Jakarta. Indonesia is exploring microalgae as a potential feedstock for sustainable aviation fuel (SAF), adding another possible source of renewable energy as the government accelerates efforts to reduce fossil fuel imports and strengthen domestic energy security.

Hashim Djojohadikusumo, the president’s special envoy for climate and energy, said he had received instructions from President Prabowo Subianto to assess the potential of microalgae for producing green fuels.

“Microalgae can be a source of SAF or green fuel,” Hashim said at the Investor Daily Summit at the Raffles Jakarta on Wednesday.

Hashim, who is also the president's younger brother, said microalgae cultivation requires several key inputs, including sunlight, land for ponds, labor, and carbon dioxide. He said carbon dioxide from the oil and gas industry could potentially be used as an input for cultivation.

Microalgae can absorb carbon dioxide during growth and produce oils that can potentially be converted into fuels. But turning the technology into a commercially viable source of SAF remains challenging, with questions surrounding cultivation costs, processing technology, production capacity, and the overall lifecycle emissions of the resulting fuel.

The initiative comes as Indonesia expands a broader biofuel strategy covering road transportation, aviation, and other sectors.

The government launched its B50 biodiesel mandate in July 2026, requiring diesel fuel to contain 50% palm oil-based biodiesel. The program followed the B40 mandate introduced in 2025 and is intended to reduce diesel imports while increasing domestic use of palm-based energy resources. The government has said B50 could save the country around Rp170 trillion ($9.5 billion) in fuel import costs in 2026.

B50 is also part of Indonesia’s push to develop higher-value uses for its large palm oil industry. The government is looking beyond conventional biodiesel toward green diesel and bio-aviation fuel, including SAF made from used cooking oil and other potential feedstocks.

Hashim added that microalgae could have applications beyond aviation fuel. The organisms can also be processed into animal feed and protein products, including those derived from Spirulina and Chlorella.

He suggested that microalgae-based protein could potentially support the government’s massive Free Nutritious Meals (MBG) program while reducing Indonesia’s dependence on imported protein.

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