Setting the Global Stage
At the Sustainable Aviation Futures Congress 2025 in Amsterdam, a dynamic conversation unfolded about the next steps for sustainable aviation fuel (SAF). This discussion occurred against a backdrop of contentious European Union regulations—specifically RED II, RED III, and the ReFuelEU Aviation Regulation—which currently disqualify palm-based feedstocks from SAF eligibility due to concerns about indirect land-use change.
Amid these complex regulations, a deeper narrative emerged. Rather than portraying Indonesia and Malaysia as regulatory outliers, the congress highlighted their capacity to become leaders in the global SAF market—particularly by harnessing sustainable residues and aligning with verified certification pathways.
Charting Regional Blueprints
Indonesia and Malaysia have introduced frameworks that balance domestic resources with international sustainability expectations. Indonesia’s SAF roadmap mandates 1 percent SAF use on international flights by 2027, rising to 50 percent by 2060. Malaysia’s Aviation Decarbonization Blueprint similarly sets out an SAF blending requirement beginning in 2027, scaling up to 47 percent by 2043.
What’s remarkable is the way both nations have embedded scalability into their strategies. Indonesia’s target of producing 306 million litres of SAF annually by 2027 positions it as a viable exporter. Malaysia, on the other hand, has fostered strong industrial partnerships through a consortium that plans two large-scale SAF refineries with a combined annual capacity of one million metric tons.
Unlocking Domestic Feedstock Potential
Indonesia’s status as the world’s top producer of crude palm oil gives it access to a vast reserve of renewable feedstocks—such as palm kernel oil, palm fatty acid distillate (PFAD), and used cooking oil (UCO). The latter alone reached 3.9 million tons in 2023. With PT Pertamina’s ISCC-certified production set to launch in early 2025, Indonesia is aligning both technology and traceability to global SAF standards.
Malaysia mirrors this with equally strong fundamentals. With 18 million tons of crude palm oil produced annually and active investment from EcoCeres, Petronas, Enilive, and Euglena, the country’s infrastructure is being tailored for HEFA-based SAF production. However, logistical hurdles—like feedstock collection systems and regulatory clarity—persist in both nations and require ongoing policy innovation.
Advancing Through Regional Collaboration
At the congress, the Council of Palm Oil Producing Countries (CPOPC) initiated dialogue with the International Civil Aviation Organization (ICAO) to explore fairer certification frameworks. This represents more than a lobbying effort—it signals a strategic alignment with ICAO’s own sustainability goals.
Under CORSIA, ICAO already acknowledges that SAF made from PFAD and UCO can reduce emissions by over 75 percent. By building on this, Indonesia and Malaysia are not only defending their national interests—they are actively contributing to climate solutions for the aviation sector.
SAF as a Climate Catalyst
The role of SAF in national climate targets is increasingly evident. Indonesia has pledged a 43.2 percent reduction in greenhouse gas emissions by 2030 with international support. Malaysia has committed to cutting the emissions intensity of GDP by 45 percent within the same timeframe.
A modest 5 percent SAF blend could yield annual CO₂ savings of nearly 500,000 tons for Indonesia and 250,000 tons for Malaysia. These reductions are not theoretical—they offer tangible progress in sectors that have historically been difficult to decarbonize.
Rethinking Market Access and Equity
Despite their efforts, Indonesia and Malaysia face barriers in accessing the EU SAF market due to the exclusion of palm-derived feedstocks. This creates an uneven playing field and raises important questions about climate justice. Why should low-emission feedstocks from developing countries be penalized based on general assumptions rather than verified sustainability metrics?
Still, there are promising alternatives. The Asia-Pacific region is set to reach a SAF production capacity of 3.5 million metric tons by 2025. Demand from markets such as Japan, South Korea, and North America provides opportunities for regional trade and export growth. For Indonesia and Malaysia, this could translate into significant economic and environmental benefits.
The Next Strategic Frontier
For Indonesia and Malaysia, the path forward lies in scientific validation and regional harmonization. Recognition of palm kernel expeller (PKE) as a residual feedstock under CORSIA, alignment of ISPO and MSPO certification schemes with ISCC standards, and investment in pilot projects are all necessary steps.
Such initiatives underscore a larger truth: sustainability transitions do not happen in isolation. They require ecosystems—of technology, policy, industry, and trust.
Conclusion: Turning Policy into Possibility
The SAF journey of Indonesia and Malaysia is not merely about meeting emissions targets. It’s about reframing what leadership looks like in the climate era. By investing in scalable infrastructure, advocating for inclusive standards, and engaging with international bodies, these nations are rewriting the sustainability narrative from the Global South.
Their strategic engagement and growing production capacity suggest a future where innovation and equity are not mutually exclusive. As SAF continues to evolve, Indonesia and Malaysia remind the global community that inclusive policies, backed by data and dialogue, are essential to ensuring aviation’s low-carbon future.