Pertamina and Airbus Explore Collaboration on Sustainable Aviation Fuel Development in Indonesia

Bali, September 18, 2024 – Consistent in developing its green energy business, PT Pertamina (Persero) collaborated with Airbus to explore opportunities for Indonesia’s sustainable aviation fuel (SAF) ecosystem development.

The collaboration between Pertamina and Airbus was marked by a Memorandum of Understanding (MoU) signing during the Bali International Air Show 2024 on Wednesday (18/09) at Ngurah Rai International Airport, Bali. The signing was represented by the Director of Strategy, Portfolio, and Business Development of Pertamina, Salyadi Saputra, and the President of Airbus Asia Pacific, Anand Stanley.

This agreement forms the foundation of Pertamina and Airbus' collaboration to explore various local raw materials to encourage SAF development in Indonesia. Both parties will map out the available raw materials in the region, assess logistics needs, and explore commercial development opportunities. The results of this study will support SAF’s domestic development and production in compliance with ICAO-CORSIA and EU RED2 requirements.

Pertamina is committed to developing environmentally friendly energy to support the National Roadmap for SAF Development prepared by the Indonesian Government. Pertamina and Airbus will contribute to building domestic capabilities and sharing knowledge in SAF infrastructure, blending processes, SAF certification handling, and other technical aspects at airports.

The President Director of Pertamina, Nicke Widyawati, stated that Pertamina plays an active role in building an environmentally friendly ecosystem. Through green fuel development, Pertamina is determined to fulfill Indonesia's energy resilience and sovereignty mandate.

"This collaboration is a strategic step in supporting Pertamina's commitment to sustainable energy transition and decarbonization of the aviation sector. The partnership with Airbus is expected to enhance Pertamina's ability to innovate and develop the SAF industry ecosystem. Together with Airbus, we will focus on developing SAF, which is expected to support efforts to reduce carbon emissions," said Nicke.

The Chief Sustainability Officer of Airbus, Julie Kitcher, welcomed the collaboration with Pertamina and supported the potential for domestic SAF industry development in Indonesia.

"SAF is an essential step toward decarbonizing the aviation industry, and Airbus is fully committed to accelerating its development and adoption. Indonesia offers significant potential in providing SAF raw materials approved by CORSIA, and we welcome Indonesia's commitment to prioritizing SAF development," said Julie.

Indonesia is projected to be one of the fastest-growing markets in the global aviation industry, with an estimated passenger traffic growth rate of around 7.4% per year. It is more than double the global average growth rate of 3.6%. Additionally, Indonesia holds great potential as a source of raw materials for SAF, with promising resources such as used cooking oil, agricultural residues, and municipal waste.

As a key driver toward decarbonizing the aviation industry, SAF enables an average carbon emission reduction of up to 80% compared to fossil fuels, from production to end-use.

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.**