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Indonesia Advances Aviation Decarbonization Through Pertamina-Boeing SAF Partnership

Indonesia Advances Aviation Decarbonization Through Pertamina-Boeing SAF Partnership
Indonesia is intensifying its efforts to promote sustainable aviation through a strategic partnership between the state-owned energy company PT Pertamina (Persero) and aerospace leader Boeing. The two entities have formalized their collaboration by signing a memorandum of understanding (MoU) aimed at developing a sustainable aviation fuel (SAF) ecosystem within Indonesia. This initiative seeks to increase SAF production, enhance the clean aviation supply chain, and contribute to the country’s broader net-zero emissions objectives.
This partnership emerges amid projections of rapid growth in air travel across Southeast Asia over the next two decades, which is expected to significantly increase demand for lower-carbon aviation fuels. Indonesia aspires to establish itself as a regional frontrunner in sustainable aviation, addressing emissions in one of the most challenging sectors to decarbonize.
Building a Comprehensive SAF Ecosystem
The MoU outlines a collaborative approach whereby Pertamina and Boeing will explore opportunities throughout the entire SAF value chain. Their focus includes identifying sustainable feedstock sources, evaluating SAF production technologies, supporting the development of relevant policies and regulations, enhancing technical expertise and workforce capabilities, and fostering long-term investment in Indonesia’s SAF industry.
Rather than concentrating solely on fuel production, the partnership aims to establish a holistic SAF ecosystem that integrates feedstock suppliers, refineries, airlines, policymakers, and technology providers. Pertamina’s President Director, Simon Aloysius Mantiri, highlighted Indonesia’s abundant renewable feedstock resources and the company’s refining expertise, while emphasizing Boeing’s extensive experience in aviation. Together, they intend to accelerate the growth of a competitive domestic SAF industry that supports both economic development and aviation decarbonization.
Indonesia’s Potential as a Regional SAF Hub
Indonesia is widely regarded as one of Southeast Asia’s most promising markets for sustainable aviation fuel. According to the ASEAN 2050 SAF Outlook, Indonesia ranks among the top three ASEAN countries projected to have the largest SAF production surplus by 2050. The country could potentially produce an estimated 2.2 million barrels of SAF per day by leveraging its extensive agricultural and forestry resources, significant volumes of used cooking oil and palm oil residues, existing refining infrastructure, and a growing domestic and regional aviation market.
These factors position Indonesia to become a major SAF producer and exporter, meeting the increasing demand from airlines seeking cleaner fuels to comply with future climate targets.
Global SAF Supply Challenges
Despite Indonesia’s strong potential, the global SAF industry continues to face considerable challenges. In 2025, SAF accounted for only 0.6% of global aviation fuel demand, with overall production remaining below 1% of total jet fuel consumption. Airlines worldwide have expressed concerns regarding the adequacy of SAF supply to fulfill emerging regulatory mandates. Governments, including the United Kingdom, have responded with substantial funding initiatives such as the recent £219 million fund to stimulate SAF development.
Innovations like the SAF book-and-claim system, which may extend to non-EU airports, offer promising avenues to increase SAF adoption. However, these developments underscore the urgent need for robust policy support and technological advancements to scale production and meet the aviation sector’s decarbonization goals.
Boeing’s Long-Term Outlook
Boeing projects that passenger traffic in Southeast Asia will grow by approximately 7% annually over the next 20 years, necessitating nearly 4,900 new commercial aircraft by 2044. While this growth is a positive indicator of economic development, it simultaneously intensifies the imperative for cleaner aviation solutions. Indra Duivenvoorde, Managing Director of Boeing Indonesia, affirmed Indonesia’s strong position to lead in sustainable aviation and expressed optimism about the partnership with Pertamina in advancing the country’s SAF ambitions.
As Indonesia and Boeing progress with their collaboration, their joint efforts highlight both the significant opportunities and the complex challenges involved in scaling sustainable aviation fuel to meet the industry’s climate commitments.

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