$Crude Palm Oil Futures(MAR5) (FCPOmain.MY)$ Indonesia want ...

The Malaysian government is targeting the production of aviation fuel, namely avtur, which is mixed with palm oil starting in 2027. Malaysia invites Indonesia to invest together in producing and using sustainable aviation fuel (SAF).
This was conveyed directly by the Malaysian Minister of Industry and Commodities, Johari Abdul Ghani during a meeting with the Coordinating Minister for Economic Affairs Airlangga Hartarto on the agenda of the 12th Ministerial Meeting of the Council of Palm Oil Producing Countries (CPOPC) in Jakarta, Friday (11/29/2024).
"Malaysia sees this as an investment opportunity. And I am sure Indonesia can also take this opportunity as a new potential economic activity in the future," said Johari.
Johari said that currently only two companies in Malaysia are committed to producing palm oil-blended avtur. One is a private company with a production capacity of 350,000 tons, and the other is Petronas which plans to build a plant with a capacity of 650,000 metric tons of SAF.
Therefore, Johari invited Indonesia to collaborate in producing SAF in the future. Because, these two countries are the world's main palm oil producing countries and are the founding countries of CPOPC.
"And I would like to welcome Indonesian investors to collaborate with Malaysia. How do we start this SAF as two countries that want to be one of the largest suppliers of sustainable aviation fuel in the world," said Johari.

"And this is an opportunity because we have a lot of resources here that we can produce SAF," he stressed.
However, Johari stressed, Malaysia has not officially decided the percentage of avtur mixture with palm oil. The decision for the mixture of avtur with palm oil to be used in jet model aircraft is still under discussion, he said.
"So the mandate is not yet decided. Whether you want to use 1% or 2% SAF in any jet fuel, this is something we have not yet decided. It is still a work in progress.
Responding to this, Coordinating Minister for Economic Affairs Airlangga Hartarto said that the government had indeed received the offer from the Malaysian government, and planned to build a production facility in Riau.

However, before that, he said, there must be clarity on the results of the trial that shows the success of using palm oil-mixed avtur whether 1% or 2%. "So I think we will see how the implementation is, whether 1% or 2% will be used for SAF," he said.
What is clear, currently the Indonesian government, he said, will be very careful in producing palm oil-mixed avtur. Because, to anticipate the torrent of negative campaigns in the world against the use of palm oil products.
"We have to be careful because of the campaign outside. They don't recognize CPO. Because most of the flights are outbound flights, so international flights. So I think we, CPOPC have to campaign about SAF too, based on palm oil," said Airlangga.