ASIATODAY.ID, JAKARTA — Energy giants Shell Indonesia and Tripatra are set to begin construction of a Sustainable Aviation Fuel (SAF) refinery — commonly known as bioavtur — in Indonesia starting 2028, marking a major step toward the country’s green aviation and carbon reduction goals.
The SAF plant will utilize second-generation palm-based feedstocks, including used cooking oil (UCO) and Palm Oil Mill Effluent (POME), to produce cleaner jet fuel and reduce emissions across Indonesia’s aviation sector.
The plan was revealed by Efendi Manurung, Coordinator for Bioenergy Engineering and Environment at the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), Ministry of Energy and Mineral Resources (ESDM), during a forum on Life Cycle Assessment of SAF in Jakarta, on Thursday, October 30, 2025.
“Several private companies, such as Shell Indonesia and Tripatra, are developing their own SAF refineries using second-generation palm oil-based materials,” Efendi said.
Phased Construction Starting in North Sumatra
Tripatra will take the lead in building the SAF facilities, each with a production capacity of 60,000 tons per year (equivalent to 75,000 kiloliters). The construction will be carried out in stages:
2028: First SAF refinery in North Sumatra
2029: Expansion to Kalimantan
2030 and beyond: Additional units in Sumatra or Kalimantan
This multi-phase investment demonstrates growing private sector participation in Indonesia’s emerging sustainable fuel ecosystem and aligns with the government’s national energy transition strategy.
Indonesia Prepares SAF Mandate Starting 2026
The Indonesian government is currently drafting a regulation to gradually mandate SAF use in aviation, beginning with a 1% blend requirement in 2026 and rising to 5% by 2035.
“The SAF blending mandate is being finalized, with an initial target of 1% by 2026,” said Edi Wibowo, Director of Bioenergy at EBTKE.
Indonesia plans to require international flights departing from Jakarta and Bali to use SAF beginning in 2026 — a move expected to significantly cut the country’s aviation emissions profile.
Strong Feedstock Potential from Palm Waste and Used Cooking Oil
According to the Indonesia Palm Oil Strategic Studies (IPOSS) institute, Indonesia has the potential to produce 3–4 million kiloliters of used cooking oil annually, which could serve as a major feedstock for SAF production.
This vast feedstock supply positions Indonesia as a potential regional hub for sustainable aviation fuel production, reinforcing its role as a leader in palm oil–based green energy.
Pertamina’s SAF Initiative Complements Private Sector Efforts
State-owned energy company Pertamina has already started producing SAF from used cooking oil at one of its refineries and plans to convert two more refineries to process waste-based fuels.
Agung Wicaksono, Pertamina’s Director of Business Transformation and Sustainability, emphasized that SAF development supports both carbon reduction and circular economy goals.
“We’ve used SAF made from community-collected cooking oil for commercial flights. It’s not only about reducing up to 84% of carbon emissions — it’s also about building a circular economy where people can trade waste oil for cash that’s turned into efficient green fuel,” Agung said.
A Milestone Toward Low-Emission Aviation
The collaboration between Shell, Tripatra, and Pertamina underscores Indonesia’s determination to advance low-carbon aviation and accelerate the energy transition through innovation and public-private synergy.
If successful, these initiatives will make Indonesia a major SAF producer in Asia, strengthening its position in the global race toward net-zero aviation fuel solutions. (AT Network)
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