ASIATODAY.ID, JAKARTA — Indonesia is moving to strengthen its position in the future of green aviation after PT Pertamina (Persero) and Boeing signed a Memorandum of Understanding (MoU) to explore the development of a national Sustainable Aviation Fuel (SAF) ecosystem.
The strategic partnership reflects Indonesia’s growing ambition to become a key player in the global transition toward low-carbon aviation, a sector widely considered among the most challenging industries to decarbonize.
By combining Indonesia’s extensive renewable resource potential with Boeing’s global aerospace expertise and Pertamina’s energy infrastructure, the collaboration aims to accelerate the development of a competitive SAF industry capable of supporting regional and international aviation demand.
Under the agreement, Pertamina and Boeing will explore opportunities across the SAF value chain, including sustainable feedstock identification, technology development, industry collaboration, and policy frameworks required to support large-scale implementation.
Indonesia’s Emerging Role in Asia’s Green Aviation Transition
Indonesia’s SAF ambitions are supported by significant resource potential.
The ASEAN 2050 SAF Outlook identifies Indonesia as one of the three leading countries in Southeast Asia with the potential to become a major SAF producer, with projected surplus production capacity reaching 2.2 million barrels per day by 2050.
The country’s extensive agricultural resources, biomass availability, and waste-based feedstock potential provide a strategic foundation for developing a sustainable aviation fuel industry.
The opportunity comes as aviation growth in Southeast Asia continues to accelerate. Boeing estimates passenger traffic in the region will expand by around 7% annually, creating demand for approximately 4,885 new aircraft by 2044.
As airlines expand their fleets, SAF is expected to play a critical role in reducing aviation emissions. When used in its pure form, SAF has the potential to lower lifecycle carbon emissions by up to 80% compared with conventional jet fuel.
Building a Competitive SAF Ecosystem
Pertamina President Director Simon Aloysius Mantiri said the partnership represents a long-term investment in establishing Indonesia’s sustainable aviation industry.
“This collaboration is not merely about developing fuel, but about building Indonesia’s national SAF ecosystem. By combining domestic resource potential, Pertamina’s processing capabilities, and Boeing’s global aviation expertise, we are optimistic that this partnership will accelerate the growth of a competitive SAF industry while creating economic value and supporting aviation decarbonization.”
Boeing Indonesia Managing Director Indra Duivenvoorde highlighted Indonesia’s strategic potential to lead sustainable aviation development in Southeast Asia.
“Indonesia has a strategic opportunity to become a leader in sustainable aviation across Southeast Asia. We welcome collaboration with Pertamina in exploring feedstock potential, technology development, education, and training programs to accelerate the SAF ecosystem.”
From Innovation to Industrial Scale
Pertamina has already laid important groundwork for Indonesia’s SAF development.
The company has produced and certified Pertamina Sustainable Aviation Fuel, introduced SAF utilization initiatives with Pelita Air, and developed the Cilacap Biorefinery project through PT Pertamina Patra Niaga.
The facility is designed to produce SAF and Hydrotreated Vegetable Oil (HVO) using Used Cooking Oil (UCO) and other sustainable waste-based feedstocks, supporting Indonesia’s circular economy and clean energy transition.
The initiative aligns with Indonesia’s commitment to achieving Net Zero Emissions by 2060, while strengthening energy security, encouraging green investment, and creating new opportunities across the sustainable industrial value chain.
Positioning Indonesia in the Future of Global Aviation
With global airlines facing increasing pressure to reduce carbon emissions, the development of SAF has become a strategic priority for the aviation industry.
Indonesia’s combination of abundant renewable resources, growing energy infrastructure, and partnerships with global technology leaders could position the country as one of Asia’s emerging sustainable aviation fuel hubs.
If successfully developed at scale, Indonesia’s SAF ecosystem could contribute not only to cleaner aviation but also to the country’s broader ambition of becoming a leading force in Asia’s green economy. (AT Network)
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