Indonesia’s push to increase sustainable aviation fuel (SAF) production amid rising costs marks a significant milestone in the country’s green aviation strategy. As the nation strives to reduce carbon emissions from air travel, Pertamina, Indonesia’s state-owned energy company, is ramping up its efforts to scale up SAF production. This expansion is part of Indonesia’s broader commitment to sustainability and achieving its environmental goals. Despite the challenge of high production costs, Indonesia is determined to lead the region in green aviation by investing in new technologies, increasing capacity, and utilizing locally sourced feedstocks like used cooking oil. This initiative is expected to play a critical role in reducing aviation’s carbon footprint and helping Indonesia meet its ambitious net-zero emissions targets.
Indonesia’s state-owned energy company, Pertamina, is increasing its focus on sustainable aviation fuel (SAF) production as part of the nation’s broader strategy to cut carbon emissions from the aviation industry. As the country seeks to achieve its environmental goals, Pertamina is working to expand its SAF production capacity and explore new possibilities for green refineries. This move comes as the Indonesian government aims to bolster its efforts to promote cleaner aviation alternatives and reduce the carbon footprint of air travel.
Pertamina’s current SAF production takes place at its refinery in Cilacap, located in Central Java. However, the company has plans to scale up its SAF production by either upgrading its existing refineries or building entirely new green refineries. These green refineries would allow Pertamina to produce sustainable fuel at a higher volume, supporting Indonesia’s ambitious goals for reducing carbon emissions.
In addition to its refinery in Cilacap, Pertamina is developing or planning SAF production capabilities at its facilities in South Sumatra, Riau, West Java, and East Kalimantan. This expansion of SAF production will support the Indonesian government’s initiative to increase the national SAF blend mandate for international flights, targeting a 5% blend by 2035. This move is part of a larger effort to transition to cleaner energy sources and support sustainability in the transportation sector.
At a recent climate conference, Indonesia reiterated its commitment to producing over 1 million kilolitres of SAF annually by 2030. The production will primarily rely on used cooking oil as one of the key feedstocks, a strategy that not only supports waste reduction but also enhances the availability of a critical renewable resource. This goal reflects Indonesia’s strong push toward developing more sustainable fuel alternatives to conventional jet fuel, which remains a major contributor to aviation-related carbon emissions.
The Cilacap refinery, which is the largest in Indonesia, processes 348,000 barrels of crude oil per day and supplies about one-third of the nation’s fuel needs. With the conversion of this refinery into a green facility, Pertamina aims to produce SAF at a rate of 1.4 million litres per day—roughly half the volume of an Olympic-sized swimming pool. Of this production, approximately 3% is derived from used cooking oil.
The process of transforming used cooking oil into SAF is complex and involves several chemical steps. Initially, the used cooking oil is mixed with kerosene and heated to about 70°C. It is then transferred to a reactor, where it is heated to over 300°C. The oil mixture is passed through layers of catalysts, which speed up the chemical reactions that turn the oil into SAF. Once the mixture reaches the desired composition, hydrogen is added to stabilize it, ensuring that the resulting fuel is both stable and suitable for jet engines. The final product is a cleaner, more environmentally friendly fuel that can reduce the carbon footprint of aviation by up to 80% compared to conventional jet fuel.
Pertamina’s efforts to improve the catalyst used in the process have been supported by local scientific research. Indonesian scientists, in partnership with a prominent local technology institute, have developed a homegrown catalyst that helps improve production efficiency. This innovation is part of Indonesia’s broader initiative to reduce dependence on imported catalysts, contributing to the nation’s self-reliance in technology and sustainable fuel production.
In addition to Pertamina’s refinery upgrades, local communities near the Cilacap refinery are also becoming involved in the sustainable fuel production chain. In Tegalreja, a district near the refinery, residents are selling their used cooking oil to local waste banks instead of disposing of it down the drain. The oil is sold for around $0.30 per kilogram, providing a source of income for locals while contributing to the growing supply of feedstock for SAF production. Indonesia has the potential to produce up to 1 million litres of used cooking oil annually, but currently, about 95% of this oil is exported to Europe and other parts of Asia.
Despite the promising developments in SAF production, challenges remain. SAF is still significantly more expensive than conventional jet fuel, with costs ranging from two to five times higher. Industry experts have pointed out that if airlines begin using SAF at scale, ticket prices may increase, which could make it less attractive for consumers. To mitigate this risk, experts suggest that the government will need to intervene to ensure that the adoption of SAF does not lead to an increase in the cost of air travel.
Indonesia’s goal of becoming a regional leader in SAF production is ambitious but achievable. The country has made significant strides in refining the technologies needed to produce SAF and in scaling up production. However, the success of this initiative will depend on how quickly Indonesia can secure a steady supply of feedstocks, such as used cooking oil and other organic materials, to meet growing demand.
The transport sector accounts for around 22% of Indonesia’s energy-related carbon dioxide emissions, according to the International Energy Agency. This makes the transition to sustainable aviation fuel a critical step in Indonesia’s efforts to achieve net-zero emissions. As the country continues to develop its SAF capabilities, it is positioning itself as a key player in the global effort to reduce aviation’s environmental impact.
Indonesia’s push to increase sustainable aviation fuel (SAF) production, despite rising costs, marks a crucial step in the country’s green aviation strategy. This expansion supports Indonesia’s environmental goals by reducing aviation’s carbon footprint and advancing sustainable energy solutions.
sustainable aviation fuel is a vital component of Indonesia’s strategy to reduce carbon emissions from air travel and support its broader environmental goals. By expanding production capacity and improving feedstock supply chains, the country is taking important steps toward a greener future for aviation. With continued innovation and government support, Indonesia could become a regional leader in the production of sustainable aviation fuel, helping to pave the way for cleaner skies across the region and beyond.
