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 the decarbonisation of the aviation sector and accelerate the energy transition towards Net Zero Emissions (NZE). In line with the vision of President Prabowo Subianto, Indonesia continues to promote the development of SAF as a solution to reduce carbon emissions in the aviation sector whilst supporting the creation of a more sustainable aviation industry. According to the ASEAN 2050 SAF Outlook report, Indonesia ranks in the top three in ASEAN with the largest projected SAF production surplus, potentially reaching 2.2 million barrels per day by 2050. Through this collaboration, Pertamina and Boeing will work together to explore various aspects of the SAF ecosystem in Indonesia, including the identification of potential feedstock, technology development, and support for the formulation of policies needed to accelerate its implementation. PT Pertamina President Director Simon Aloysius Mantiri stated that for Pertamina, this collaboration is not merely about fuel development but represents a long-term investment to build a national SAF industry. He expressed optimism that the combination of Indonesia’s abundant domestic resources, Pertamina’s processing capabilities, and Boeing’s global aviation expertise would accelerate the development of a competitive SAF industry, create added value for the national economy, and support aviation decarbonisation. Boeing estimates that air passenger traffic in Southeast Asia will grow by an average of 7% per year, requiring 4,885 new aircraft by 2044. Amidst this growth, the use of SAF is a crucial solution to reduce the aviation sector’s carbon emissions, as neat SAF has the potential to cut aviation’s carbon footprint by up to 80% compared to conventional jet fuel. Boeing Indonesia Managing Director Indra Duivenvoorde noted that Indonesia is in a strategic position to lead sustainable aviation development in Southeast Asia. He welcomed the collaboration with Pertamina on various SAF development initiatives, ranging from identifying feedstock potential to supporting education and training programmes to accelerate the SAF ecosystem in Indonesia, contributing to a more sustainable future for the nation’s aviation industry and economic growth.