Indonesian state energy company Pertamina has disclosed that its sustainable aviation fuel has secured a purchase contract from Cathay Pacific for approximately 7,000 kilolitres in 2026, according to Wenny Ipmawan, Pertamina's SVP Business Sustainability, speaking in Jakarta. Ipmawan described Pertamina's SAF development as part of an effort to optimise use of biodiesel-related capability while expanding the company's low-carbon energy business lines.
What Pertamina Is Producing Now, and What It Plans to Build
Pertamina currently produces SAF at its existing refineries through co-processing, using used cooking oil (UCO) as feedstock, with UCO-SAF developed using a catalyst created by Pertamina's own Research & Technology Innovation unit. For the longer term, Ipmawan said Pertamina plans a dedicated biorefinery at its Cilacap RU IV refinery complex, designed specifically to process UCO into SAF and other biofuel products, targeting operations from September 2029 with capacity of roughly 860 to 870 kilolitres per day, equivalent to about 280,000 to 288,000 kilolitres a year depending on the source quoted. The project is described as a roughly USD 1.1 billion investment on a 17.5-hectare site, and Pertamina estimates it will need approximately 318,000 tonnes of UCO supply annually to run at that capacity.
How the 2026 Contract Fits Into a Longer Relationship
Cathay Pacific and Pertamina signed a strategic partnership to advance SAF development in November 2025, meaning this 7,000-kilolitre contract represents a concrete commercial volume following an earlier framework-level agreement rather than a newly formed relationship. Ipmawan's framing was straightforward: customers are already willing to use Pertamina's SAF, with Cathay Pacific named as an example.
Why Regulation Is Part of the Message
Ipmawan was explicit that SAF development in Indonesia still needs regulatory support, specifically a mandatory SAF blending requirement in jet fuel of the kind already adopted in several other countries, positioning Pertamina's current progress as occurring ahead of, rather than because of, a settled domestic mandate. His comments came as Pertamina prepares for the introduction of such a mandate, whose scope and timing the reporting does not detail.
A Possible Second Use for the Same Feedstock
Ipmawan also noted that UCO processed at Pertamina's refineries could potentially be used to produce green gasoline, indicating Pertamina sees the same feedstock supporting more than one low-carbon product line, rather than UCO being committed exclusively to SAF.
Source: Warta Ekonomi, 30 September 2026.
