Indonesia is exploring ways to integrate Sustainable Aviation Fuel (SAF) into its national biofuel program, with Used Cooking Oil (UCO) emerging as a promising feedstock. A recent briefing by the International Council on Clean Transportation (ICCT) suggests that the government could establish a Used Cooking Oil Fund (UCOF), financed through export levies, similar to the successful palm oil–based biodiesel fund.

The study examined UCO collection practices across Asia and evaluated three potential service fee models for UCO exports. Findings indicate that imposing a service fee of over USD 150 per ton could generate sufficient revenue to subsidize Hydroprocessed Esters and Fatty Acids (HEFA) fuel production, helping Indonesia achieve its 1% SAF blending target by 2027.

Key policy measures include centralizing UCO collection oversight, creating a UCOF to incentivize collection and production, and increasing the current 9.5% export levy to strengthen SAF financing.