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Cilacap bioavtur refinery project could boost GDP by Rp199 trillion

| Source: ANTARA_ID Translated from Indonesian | Energy
Cilacap bioavtur refinery project could boost GDP by Rp199 trillion
Image: ANTARA_ID

Cilacap, Central Java (ANTARA) - Pertamina, through its Cilacap Refinery Unit IV in Central Java, has stated that the bioavtur refinery project for eco-friendly sustainable aviation fuel (SAF) has the potential to boost Gross Domestic Product (GDP) by Rp199 trillion per year.

“We target the project to be operational by 202lag,” said Hermawan Budiantoro, Executive General Manager of Pertamina Patra Niaga Cilacap Refinery, during an inspection of the Independent Energy Village programme in Bondan Hamlet, Kampung Laut District, Cilacap, Central Java, on Thursday.

The construction of the bioavtur refinery, situated on 17.5 hectares of land near the Cilacap Refinery Unit IV, is estimated to require a total investment of US$1.1 billion, with a target operational date in 2029.

Currently, the production capacity for bioavtur (SAF) reaches 27 kilolitres per day at the Cilacap Thermal Distillate Hydro Treating (TDHT) unit as an avtur producer.

In addition to increasing the contribution to GDP, the production of eco-friendly fuel also has the potential to reduce annual emissions by 600,000 tonnes of carbon dioxide equivalent (CO2e) and is estimated to create approximately 5,900 jobs.

Previously, the ground-breaking ceremony was held in February 2026 by President Prabowo Subianto, focusing on large-scale green fuel production to strengthen national energy independence and SAF capabilities.

The bioavtur refinery will utilise plant-based raw materials and used cooking oil (UCO).

Meanwhile, the estimated requirement for UCO at the Cilacap bio-refinery by 2029 is expected to be around 350,000 tonnes per year.

Hermawan added that the SAF content blended into aviation fuel will reach up to three per cent, which will be supplied to airlines at domestic airports, namely I Gustation Ngurah Rai International Airport in Bali and Soekarno-Hatta International Airport in Jakarta.

SAF produced in Indonesia is expected to become a future necessity for fuels, including aviation avtur, especially as it has already obtained international certification, namely the International Sustainability and Carbon Certification (ISCC), for the period of July 2024 to February 2025.

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