Indonesia's Pertamina and Boeing Sign Agreement to Advance Sustainable Aviation Fuel Development

Indonesia's Pertamina and Boeing Sign Agreement to Advance Sustainable Aviation Fuel Development

Post by : Saif

Indonesia's state-owned energy company Pertamina and US aerospace giant Boeing have signed a Memorandum of Understanding (MoU) to explore opportunities for developing a Sustainable Aviation Fuel (SAF) industry in Indonesia.

The partnership is designed to accelerate the country's transition toward cleaner aviation while supporting Indonesia's long-term goal of achieving net-zero carbon emissions. The agreement focuses on expanding the production and adoption of sustainable aviation fuel as airlines and governments seek to reduce greenhouse gas emissions from air travel.

Focus on Sustainable Fuel Production

Under the agreement, Pertamina and Boeing will collaborate to identify sustainable feedstock sources, develop advanced SAF production technologies, and support policies that encourage wider use of sustainable aviation fuel across Indonesia.

Pertamina President Director Simon Aloysius Mantiri said the partnership is expected to strengthen Indonesia's sustainable aviation sector while creating new economic opportunities.

The collaboration also aims to build a competitive domestic SAF industry capable of supporting both local airlines and the broader regional aviation market.

Indonesia Seen as Regional Aviation Hub

Boeing said Indonesia has significant potential to become a regional leader in sustainable aviation fuel due to its abundant renewable resources and rapidly expanding aviation sector.

According to Boeing's long-term market outlook, passenger traffic in Southeast Asia is expected to grow by around 7% annually through 2044, creating demand for nearly 4,900 new aircraft across the region.

The company believes wider adoption of sustainable aviation fuel will play a key role in reducing carbon emissions from commercial aviation while supporting future air travel growth.

Pertamina Expands SAF Initiatives

Pertamina has already launched several projects aimed at increasing sustainable aviation fuel production. These include fuel certification programs, the use of SAF by its subsidiary Pelita Air, and the development of the Cilacap Biorefinery, which converts used cooking oil and other sustainable waste materials into aviation fuel.

The company says these initiatives are intended to strengthen Indonesia's clean energy transition while reducing dependence on conventional fossil fuels.

Supporting Global Climate Goals

The aviation industry is under growing pressure to lower carbon emissions, with sustainable aviation fuel viewed as one of the most effective short-term solutions for decarbonizing air transport.

Industry experts say collaborations between energy producers and aircraft manufacturers will be essential for scaling up SAF production and making cleaner aviation fuel commercially available.

The Pertamina-Boeing partnership represents another step toward supporting Indonesia's climate commitments while positioning the country as a future hub for sustainable aviation fuel production in Southeast Asia.

July 9, 2026 2:59 p.m. 247

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