Pertamina Optimistic About Developing Sustainable Aviation Fuel in Indonesia

Bali, September 18, 2024 – PT Pertamina (Persero) expressed its confidence in advancing the development of the Sustainable Aviation Fuel (SAF) business in Indonesia. This optimism was conveyed by the Director of Strategy, Portfolio, and Business Development of Pertamina, A. Salyadi Saputra, during a panel session titled “Global and Regional Collaboration Potential on Sustainable Aviation Fuel” at the Bali International Air Show 2024 on Wednesday (18/09) at Ngurah Rai International Airport, Bali.

Salyadi explained the future development plans for SAF across the entire Pertamina Group, including technology, financial aspects, and support from government policies. These efforts ensure that SAF utilization can grow within Indonesia's aviation industry.

"Pertamina is ready for SAF. Pertamina Patra Niaga has already obtained the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) license and the Renewable Energy Directive-European Union (RED-EU) license to become a supplier or sell SAF. Additionally, Pertamina is continuously upgrading its refineries to become green refineries, ensuring optimal SAF production. We hope that all elements of society, both in Indonesia and internationally, support this effort. With collective awareness, this can become a future priority that benefits everyone," Salyadi stated.

Salyadi continued by highlighting Pertamina's dual role as a State-Owned Enterprise. First, Pertamina is mandated to support the government, particularly in ensuring national energy security. Second, as a business entity, it must maintain healthy and sustainable financial performance, especially as Pertamina continues to develop eco-friendly fuel businesses. Seeing SAF as a potential business in the aviation industry, Pertamina is seriously committed to its development.

"Pertamina already produces biofuels like B35, which has been successfully implemented in Indonesia, and we may soon increase it to B40 or B50. SAF has the advantage of opening up markets not only domestically but also globally, and we are confident in our competitive edge because Indonesia has abundant natural resources that can be utilized," Salyadi concluded.

During the same panel session, the Coordinating Minister for Maritime Affairs and Investment of Indonesia, Luhut Binsar Pandjaitan, similarly conveyed optimism about Pertamina’s potential to develop eco-friendly aviation fuel through SAF.

Luhut believes Indonesia has great potential in the SAF business, but strategic collaboration is needed with global partners. He expressed his excitement about the collaborations already underway between Indonesian industries and other countries, such as Pertamina's partnership with Airbus to explore the development of the SAF ecosystem in Indonesia.

"I believe no country can do it alone. That is why Pertamina is so important for Indonesia. It is a strong state-owned company. We want to see Pertamina involved, but that alone is not enough. We are also inviting other countries, such as international air transport organizations and global companies like Airbus," he said.

According to him, forums and discussions like this are essential not only for sharing experiences and knowledge but also for exploring efficient fuel roadmaps for Indonesia and the world.

"This forum is crucial because we can share experiences. I do not think Indonesia can do it alone, but we can achieve the 2060 zero-emissions target together," Luhut explained.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**