hadiyul (Unknown)
Nur, Muhammad (Unknown)
Suherman, Suherman (Unknown)
Hamdy, Muhammad Ihsan (Unknown)



Article Info

Publish Date
27 Jan 2026

Abstract

Indonesia as one of the largest palm oil-producing countries in the world, produces a considerable amount of waste as a result of the palm oil production process. It can utilize the waste of empty palm bunches and palm fronds to be used as bioethanol as renewable energy. Purification of bioethanol using distillation equipment. The purpose of this study is to determine the feasibility of bioethanol distillation equipment using waste empty palm bunches and palm fronds in terms of market aspects, technical aspects, and financial aspects. The results of the research based on market aspects with the calculation of the selling price of production, forecasting, and benchmarking are declared feasible to run. Based on the technical aspects of determining the location and production process, it can be declared feasible to run because it is profitable. Based on the financial aspects by calculating NPV of IDR 850,702,895> 0, it is declared feasible because it is positive, PI of 3.67> 1 is declared feasible, IRR of 35%> 11% so that IRR is declared feasible, and PP obtained 2 years 2 months is declared feasible because it can return the investment before 5 years from the time that has been set.

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Journal Info

Abbrev

ijiem

Publisher

Subject

Control & Systems Engineering Decision Sciences, Operations Research & Management Engineering Industrial & Manufacturing Engineering

Description

The journal aims to advance the theoretical and applied knowledge of this rapidly evolving field, with a special focus on industrial engineering and management, organisation of production processes, management of production knowledge, computer integrated management of production flow, enterprise ...