Stock Markets July 8, 2026 09:12 PM

Pertamina and Boeing Formalize Cooperation to Foster Indonesia’s Sustainable Aviation Fuel Sector

MoU sets out joint work on feedstocks, SAF technologies and policy support as Indonesia pushes to decarbonise air travel

By Marcus Reed
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Indonesian state energy firm Pertamina and U.S. planemaker Boeing have signed a memorandum of understanding to jointly explore the creation of a sustainable aviation fuel (SAF) industry in Indonesia. The agreement covers identifying feedstock sources, SAF technology development and policy support, and follows Pertamina's own SAF initiatives including production, certification, and the Cilacap Biorefinery project.

Pertamina and Boeing Formalize Cooperation to Foster Indonesia’s Sustainable Aviation Fuel Sector
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Key Points

  • Pertamina and Boeing signed a memorandum of understanding to explore building a sustainable aviation fuel industry in Indonesia.
  • The partnership will evaluate feedstock sources, SAF technology options and support for SAF-related policy development, affecting the aviation and energy sectors.
  • Pertamina has existing SAF programs, including production, certification, Pelita Air's SAF use and the Cilacap Biorefinery project using used cooking oil and other waste-based feedstocks.

Indonesia’s state energy company Pertamina and Boeing have agreed to cooperate on exploring the development of a domestic sustainable aviation fuel industry, Pertamina said in a statement. The companies signed a memorandum of understanding to examine opportunities across the SAF value chain in the country.

The MoU is intended to assist Indonesia’s efforts to decarbonise its aviation sector and advance toward net-zero emissions, the statement said. As part of the agreement, Pertamina and Boeing will focus on identifying viable feedstock sources, advancing SAF technologies and supporting the development of policies that enable SAF deployment.

Pertamina’s chief executive, Simon Aloysius Mantiri, was quoted in the statement saying: "We are confident this collaboration will accelerate the development of a competitive SAF industry, and create greater value for Indonesia’s economy." The statement also included comments from Boeing Indonesia Managing Director Indra Duivenvoorde, who said Indonesia had the potential to become a regional leader in sustainable aviation.

Boeing has projected robust growth in passenger traffic across Southeast Asia, estimating roughly 7% annual expansion through 2044 and forecasting demand for nearly 4,900 new aircraft over that period. Boeing said adoption of SAF is expected to play a role in cutting aviation emissions.

Pertamina has already launched several SAF-related activities. Those initiatives include SAF production and certification efforts, the use of SAF by its subsidiary Pelita Air, and the Cilacap Biorefinery project, which is designed to produce sustainable aviation fuel from used cooking oil and other sustainable waste-based feedstocks.


Context and scope

The MoU frames a cooperative effort rather than a binding commercial contract. The stated priorities - feedstock sourcing, technology development and policy support - indicate the parties plan to evaluate multiple components required to scale SAF production and use within Indonesia.

The parties did not provide timelines or financial details in the statement. The announcement highlights both corporate and public-policy dimensions of establishing a SAF industry, from upstream feedstock supply to regulatory frameworks that would support broader adoption of SAF in aviation.


Quotes

"We are confident this collaboration will accelerate the development of a competitive SAF industry, and create greater value for Indonesia’s economy," Pertamina CEO Simon Aloysius Mantiri said.

Boeing Indonesia Managing Director Indra Duivenvoorde said Indonesia had the potential to become a regional leader in sustainable aviation.

The MoU comes as part of Pertamina's ongoing SAF activity, including production and certification, Pelita Air's use of SAF and the Cilacap Biorefinery project aimed at converting used cooking oil and other sustainable waste-based feedstocks into SAF.

Risks

  • Feedstock availability and suitability - identifying sufficient sustainable feedstock sources is a core part of the MoU and a potential constraint for scaling SAF production, with implications for energy and aviation supply chains.
  • Technology and certification challenges - developing and certifying SAF technologies remains an area the companies will examine, posing technological and regulatory uncertainties for the aviation and refining sectors.
  • Policy and regulatory uncertainty - the agreement includes support for SAF policy development, indicating that regulatory frameworks will be important and remain a source of uncertainty for industry participants and related markets.

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