Indonesia to require SAF for flights from 2027

Market: Biofuels, Emissions
19/09/24

Indonesia will require flights to use sustainable aviation fuel (SAF) in their fuel mix from 2027, the Co-ordinating Ministry for Maritime Affairs and Investment announced on 18 September during the Bali International Air Show.

International flights departing Indonesia will be required to use 1pc SAF in their fuel mix, or an estimated 60,000 kilolitres (kl), in 2027. This will rise to 2.5pc by 2030, 12.5pc by 2040, 30pc by 2050, and 50pc, or a projected 7.88mn kl, by 2060.

The country's SAF roadmap and policy action plan was also announced on 18 September, and will be implemented as a Presidential Instruction by September. Used cooking oil (UCO) and palm fatty acid distillate (Pfad) were cited as prioritised feedstocks, although other potential feedstocks like palm oil-based feedstocks, coconut, and seaweed will be explored as well.

Crude palm oil (CPO) was identified as the alternative SAF feedstock that is most widely available within Indonesia, with a current excess supply of 16.5mn t after energy and food use, which can be converted into 13.3mn t of SAF. But SAF produced from CPO is estimated to have life cycle emissions of 77-99 gCO2/MJ, above the International Civil Aviation Organisation (ICAO), US and EU standards, limiting its global marketability. Indonesia aims to establish a taskforce to further engage ICAO on this, over a maximum of two years.

SAF Action Plan

A 2025-29 Action Plan was also announced, with three main policy pillars of demand, supply and enablers which were mentioned earlier in the year.

Notable points under the supply pillar includes securing enough domestic feedstocks for SAF production via the hydroprocessed esters and fatty acids (HEFA) pathway – which included a proposed domestic market obligation (DMO) for Pfad, and export quota and/or tariff for UCO. Emission-based incentives for SAF and exploring SAF production through other pathways, like alcohol-to-jet, were also mentioned.

The country's Ministry of Investment said that the country has potential to produce up to 1.72mn kl of SAF, 8.03mn kl of biodiesel, and 1.76mn kl of bioethanol, based on the Strategic Investment Downstream Roadmap over 2023-2040.

Under the enablers pillar, there are plans to appoint a national accreditation body for SAF certification and a domestic SAF certification ecosystem.

Under the demand pillar, the country aims to implement pilot SAF offtake agreements for international flights from Ngurah Rai International Airport, and to increase the SAF mandate at Ngurah Rai, the Soekarno-Hatta International Airport, and other major airports. It also plans for an SAF usage mandate for corporate and government travellers.

South Korea previously announced a 1pc SAF mandate in August for international flights, while Japan proposed stricter rules for domestic SAF producers to cut greenhouse gas emissions from jet fuel use in June, with the discussions to be finalised later this year.

By Sarah Giam

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

07/05/25

Australia’s CER sees disinterest in carbon trading tool

Sydney, 7 May (Argus) — Australia's Clean Energy Regulator (CER) plans to work with existing carbon credit trading platforms to potentially link them to its new registry, following a lack of market interest in a carbon credit trading tool proposed late last year. The CER did not see "a lot of enthusiasm" for the use of a financial instrument developed by the Australian Securities Exchange (ASX) as a trading model for Australian Carbon Credit Units (ACCUs), chair and chief executive David Parker said on 7 May at lobby group Carbon Market Institute (CMI)'s Carbon Farming Industry Forum in New South Wales, Australia. "What people did say was that they wanted us building up infrastructure… linking [over-the-counter] trading platforms into our new registry," Parker noted. The CER had previously planned to develop and operate the so-called Australian Carbon Exchange for spot ACCU transactions, but had already indicated it pushed back on the idea when it consulted on the trading tool late last year. Its proposal would see participants using a Clearing House Electronic Subregister System (CHESS) Depository Interest (CDI) — a mechanism used by the ASX to allow the trading of interests in bonds and some international shares on the exchange. Under the proposed model, market participants would not be required to have a registry account to buy beneficial interests in ACCUs through CDIs. They would be able to trade the CDIs multiple times and would only need registry accounts if they needed to convert the CDIs into ACCUs for actual delivery. Currently, climate solutions and markets firm Core Markets, brokerage firm Jarden, and environmental marketplace Xpansiv's CBL each have separate trading platforms for ACCUs. Exchanges ASX and CME last year launched separate futures contracts for physically-deliverable ACCUs, although trading interest has been very limited so far. Core Markets is working on developing its platform so that it would be able to potentially link to the CER's registry in the future, chief executive Chris Halliwell told Argus on the sidelines of the event on 7 May. The CER launched its new registry late last year. It started issuing the new safeguard mechanism credit units into the new registry, and plans to transfer ACCUs from the existing Australian National Registry of Emissions Units later this year. New units and certificates such as renewable energy guarantees of origin and biodiversity certificates under the nature repair market will be added to the new registry, while large-scale generation certificates and small-scale technology certificates will continue in the renewable energy certificate registry. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

US EIA will not release international outlook in 2025

06/05/25

News

06/05/25

US EIA will not release international outlook in 2025

Washington, 6 May (Argus) — The US Energy Information Administration (EIA) no longer expects to publish one of its major energy reports this year after losing some of its staff through President Donald Trump's efforts to downsize the federal workforce. The EIA does not plan to publish its International Energy Outlook (IEA) — which models long-term global trends in energy supply and demand — this year because of a loss of staff responsible for producing the report, according to an internal email initially reported by the news outlet ProPublica . The EIA confirmed the authenticity of the email. "At this point, you can assume that we will not be releasing the IEO this year," the EIA's Office of Energy Analysis assistant administrator Angelina LaRose wrote in the 16 April email. "This was a difficult decision based on the loss of key resources." Oil and gas producers, traders, utility companies, federal regulators and foreign governments have come to rely on the data and models from the EIA, an independent agency within the US Department of Energy. The 2025 version of the IEO might still be published early next year, the EIA said. The agency for now is focusing on trying to "preserve as much institutional knowledge as possible" with an "all hands-on deck" effort under which remaining staff will document models and procedures on long-term modeling, LaRose wrote in the email. Trump and his administration have worked to cut the size of the government's workforce through voluntary buyouts and a process known as a reduction in force. The EIA has yet to say how many personnel it has lost, but about a third of the agency's 350 staffers have accepted voluntary buyouts, according to a person familiar with the situation. The White House last week proposed an 18pc budget cut for the non-nuclear portions of the Department of Energy, but has yet to say if it is seeking to cut spending at the EIA. Last month, the EIA released its premier report, the Annual Energy Outlook , but omitted its traditional in-depth analysis. A technical issue on 1 May delayed the release of a key natural gas storage report by more than three hours, the EIA said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Germany doubts suspended HVO producer exists

06/05/25

News

06/05/25

Germany doubts suspended HVO producer exists

London, 6 May (Argus) — German regulators have said a producer of hydrotreated vegetable oil (HVO) that has been using the country's Nabisy biomass registry may not exist. The federal office of agriculture and food (BLE) said an investigation begun in mid-April found that biofuels sustainability verification scheme ISCC withdrew the suspended user's certification on 8 January, excluding the operator from the scheme for 48 months because of "a lack of co-operation with the ISCC integrity programme". The BLE had suspended Nabisy access for the company, which had the ID EU-BM-13-SSt-10022652. The company was listed on its ISCC certificate as based in the UAE, and provided an address in Hong Kong for its audit, BLE said. Matching details provided by BLE with Argus research show the producer is likely to be EcoSolution, which said it was producing HVO from crude tall oil, used cooking oil (UCO) and spent bleaching earth oil. The company's audit was done by certification body Certi W Baltic on 5 September 2024, according to ISCC documentation. Argus could not locate a biofuels producer by the name of EcoSolution for comment. Argus asked Certi W Baltic and the ISCC for comment but did not receive responses by the time of publication. BLE said it was suspicious that the concerned producer booked all of its proof of sustainability (PoS) onto the Nabisy account of a supplier whose certification records show an address in the Netherlands. But that company's audit report shows the same Hong Kong address as EcoSolution. ISCC certification of the Dutch supplier remains active, but the BLE also has "considerable doubts" about that company's existence. ISCC audit records show AEY Trading received ISCC 'trader with storage' certification on the same day as EcoSolution, also from Certi W Baltic. Certi W's audit summary shows AEY received an on-site audit on 8 September from the same auditor as EcoSolution. Any PoS issued by the suspended producer, which had been temporarily frozen, have been unblocked and will remain valid based on the 'protection of confidence' principle laid out in the German biofuels sustainability ordinance, which protects buyers in the biofuels market. To delete affected PoS that have been sold to others, the BLE would need to prove the buyer was aware of any fraud in relation to the product purchased. In practice this is "almost impossible", according to German biofuels association VDB. "The protection of confidence principle has become a free pass for lack of due diligence and care," the association said. "Today, European biofuels market participants do not have to worry about any consequences if they buy cheap biofuels with dubious origin." VDB wants urgent reform of the corresponding part of legislation, to grant the BLE more power when it comes to revoking fraudulent sustainability paperwork. PoS that has been re-released into the market could comprise a large amount of HVO, possibly in the hundreds of thousands of tons, according to market participants. By Sophie Barthel and Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

WEF, GenZero launch Asia-Pacific SAF initiative

05/05/25

News

05/05/25

WEF, GenZero launch Asia-Pacific SAF initiative

Singapore, 5 May (Argus) — The World Economic Forum (WEF) and Singaporean investment platform GenZero have jointly launched the Green Fuel Forward initiative to encourage demand for sustainable aviation fuel (SAF) in the Asia-Pacific region. WEF and GenZero — a subsidiary of state-owned investment firm Temasek — announced the launch during the GenZero Climate Summit 2025 in Singapore on 5 May. The initiative aims to scale the region's aviation decarbonisation infrastructure and demand for SAF. It plans to do this through initiatives such as workshops and practical guidance tools to help organisations navigate key topics like environmental integrity, book-and-claim systems, and reporting practices for SAF and SAF certificates. The initiative is expected to bring together airlines, logistics providers, and corporates operating in the region. Organisations including Air New Zealand, Boeing, DHL, the International Energy Agency (IEA), Neste, Qantas, Roundtable on Sustainable Biomaterials (RSBO) and Singapore Airlines have already agreed to participate. Airlines and organisations based in Asia-Pacific which are interested in procuring SAF and SAF certificates can participate in the initiative, said GenZero. By "mobilising corporates and airlines, we can create the certainty needed to spur innovation, scale production, and make lower-emission flights a reality", said GenZero's chief executive Frederick Teo. Finnish SAF producer Neste said it is "committed to contributing our expertise and resources to help scale SAF demand and production," while Singapore Airlines said it is a "useful platform to unite airlines and corporates in building shared demand". By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Australia’s election gives LNG, fuels sector certainty

05/05/25

News

05/05/25

Australia’s election gives LNG, fuels sector certainty

Sydney, 5 May (Argus) — Australia's governing Labor party's second majority term could mean that changes to the offshore permitting regime promised last year are signed into law, while east coast LNG businesses will avoid a planned reservation system proposed by the opposition. Labor's victory at the 3 May election combined with the election of fewer members from the Greens party and climate-focused independents, could mean it faces less pressure to cancel fossil fuel projects. But it will remain reliant on the Greens to pass laws through the nation's upper house — the senate — meaning Labor may need to negotiate the passage of bills with the leftist party if the Liberal-National-based coalition opposes its measures. The Greens ran on a promise to ban new coal, oil and gas projects but won fewer seats than in 2022 because of preference flows. A federal decision on the lifetime extension of the Woodside Energy-operated 14.4mn t/yr North West Shelf (NWS) LNG delayed by Labor, is now looking more positive for the firm. The firm sees approval as vital to progressing its Browse gas development offshore northwestern Australia. Voters' rejection of the opposition Coalition on the nation's east coast means its policy to reserve a further 50-100PJ (1.34bn-2.68bn m³/yr) from the Gladstone-based LNG exporters will not proceed. The result provides an opportunity for certainty and stability for the energy sector, upstream lobby Australian Energy Producers said. The group urged the government to focus on new supply as Australia's gas reserves for domestic use rapidly deplete. The government will need to specify exactly how it aims to secure supplies to ensure stable supply, once coal-fired generators retire at the end of the 2020s and into the 2030s. This is because the nation's integrated system plan is based on Labor's policy of reaching 82pc renewable energy in the power grid, backed up by about 15GW of gas-fired power. Industry will await further direction stemming from the Future Gas Strategy which canvassed solutions to Australia's declining gas supply including new pipelines, storage and seasonal LNG imports. Permitting concerns In the government's previous three-year term, a series of court-ordered requirements to consult with affected Aboriginal groups briefly disrupted multi-billion dollar LNG developments. Labor promised to specify through new laws exactly which groups must be consulted before approvals could be granted. But these were dropped from the agenda in early 2024 following opposition by the Greens. Labor's resources minister Madeleine King blamed the Greens for obstructionist manoeuvres on this legislation, but it remains unclear if and when Labor might introduce such laws. Conversely, the Coalition promised to end government support for anti-gas lobbies such as law group the Environmental Defenders Office — set to continue under Labor. In liquid fuels, Labor's victory should boost Australia's electric vehicle (EV) sales, with emissions standards laws set to remain enforced. The Coalition had said it would soften the laws because of concern over cost of living pressures. Plans to temporarily cut the fuel excise will also not progress. Australia's EV take-up has stalled, and industry has blamed this on poor investment in recharging infrastructure and other policy settings, including the removal of the fringe benefits tax exemption for plug-in hybrid car models. A re-elected Labor government is likely to further policy towards a mandate for sustainable aviation fuel or renewable diesel, given the growing share of Australia's emissions projected to come from the transport industry. It pledged A$250mn ($162mn) for low-carbon liquid fuels development in March , for low-carbon liquid fuels development in March, as part of its commitment to the nascent sector. Local market participants are optimistic that further biofuels support will be provided as urgency to meet net zero ambitions builds, including a 2030 target of 43pc lower emissions based on 2005 levels. About A$6bn/yr of feedstocks like canola, tallow and used cooking oil are exported from Australia, while existing ethanol and biodiesel producers are running underutilised plants, making about 175mn litres/yr at present, because of poorly-enforced blending mandates. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more