The plane flew more than 100km from the capital Jakarta to neighbouring city, Bandung.

“Indonesia, as the largest producer, of course needs to innovate the use of palm oil, including in the development of biodiesel, bio jet fuel and also continuing the D100 programme,” economic minister Airlangga Hartarto told a virtual conference, referring to diesel made entirely from palm oil developed by state oil company Pertamina.

Indonesia currently has a mandatory biodiesel programme with 30% palm oil content known as B30. The government is keen to expand the use of vegetable oil for energy and slash fuel imports.

The bio-jet fuel used during the test flight only contained 2.4% palm content, but in a 2015 regulation, Indonesia has mandated this be increased to 5% by 2025.

Although biodiesel promises significantly lower carbon emissions, the land clearance taking place to grow palm oil has raised concerns among environmentalists about deforestation, with the EU looking into banning biodiesel containing palm.

The Energy Ministry on Wednesday said the bio-jet fuel market, assuming daily consumption of 14,000 kilolitres, will have a potential market worth US$77.25 million annually.

“We need 120,000 kiloliters (of palm oil) per year,” Dadan Kusdiana, director-general of renewables at the energy ministry said, adding more research was needed about the commercialisation of the fuel.