The Making of Environmentally Friendly Bioavtur

Bioavtur, an environmentally friendly aviation fuel, is being developed in Banyuasin, South Sumatra, but faces raw material supply constraints. The project aims to process coconut oil into feedstock for bioavtur, with Green Power Palembang and Green Power Development Corporation of Japan investing Rp310 billion in the venture. Construction of the coconut oil plant began in early January 2026, with a capacity to process 30,000 tons of coconuts annually, or 100 tons per day.

The plant will ship 100 tons of crude oil daily to Japan for further processing into bioavtur, which could provide feedstock for up to 34 million liters of bioavtur per year, accounting for approximately 0.7% of national aviation fuel demand.

Indonesia has vast potential for this initiative. In 2022, the country produced 15 billion coconuts, with 60% processed domestically, 27% exported, and the remainder consumed domestically. However, the supply of non-standard coconuts—old, small, or damaged—is insufficient to meet the Banyuasin plant's needs. Producing 100 tons of crude coconut oil requires 500 to 600 tons of rejected coconuts daily, or up to 219,000 tons annually, far beyond South Sumatra's annual coconut production of 68,000 tons.

To address this issue, the plant must source coconuts from other regions, increasing distribution costs.

Another challenge lies in the age of smallholder coconut trees in many regions, which average 30 to 40 years old, resulting in declining productivity. Innovation must drive a circular economy, and local governments in South Sumatra must encourage coconut replanting to create a supply chain for the plant. Intensification of smallholder coconut plantations presents a solution for green innovation from production to consumption.

Successful partnerships between investors and communities have been seen in other regions, such as Bridgestone's collaboration with local communities in Kalimantan for rubber and latex processing. Implementing a similar social forestry approach in Banyuasin could establish a sustainable bioavtur feedstock supply chain, ensuring the initiative's success is supported by sustainable social practices.