Modeling of LGV Supply Chain System for Land Transportation Sector

Liquid Gas for Vehicles (LGV) is an alternative fuel for land transportation sector besides gasoline. Until now, fuel conversion program from gasoline to gas fuel has not been fully implemented in Indonesia, as the availability of gas fuel distribution infrastructure is far behind the gasoline distribution infrastructure. This research was conducted to find out the necessity of gas fuel distribution infrastructure development as well as the feasibility of gasoline to gas fuel conversion implementation. The phases on this research were potential estimation of gas fuel necessity for public transportation, analysis of gasoline supply chain, analysis of the necessity of LGV distribution infrastructure development and simulation of gas fuel supply chain economic system using project financing scenario. The result of infrastructure analysis produced a recommendation of 11 new units of LGV filling stations in big cities on Java Island. The economical price for, LGV is as much as IDR 8,392/LSP. Based on this calculation, recommendation of LGV was only for executive cabs.