Andini Saraswati
IPMI International Business School
Amelia Naim Indrajaya
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Producing bio-diesel oil as a renewable energy source by utilizing waste from used cooking oil.
This social entrepreneurial endeavour began when the students from Universitas Negeri Makassar lead by Andi Hilmy Mutawakkil, were concerned about people’s health, limited stock of fuel, high price of fuel and distance to buy the fuel that were used by fishermen in Makassar. They started their journey by researching the market and found out that in the market there was too much waste of used cooking oil sold to the customers in the traditional market (the distribution are in the amount of 17.600 litres per day), and this waste were consumed by customers. In 2014 in Wahidin Hospital in Makassar there were 16.400 patients with illness such as hypertension, heart attack, and too high cholesterol.
The students behind this business also found out that the fishermen in Makassar usually had difficulties to find their fuel, they had to buy the fuel many kilometres away or from a local mafia keeping the prices up. All this together had caused the fishermen to stop sailing or switch their job. From BPS’s data from the year of 2001 to 2016, at the beginning of 2001 there was 1.6 million fishermen, but by the end of 2016 only 850,000 people worked as fishermen.
This problem inspired Gen Oil to produce bio-diesel from waste of used cooking oil.The students solved different problems by a common solution. They solved the problem with the lack of fuel, limited the distribution of waste cooking oil, and created a new product, bio-diesel, from recycled waste of cooking oil.
As their motto says: "renewable energy for better life".
The bio-diesel increase the life quality, health and and also income for people in Paotere Makassar, especially for fishermen saving their cost at least Rp 4,200,000 per month. Plus by using renewable energy source, the air is now cleaner.
Fuel is needed by people in Paotere - Makassar, and by inventing a new, greener product needed, the company gets a profit while at the same time solving several local problems with health, lack of access to fuel and problems with the mafia. The company gets a profit of Rp 1,000/litres. They produce at least 2,000 litre per day or 60,000 litre each month. This company has a profit of Rp 60,000,000 each month. But also for the fishermen save at least 20% from before they had access to this new product, or at least a saving of Rp 4,200,000 each month. It is a win-win situation.
Social stability is achieved through helping the government giving the fishermen access to the fuel needed each month. The fisherman save their operational cost, and the company also provide job opportunities.
By producing a renewable energy source, the emission are environment friendly, so the company also help the environment by creating cleaner air.
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