Pertamina Expands SAF Feedstock Through Used Cooking Oil

PT Pertamina (Persero) and Indonesia’s National Nutrition Agency (BGN) have signed a memorandum of understanding to develop a circular economy-based energy ecosystem using used cooking oil (UCO) collected from national nutrition service facilities. The collaboration focuses on converting domestic waste oil into Sustainable Aviation Fuel (SAF), Hydrotreated Vegetable Oil (HVO), and biogasoline for Indonesia’s low-carbon energy transition.

The agreement links Indonesia’s large-scale nutrition assistance infrastructure with the country’s renewable energy and decarbonization strategy. Under the initiative, UCO generated by Satuan Pelayanan Pemenuhan Gizi (SPPG) facilities will be collected and processed as feedstock for renewable fuel production, supporting both energy security and waste management objectives.

UCO Collection Network Supports SAF Development
The memorandum was signed at Grha Pertamina in Jakarta on 7 May 2026 by Pertamina President Director Simon Aloysius Mantiri and National Nutrition Agency Head Dadan Hindayana. The event was also attended by Pertamina President Commissioner Mochamad Iriawan and Pertamina Patra Niaga President Director Mars Ega Legowo Putra.

According to BGN, the national nutrition program currently serves approximately 61.99 million beneficiaries, making it one of the world’s largest nutrition distribution programs. The scale of the operation creates a large potential source of recoverable cooking oil for Indonesia’s renewable fuel sector.

Pertamina stated that the collection system will be operated through Pertamina Patra Niaga using its UCollect collection machines. The used cooking oil gathered from SPPG facilities will be directed into renewable fuel processing streams, including SAF and HVO production.

The project forms part of Indonesia’s broader low-carbon fuel strategy and aligns with national Net Zero Emission (NZE) targets through domestic waste utilization and industrial downstreaming.

Why Used Cooking Oil Is Relevant for Sustainable Aviation Fuel
Used cooking oil has become an increasingly important feedstock within the global SAF market because it offers lower lifecycle greenhouse gas emissions compared with conventional fossil-based jet fuel. In hydroprocessing pathways, UCO can be converted into renewable hydrocarbons suitable for aviation fuel blending while reducing dependence on virgin vegetable oils.

Pertamina Director of Transformation and Business Sustainability Agung Wicaksono said UCO remains one of the more efficient feedstocks for SAF and HVO production because of its relatively low lifecycle emission profile. He added that the company’s low-carbon business strategy depends on securing long-term domestic feedstock supplies to meet future decarbonization requirements.

Indonesia’s Ministry of Energy and Mineral Resources, through Ministerial Decree No. 113/2026, has established SAF blending targets ranging from 1% to 5% by 2030. The Pertamina-BGN collaboration is intended to support those targets by creating a structured domestic supply chain for renewable fuel feedstock.

Circular Economy Model Links Food and Energy Systems
Pertamina described the initiative as an integrated approach connecting food security and energy security within a shared industrial ecosystem. The program also addresses environmental concerns associated with improper disposal of used cooking oil, which can contribute to water pollution and waste management challenges.

Through the collection and conversion process, waste material previously treated as a disposal problem is repositioned as an industrial energy resource. The initiative supports Indonesia’s broader circular economy and renewable energy development agenda while creating an additional domestic feedstock stream for the aviation fuel sector.

In the renewable fuels market, UCO-based SAF pathways are increasingly used internationally because they can integrate into existing refinery infrastructure through hydrotreated esters and fatty acids (HEFA) processing technology. Comparable SAF programs in Europe and Asia also rely on waste oils and fats as commercially scalable feedstocks due to established collection systems and lower carbon intensity compared with crop-based alternatives.

The collaboration additionally supports Indonesia’s industrial downstreaming strategy by increasing domestic processing of waste-derived raw materials into higher-value energy products for transportation and aviation applications.

Edited by Natania Lyngdoh, Induportals editor, with AI assistance.

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