Indonesia Proposes Mandatory 5% Palm Oil Waste-Based SAF Policy by 2027
The Indonesian government is advised to implement a mandatory policy for sustainable aviation fuel (SAF) based on palm oil waste, targeting a 5% adoption by 2027 to enhance decarbonization in aviation. The use of palm oil mill effluent (POME) as a feedstock could significantly reduce greenhouse gas emissions. However, a robust traceability system is necessary to prevent raw material misuse. Current regulations face challenges, and the market needs clarity on the pricing of POME and used cooking oil (UCO).
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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.
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