Indonesia Developing Sustainable Aviation Fuel, Eyes Rp12tn in Revenue
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30 May 2024 18:20 WIB
TEMPO.CO, Jakarta - The Indonesian government is in the process of developing sustainable aviation fuel (SAF) and Pertamax Green 95, which are touted to be more environmentally friendly. Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has set a target of earning Rp12 trillion through SAF sales and exports.
“Domestic and export sales of SAF are projected to yield profits exceeding Rp12 trillion per year,” said Luhut, as quoted from his official Instagram account on Thursday, May 30.
This valuation was derived from the economic assessment of Pertamina's biofuel refineries' production capacity. Pertamina, as a frontrunner in the energy transition, has conducted successful static trials of SAF suitable for use in the CFM56-7B jet engine.
“This proves that their product is suitable for use in commercial aircraft,” Luhut added.
Apart from that, the development of the SAF industry will also serve as a gateway for further investment in biofuel refineries from the private sector and state-owned companies.
Citing the International Air Transport Association (IATA), Luhut said that Indonesia is predicted to become the fourth-largest aviation market in the world in the next few decades, assuming that the demand for fuel reaches 7,500 tons liters by 2030.
Luhut said that the surge in aviation activity is accompanied by a rise in carbon emissions, making interventions to mitigate carbon emissions imperative. “Based on various data and studies, I can conclude that SAF is the most effective solution for realizing an environmentally friendly aviation future in Indonesia,” he said, underlining that it represents not just an innovation but a commitment to curbing global carbon emissions.
“I expect that after the presidential regulation is issued, we can launch the legal framework for SAF no later than the Bali International Airshow 2024 in September,” said Luhut.
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