Hi Vit,
The correct environment variable is STARDOG_JAVA_ARGS. If you take a look in the stardog-admin.bat file, you'll see that if it's not set, it defaults to assigning 2 GB to the server. Our recommendations for memory usage are in the Capacity Planning portion of the documentation [1].
On the other end of the spectrum, we have run Stardog in some small foot print environments, such as a 512mb RAM virtual machine. There, we ran Stardog in embedded mode, inside a Spring app, hosted in Tomcat. The overall foot print was ~380mb, but the data set was small (< 10k triples).
Regards,
Al