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The Indonesian government is encouraged to enforce a 5% mandatory sustainable aviation fuel (SAF) policy by 2027, focusing on palm oil waste. Using palm oil mill effluent (POME) could lower greenhouse gas emissions by 79%.

A traceability system is essential to ensure POME is sourced correctly and prevent fraud. Existing regulatory challenges and export restrictions hinder domestic SAF industry readiness, expected to begin operations in early 2027.

POME and used cooking oil (UCO) also offer economic potential for biodiesel. The life cycle emission factor for POME-based SAF is significantly lower than conventional jet fuel. Indonesia could recover approximately 1.5 million tons of oil from POME annually, supporting both decarbonization and a circular economy.