Pertamina and Boeing Explore Development of Indonesia's SAF Ecosystem
PT Pertamina (Persero) and Boeing have signed a Memorandum of Understanding (MoU) to explore the development of a Sustainable Aviation Fuel (SAF) ecosystem in Indonesia, as part of efforts to support decarbonisation of the aviation sector and accelerate the energy transition towards Net Zero Emission (NZE).
In line with the Asta Cita vision of President Prabowo Subianto, Indonesia continues to promote SAF development as one solution to reduce carbon emissions in the aviation sector whilst fostering a more sustainable aviation industry. According to the ASEAN 2050 SAF Outlook report, Indonesia ranks among the top three in ASEAN with the largest projected SAF production surplus, estimated to reach 2.2 million barrels per day by 2050.
Through this cooperation, Pertamina and Boeing will collaborate on various aspects of developing Indonesia’s SAF ecosystem, including identifying potential feedstock, technology development, and support for the policy development needed to accelerate implementation.
Simon Aloysius Mantiri, President Director of PT Pertamina (Persero), said: “For Pertamina, this collaboration is not merely about fuel development, but a long-term investment to build a national SAF industrial ecosystem. With abundant domestic resources, Pertamina’s processing capabilities, and Boeing’s global aviation expertise, we are optimistic this collaboration will accelerate the development of a competitive SAF industry, create added value for the national economy, and support the decarbonisation of the aviation sector,” he said on Wednesday, 8 July 2026.
Boeing estimates that air passenger traffic in Southeast Asia will grow an average of 7% per year, with demand for 4,885 new aircraft by 2044. Amid this growth, the use of SAF is one of the key solutions for reducing carbon emissions in the aviation sector. In its pure form (neat SAF), the fuel has the potential to reduce aviation’s carbon footprint by up to 80% compared to conventional jet fuel.
“Indonesia holds a highly strategic position to lead the development of sustainable aviation in Southeast Asia,” said Indra Duivenvoorde, Managing Director of Boeing Indonesia.
“We welcome this collaboration with Pertamina across various SAF development initiatives, from identifying potential feedstock to supporting education and training programmes to accelerate the development of Indonesia’s SAF ecosystem. This collaboration is expected to support a more sustainable future for Indonesia’s aviation industry whilst contributing to national economic growth,” said Indra.