Boosting Bioavtur Production, Pertamina Invests Up to Rp19.3 Trillion

PT Pertamina Patra Niaga, the downstream subholding of PT Pertamina (Persero), is investing US$1.1 billion or approximately Rp19.3 trillion (at an exchange rate of Rp17,547 per US dollar) to construct the Cilacap Bio Refinery. This initiative is designed to ramp up the production of eco-friendly aircraft fuel, known as Sustainable Aviation Fuel (SAF) or bioavtur.

Hermawan Budiantoro, Executive General Manager of PT Pertamina Patra Niaga Cilacap Refinery, revealed that SAF is currently produced at the Treated Distillate Hydrotreating (TDHT) unit of the Cilacap Refinery with a capacity of 27 kilolitres per day. Following the new refinery’s completion, SAF production is expected to increase by 860 kilolitres per day, or a 3,185 per cent rise, reaching 887 kilolitres per day, Hermawan stated in Cilacap on Friday (11/09/2026).

Pertamina conducted the groundbreaking for Phase 2 of the Cilacap Biorefinery Project in February 2026, marking it as Indonesia’s first standalone dedicated green refinery. The facility is expected to reach full operational capacity (onstream) in the near future.

Currently, Pertamina is undergoing the Final Investment Decision (FID) and partnership processes for this project. The Engineering, Procurement, and Construction (EPC) phase is targeted to commence in 2027.

The construction of the project, spanning 17.5 hectares, is claimed to create a significant multiplier effect. The facility is estimated to contribute up to Rp199 trillion to the national Gross Domestic Product (GDP).

Furthermore, this green refinery is projected to reduce carbon emissions by 600,000 tonnes of CO2 equivalent per year. The project also aims to absorb 5,900 workers, with a local content requirement (TKDN) of 30%.

Previously, Pertamina Patra Niaga has been expanding the ecosystem for SAF feedstock supply from Used Cooking Oil (UCO) by promoting a circular economy concept that involves active community participation. Through a used cooking oil collection programme integrated with the MyPertamina application and strategically placed collection points, Pertamina Patra Niaga is encouraging the public to become part of the clean energy supply chain while creating new economic opportunities at the local level.