JAKARTA, Oct 27 (Reuters) - Indonesia on Friday flew its first commercial flight using palm oil-blended jet fuel, as the world's biggest producer of the commodity pushes for wider use of biofuels to cut fuel imports.

Operated by flag carrier Garuda Indonesia, the Boeing 737-800NG aircraft carried more than 100 passengers from the capital Jakarta to Surakarta city about 550 kilometres (341.75 miles) away, according to CEO of Garuda Indonesia Irfan Setiaputra.

"We will discuss further with Pertamina, Energy Ministry and other parties to ensure this fuel is commercially reasonable," Irfan said during a ceremony, adding the plane was set to return to Jakarta later on Friday.

Garuda conducted several tests including a flight test on the new fuel earlier this month and an engine ground test in August.

The palm-oil blended jet fuel is produced by Indonesian state energy firm PT Pertamina at its Cilacap refinery, using hydroprocessed esters and fatty acid (HEFA) technology and is made of refined bleached deodorized palm kernel oil. (Reporting by Bernadette Christina; Editing by Kanupriya Kapoor)