Dinasti International Journal of Economics, Finance & Accounting (DIJEFA)
Vol. 7 No. 2 (2026): Dinasti International Journal of Economics, Finance & Accounting (May-June 2026

A Decision-Making Framework for Securing Compliant UCO Supply for SAF Production

Ahmad Tiko Widodo (Institut Teknologi Bandung, Bandung, Indonesia.)
Santi Novani (Institut Teknologi Bandung, Bandung, Indonesia.)



Article Info

Publish Date
25 Jun 2026

Abstract

PT Pertamina Patra Niaga (PPN) faces strategic challenges in sourcing qualified Used Cooking Oil (UCO) to meet Indonesia’s Sustainable Aviation Fuel (SAF) mandates. The government strictly enforces a 1% SAF blend by 2027 and 5% by 2029, pressuring PPN to secure a cost-effective and ISCC CORSIA-compliant supply chain. This study aims to evaluate four strategic alternatives: 100% "Make" UCO, 100% "Buy" UCO, 100% "Make" SAF Domestic, and "Partially Buy" SAF. A quantitative approach using the Analytic Hierarchy Process (AHP) was conducted, collecting primary data through questionnaires from the Board of Directors of PPN's Subholding Downstream. The findings reveal that executives heavily prioritize compliance objectives over short-term commercial gains. The AHP synthesis indicates that the 100% "Make" SAF Domestic strategy is the most optimal (36.2%), strongly supported by a 100% "Buy" UCO upstream model (31.3%). To mitigate supply chain risks and traceability fraud in the informal sector, this study recommends a digitally governed hybrid approach. This involves integrating blockchain traceability and establishing cross-institutional collaborations with the National Nutrition Agency (Badan Gizi Nasional). Ultimately, this framework provides a robust decision tool for establishing compliant and sustainable aviation fuel ecosystems in emerging markets.

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Journal Info

Abbrev

DIJEFA

Publisher

Subject

Economics, Econometrics & Finance

Description

The author is invited to submit a paper for Dinasti International Journal of Economics, Finance & Accounting (DIJEFA). Topics related to this journal include but are not limited to: Accounting and financial reporting Audit Accounting management Taxation Corporate finance Personal finance Financial ...