InfoSAWIT, JAKARTA – The government, through the Ministry of Trade, has officially tightened regulations on the export of palm oil mill effluent (POME), high acid palm oil residue (HAPOR), and used cooking oil (UCO). This policy is outlined in Minister of Trade Regulation No. 2 of 2025, which amends the provisions in Minister of Trade Regulation No. 26 of 2024. The new regulations took effect on January 8, 2025.
Trade Minister Budi Santoso, commonly known as Mendag Busan, explained that this move aims to ensure the availability of crude palm oil (CPO) for the people's cooking oil program and to support the implementation of palm oil-based biodiesel at 40 percent (B40).
“The government's top priority is to guarantee the supply of raw materials for the domestic cooking oil industry and to support the implementation of B40. This policy may have impacts, but the interests of the domestic industry are paramount,” said Mendag Busan in an official statement received by InfoSAWIT on Friday (January 10, 2025).
Minister of Trade Regulation No. 2 of 2025 stipulates that the export of palm oil derivative products such as POME, HAPOR, and UCO can only be conducted after obtaining approval through inter-ministerial coordination meetings. The export allocation determined in these meetings is a prerequisite for obtaining Export Approval (PE).
However, exporters who have already obtained PE under the previous regulation, Minister of Trade Regulation No. 26 of 2024, are still allowed to export until their PE expires.
“The volume of POME and HAPOR exports far exceeding reasonable capacity indicates the practice of mixing CPO with original residues,” emphasized Mendag Busan.
Additionally, the significant diversion of fresh fruit bunches (TBS) for direct processing into POME and HAPOR is seen as detrimental to conventional palm oil mills. This situation poses a potential threat to the supply of raw materials for the domestic palm oil industry.
Mendag Busan stressed that controlling exports is important to ensure the sustainability of the national palm oil industry and to support the welfare of the community through government priority programs. (T2)
