
Indonesia's palm oil association GAPKI reported on 19 January that the government plans to mandate a 1% sustainable aviation fuel (SAF) blend in 2027, rising to 5% by 2029.
Eddy Wibowo, Director of Bioenergy at Indonesia's Ministry of Energy, said the development of the SAF policy marks a positive step towards implementing the country's roadmap for achieving net-zero carbon emissions by 2060.
According to Effendi Manurung, Head of the Renewable Energy and Energy Conservation Division under the Ministry's Directorate of Bioenergy and Environmental Engineering, a 1% SAF mandate for international flights could be implemented as early as 2026.
Manurung added that the government has not yet decided whether the SAF mandate — which will take supply and pricing factors into account — will be rolled out all at once or in phases.
He noted that since SAF prices (even at a 1% blend) are higher than conventional jet fuel prices, this would directly affect ticket prices, adding that no regulatory incentives were in place for the use of this fuel at the time of reporting.
It is worth noting that in October 2023, a sustainable aviation fuel blend containing 2.4% refined, bleached and deodorised palm kernel oil (RBDPKO) successfully completed commercial flight trials aboard a Boeing 737-800 NG owned by Garuda Indonesia.
Source: Bernama