Pertamina and Boeing Forge Sustainable Aviation Fuel Alliance as Indonesia Eyes ASEAN Leadership

JAKARTA, Investortrust.id — PT Pertamina (Persero), Indonesia's state-owned energy company, and Boeing have signed a memorandum of understanding to develop a Sustainable Aviation Fuel (SAF) ecosystem in Indonesia, positioning Southeast Asia's largest economy to capitalize on growing demand for low-carbon aviation fuel.

The partnership spans feedstock development, refining technology, policy support and industry capacity building as airlines race to reduce carbon emissions and comply with increasingly stringent environmental regulations.

Sustainable aviation fuel is expected to become one of the aviation industry's largest growth markets over the next two decades as governments and airlines pursue net-zero emissions targets.

For Indonesia, the collaboration offers an opportunity to leverage abundant agricultural and waste-based feedstocks to become a regional SAF production hub while creating a new downstream energy industry that adds value to domestic resources.

According to the ASEAN 2050 SAF Outlook, Indonesia is projected to become one of ASEAN's three largest SAF producers, with a potential production surplus of 2.2 million barrels per day by 2050.

Building Indonesia's SAF Ecosystem

The agreement will explore opportunities across the SAF value chain, including identifying sustainable feedstocks, advancing refining technologies and supporting policies needed to accelerate commercial deployment.

Pertamina President Director Simon Aloysius Mantiri said the partnership represents more than fuel development.

"This collaboration is not merely about developing a new fuel. It is a long-term investment to build Indonesia's national SAF ecosystem," Simon said in a statement released Thursday.

"With Indonesia's abundant domestic resources, Pertamina's refining capabilities, and Boeing's global aviation expertise, we are confident this collaboration will accelerate the development of a competitive SAF industry, create added value for the national economy, and support aviation decarbonization."

Aviation Growth Fuels Demand

Boeing forecasts air passenger traffic across Southeast Asia will expand by approximately 7% annually, requiring about 4,885 new aircraft through 2044.

That growth is expected to significantly increase demand for sustainable aviation fuel as airlines seek to reduce lifecycle carbon emissions without replacing existing aircraft fleets.

According to Boeing, neat SAF can reduce lifecycle greenhouse gas emissions by up to 80% compared with conventional jet fuel, depending on feedstock and production methods.

Boeing Sees Strategic Opportunity

Indra Duivenvoorde, Managing Director of Boeing Indonesia, said the country is well positioned to become a regional leader in sustainable aviation.

"Indonesia is strategically positioned to lead sustainable aviation development in Southeast Asia," Indra said.

"We welcome this collaboration with Pertamina, from identifying feedstock opportunities to supporting education and training programs that can accelerate Indonesia's SAF ecosystem. We expect this partnership to contribute to a more sustainable aviation industry while supporting long-term economic growth."

From Used Cooking Oil to Jet Fuel

Pertamina has already launched several initiatives to establish a domestic SAF supply chain.

The company has produced and certified its own Sustainable Aviation Fuel, supplied SAF for flights operated by Pelita Air, the airline owned by Pertamina, and is developing the Cilacap Biorefinery through its fuel distribution subsidiary PT Pertamina Patra Niaga.

The refinery is expected to produce both SAF and Hydrotreated Vegetable Oil (HVO) using used cooking oil (UCO) alongside other waste-based renewable feedstocks.

The project forms part of Indonesia's broader strategy to strengthen domestic energy security, expand green fuel production and capture higher-value opportunities in the global energy transition.