Indonesia Mandates Sustainable Aviation Fuel Use from 2027

Indonesia's government has decided to mandate the use of Sustainable Aviation Fuel (SAF) starting in 2027, taking a significant step towards reducing greenhouse gas emissions in the aviation sector. The plan aims to enhance the sustainability of air transport and contribute to climate change mitigation efforts. The government has instructed domestic airlines to gradually introduce SAF, with plans to increase the blending ratio in the future. SAF is a renewable fuel produced from sources such as used cooking oil, agricultural waste, and biomass. It is recognized for its potential to significantly reduce lifecycle CO2 emissions compared to conventional jet fuel. Given Indonesia's vast archipelago and its reliance on air transport for connectivity and logistics, this initiative is crucial for the sustainability of the domestic economy and social activities. The SAF mandate is expected to stimulate the growth of domestic SAF production capacity and foster the development of related technologies. However, challenges remain, including establishing a stable SAF supply chain, managing costs, and ensuring compatibility with existing aircraft and infrastructure. The government stated that it would work closely with industry stakeholders and implement necessary support measures to address these challenges. This policy aligns with the global trend towards decarbonizing the aviation industry and is seen as a progressive environmental policy by Indonesia.