State-owned energy company PT Pertamina has planed to build a green refinery dedicated to producing bioavtur, also known as sustainable aviation fuel (SAF).

The plan was announced by Pertamina Vice President Director Oki Muraza at the Katadata Sustainability Action for the Future Economy (SAFE) 2025 forum in Jakarta on Wednesday, September 10, 2025.

“We aspire to build a green refinery that can produce 100 percent SAF,” Oki said, while adding that the project could become a new economic hub for Indonesia.

He expressed hope that Indonesia would emerge as a regional hub for SAF. “If Japan and South Korea need SAF, they can source it from Indonesia,” he noted.

Currently, Pertamina produces SAF from used cooking oil (UCO) at its Cilacap refinery. Oki confirmed that production would soon expand to the Dumai and Balongan refineries, giving Indonesia three facilities capable of processing UCO into SAF.

Indonesia’s annual bioavtur demand is around 6 million kiloliters, similar to Singapore’s consumption.

Pertamina has already completed its maiden SAF-powered flight using UCO-based fuel produced at its facilities. The demonstration was carried out by Pertamina’s airline subsidiary, Pelita Air, on the Jakarta–Bali route on August 20, 2025.

Pertamina President Director Simon Aloysius Mantiri said the company’s SAF product has secured the International Sustainability & Carbon Certification (ISCC) in line with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), covering UCO collection, refinery production, and distribution.

The SAF has also been certified under the European Union Renewable Energy Directive (RED EU). Pertamina plans to further expand production at its Dumai (RU II) and Balongan (RU VI) refineries.

Simon added that Pertamina will strengthen community involvement in UCO collection through its trading arm Pertamina Patra Niaga, creating opportunities in the local circular economy. On the demand side, SAF usage will be further encouraged, particularly by Pelita Air and international carriers.