From Frying Pan to Flight: Indonesia Turns Used Cooking Oil into Jet Fuel
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JAKARTA, Investortrust.id — Indonesia is turning waste into wings. State-owned energy giant Pertamina has launched a program to collect used cooking oil, paying households and small businesses Rp 5,500–Rp 6,000 per liter — nearly the price of subsidized gasoline. The oil is then processed into sustainable aviation fuel (SAF), part of the country’s broader push to cut emissions and build a green economy under President Prabowo Subianto’s administration.
At the Green Energy Summit 2025 in Jakarta on Tuesday, Sept 23, 2025, Pertamina’s Director of Transformation and Business Sustainability Agung Wicaksono highlighted how the program demonstrates a circular economy model that benefits both climate and communities. “Used cooking oil can become aircraft fuel. One day, even small street vendors might play a role in this chain,” Agung said.
So far, 35 collection points have been established, mostly at Pertamina gas stations across Greater Jakarta and Java. About 1,740 participants have already contributed nearly 60,000 liters of used cooking oil, with each site gathering around 1,400 liters per month.
Pertamina estimates the program cuts life-cycle carbon emissions by up to 84%. A 2024 Applied Energy study found that flights powered by SAF from used cooking oil can reduce greenhouse gas emissions by 76–97% compared with fossil jet fuel, underscoring the potential for aviation.
On Aug 20, 2025, Pertamina’s airline Pelita Air operated its first Jakarta–Bali flight using SAF blended with 2.5% used cooking oil processed at the Green Refinery in Cilacap.
“The flight proved that it is safe to fly with sustainable aviation fuel made from used cooking oil. Beyond reducing emissions, this program can also generate new revenue streams for Pertamina and the communities supplying the oil,” Agung said.
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Turning Waste Oil into Green Fuel
Pertamina Patra Niaga, Pertamina refinery subsidiary, has introduced a customer-based collection system to turn used cooking oil into sustainable aviation fuel. Households and food businesses are encouraged to deposit their waste oil at designated points in Pertamina gas stations or other collection sites. Through the MyPertamina app, customers can register their deposits and receive direct incentives, either as e-wallet cash rewards or MyPertamina loyalty points.
The program simplifies participation by allowing used cooking oil to be dropped off in containers at automated collection bins without the need for additional infrastructure. By converting household waste into renewable fuel, Pertamina not only supports cleaner energy production but also creates a circular economy model that benefits both consumers and the environment, Agung said.
Since its launch in December 2024, the initiative has collected 59,700 liters of used cooking oil across 35 collection points, averaging 1,400 liters per month per location with participation from 1,740 registered users.
“One thing that we learn from this program is that it is difficult to collect the feedstock and scale it up, but we keep improving,” Agung said.
Indonesia’s SAF Roadmap
Pertamina’s pilot program is only the beginning. Indonesia has mapped a long-term strategy to integrate SAF into its aviation sector, in line with its national energy transition and net-zero commitments.
The Coordinating Ministry for Maritime and Investment Affairs formally launched the SAF Roadmap and Policy Action at the Bali International Airshow in 2024. The plan focuses on securing feedstock such as used cooking oil, improving production technology, and ensuring availability, while simultaneously building demand through mandates and certification systems.
According to the roadmap:
2025 (incubation stage): Pertamina begins end-to-end pilot production and establishes offtake partnerships with airlines including Garuda Indonesia, Singapore Airlines, Cathay Pacific, Emirates, and Pelita Air.
2027 (pre-commercial): SAF mandates apply to all international flights departing from Jakarta and Bali airports, with a 3% national blending target.
2030–2034: The mandate rises to 7.5%.
2035–2040: All domestic flights from major airports are required to use SAF, with blending reaching 15%, equivalent to more than 1 billion liters per year.
By 2040, Indonesia expects SAF to account for 12.5% of total jet fuel demand nationwide.
Net-Zero 2060
Indonesia has committed to achieving net-zero emissions by 2060, with President Prabowo signaling his intention to bring the target forward. His government has pledged to retire coal and fossil fuel power plants within the next 15 years and to add 75 gigawatts of renewable capacity. A proposed US$65 billion green economy fund will finance projects ranging from reforestation to carbon markets.
Director of Planning and Development PT Pertamina Patra Niaga Harsono Budi Santoso said SAF represents one of the key measures to support the government’s clean energy push.
“This is one of the keys for us to succeed in energy transition programs, and under President Prabowo’s administration there is a strong focus on biofuel within the asta cita,” Harsono said during the Investortrust Green Energy Summit 2025 in Jakarta on Tuesday, Sept 23, 2025.
“The government initiated this program as part of the broader energy transition strategy, where airlines that currently consume aviation turbine fuel are also encouraged to adopt sustainable aviation fuel,” he said.
Harsono noted that SAF carries the advantage of being a “drop-in fuel,” meaning it can be used directly without requiring modifications to airport infrastructure or aircraft engines. The fuel’s physical and chemical properties are identical to conventional aviation fuel, ensuring seamless compatibility.
Pertamina’s SAF initiative is therefore more than a recycling scheme: it is part of a national climate strategy that links community livelihoods with cutting-edge energy technology. If successful, it could place Indonesia among the world’s leading adopters of sustainable aviation fuel.