抄録
Recently, because of increasing of bio-fuel demand, bio-diesel production in Southeast Asia, which has plentiful material crops like oil-palm, has been noted. In these countries, there are many vertical integrated models of the oil-palm plantation and bio-diesel factory. Previous studies show the advantage of a vertical integrated model of oil-palm production and bio-diesel factory, but none discuss this from the view point of corporate activity. It has been shown that if the transaction quantity of the goods is small, market transaction will have advantage rather than internal transaction. Actually, the transaction quantity of palm oil for bio-diesel production is small enough. Therefore, the question is whether the vertical integrated model (internal transaction) has an advantage for bio-diesel producing project. This paper reveals the actual conditions of bio-diesel industry in Indonesia based on corporate activity. The result shows that the integrated companies do not have advantage for material procurement, but they could utilize the export channel which already available. The synergy with existing business becomes the advantage of integrated companies. This paper suggests that integrated companies will hold high position in Indonesian bio-diesel industry. However, there is the doubt about the bio-diesel producing project in raw material producer country, in Southeast Asia, because there are no advantages of vertical integrated model for material procurement.
