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From Plantations To Jet Engines: Indonesia's Bold Plan For Palm Oil-Based Bioavtur
Indonesia is pioneering the development of Sustainable Aviation Fuel (SAF) from palm oil, an innovative move to create a cleaner fuel for aviation and add value to its largest agricultural commodity. (Biro Pers Sekretariat Presiden)
Jakarta, Indonesia – The Indonesian government has charted a new course for its flagship agricultural product, unveiling a strategic plan to transform palm oil into Sustainable Aviation Fuel (SAF). This initiative, announced by Coordinating Minister for Economic Affairs Airlangga Hartarto, aims to propel the nation's bioenergy agenda into the aviation sector, creating what is commonly termed "bioavtur". The plan is a direct extension of the country's world-leading biodiesel program and is motivated by the urgent need to address the climate impact of air travel while forging a new, high-value industrial pathway for its palm oil industry.
The aviation sector presents a unique and growing challenge for Indonesia, an archipelago where air connectivity is essential. Domestic consumption of jet fuel is on a steady rise, leading to increased imports and exposure to global price fluctuations. This reliance not only affects trade balances but also poses a strategic energy security concern. By developing a domestic SAF industry, Indonesia intends to substitute a portion of these imports with a locally sourced, renewable alternative, thereby conserving foreign exchange and insulating its transport network from external supply shocks.
Environmental stewardship is a core driver of the SAF policy. International aviation is under mounting pressure to reduce its carbon dioxide emissions, which contribute to global climate change. Sustainable Aviation Fuel derived from biological feedstocks like palm oil is recognized as one of the most promising solutions for reducing the sector's lifecycle carbon emissions. Indonesian authorities cite research showing SAF's potential to cut emissions by up to 80% compared to fossil-based jet fuel, offering a practical tool for the country to meet both domestic environmental targets and international obligations under global aviation agreements.
Technological readiness provides a foundation for optimism. Indonesia's journey toward bioavtur is not starting from zero. A consortium of national entities, including Pertamina, the Bandung Institute of Technology (ITB), and the Ministry of Energy and Mineral Resources, successfully conducted a landmark test flight in 2021 using a CN235 aircraft powered by a bioavtur blend. This achievement proved the technical feasibility and engine compatibility of palm oil-derived fuel. The new plan involves scaling up such innovation through industrial partnerships, such as the collaboration between defense manufacturer PT Pindad and the palm oil fund agency BPDP.
To ensure this venture succeeds in a global market increasingly focused on ethical supply chains, Indonesia is bolstering its sustainability credentials. The government has enacted a stronger Indonesian Sustainable Palm Oil (ISPO) certification standard via Presidential Regulation and is deploying a digital traceability system. These steps are critical to demonstrating that palm oil for SAF is produced without causing deforestation or violating environmental safeguards, thereby mitigating potential trade barriers related to sustainability concerns in key markets like Europe.
Economically, the SAF plan is a strategic play to future-proof the palm oil sector. Beyond being a major export earner, the industry is a vast source of employment for millions of Indonesians. By developing advanced downstream products like jet fuel, the government aims to create a stable domestic market that adds significant value to every ton of crude palm oil produced. This aligns with the national hilirisasi (downstreaming) doctrine, which seeks to move the economy up the value chain from commodity exporter to advanced manufacturer.
Officials have set a clear horizon for action, with Minister Airlangga indicating that the broader application of new biofuel initiatives is slated to begin in the latter half of 2026. This timeline follows the ongoing implementation and success of the B40 biodiesel mandate, which has already delivered substantial benefits in reduced fossil fuel imports and lower greenhouse gas emissions, providing a proven model for scaling up biofuel adoption.
Indonesia's plan to produce jet fuel from palm oil is a visionary attempt to align economic ambition with ecological responsibility. It represents a significant bet on the potential of green technology to redefine the value of a traditional commodity. By navigating the complex interplay of technology, sustainability, and market dynamics, Indonesia aims to secure a leading role in the emerging global economy of sustainable aviation.
(Bassam Raza)
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