InfoSAWIT, JAKARTA – Exports of Palm Oil Mill Effluent (POME) and High Acid Palm Oil Residue (HAPOR) have shown significant trends, surpassing the volume of Crude Palm Oil (CPO) exports. Data indicates that from January to October 2024, POME and HAPOR exports reached 3.45 million tons, while CPO exports only amounted to 2.70 million tons. This surge was also evident in 2023, with POME and HAPOR exports totaling 4.87 million tons, far exceeding the 3.60 million tons recorded for CPO.
Over the past five years (2019-2023), POME and HAPOR exports have grown at an average rate of 20.74 percent per year, while CPO exports have declined by 19.54 percent annually. Trade Minister Budi Santoso, or Mendag Busan, noted that the volume of these residues has significantly exceeded reasonable capacity.
“Normally, the export capacity for residues like POME and HAPOR should only be around 300,000 tons. However, data shows that there is mixing of CPO with POME or HAPOR, inflating the export volume,” Mendag Busan stated in an official statement received by InfoSAWIT on Friday (January 10, 2025).
Mendag Busan warned that if this export surge continues, the availability of CPO as a raw material for the domestic cooking oil and biodiesel industries will be threatened. This situation could also impact the implementation of the palm oil-based biodiesel program at 40 percent (B40).
In response, the government has enacted Minister of Trade Regulation No. 2 of 2025, which officially took effect on January 8, 2025. This regulation revises Minister of Trade Regulation No. 26 of 2024, imposing stricter controls on the export of palm oil derivative products such as POME, HAPOR, and used cooking oil (UCO).
Minister of Trade Regulation No. 2 of 2025 requires that all exports of palm oil derivative products obtain Export Approval (PE) determined through inter-ministerial coordination meetings. The export allocation agreed upon in these meetings is a key requirement for issuing PE.
However, exporters who have obtained PE under the previous regulations are still permitted to continue exporting until their PE expires.
“This policy aims to ensure the availability of raw materials for the people's cooking oil industry and to support the implementation of B40. While there may be impacts on exporters, the interests of the domestic industry remain the top priority,” Mendag Busan emphasized.
Mendag Busan hopes that this policy will help control excessive export practices and secure the supply of CPO raw materials domestically. The government will continue to monitor the impact of this regulation on the industrial and trade sectors.
“The sustainability of the national palm oil industry must be guaranteed, so that government priority programs can be effectively implemented,” concluded Mendag Busan. (T2)
