
InfoSAWIT, JAKARTA – M. Salim Simangunsong, the Chairman of the Indonesian Small and Medium Palm Oil Mill Entrepreneurs Association (GAPPKES MIKEMINDO), along with Secretary General Dr. Arie Wijaya, has called on the Ministry of Trade to reconsider Regulation No. 2 of 2025. This regulation, effective from January 8, 2025, tightens the export of palm oil mill effluent (POME), high acid palm oil residue (HAPOR), and used cooking oil (UCO).
According to M. Salim, this policy significantly impacts 527 mini palm oil mills under GAPPKES MIKEMINDO. "Palm oil farmers are struggling to sell their products like HACPO (High Acid Crude Palm Oil), compounded by drastically falling prices. If this situation continues, it will lead to social issues, including mass unemployment," M. Salim stated in a press release to InfoSAWIT on January 22, 2025.
He urged the Ministry of Trade to visit the field and witness the policy's impact firsthand. "We do not oppose the B40 biodiesel program aligned with President Prabowo Subianto's energy security agenda and the net-zero emission target for 2060. However, this policy must accommodate the needs of smallholders," he emphasized.Salim suggested involving mini palm oil mills in the mandatory biodiesel program, both as suppliers of HACPO raw materials and for the production of FAME (Fatty Acid Methyl Esters) and biocatalysts. "This collaboration is crucial for the sustainability of mini mills and for Indonesia to achieve its goal of becoming a global food and energy hub," he added.
In response to allegations of widespread mixing of CPO with POME or HAPOR, as well as processing rotten FFB, M. Salim called for a thorough government investigation. "Mini mills do not produce CPO, and our capacity is limited. Many large mills are now processing palm fruit bunches, disrupting the industry structure," he explained.
According to him, large mills with high production capacities require up to 600 tons of fruit bunches per day, which could sustain 60 mini mills. "If just 30 large mills process fruit bunches, HACPO/HAPOR production could reach 1.62 million tons per year. This directly impacts the sustainability of mini mills," he continued.
Secretary General Dr. Arie Wijaya added that the government needs to reorganize the palm oil industry to prevent further escalation of this issue. "We are ready to discuss with the government to find the best solutions for all parties involved," he concluded.
Given the urgency of this matter, GAPPKES MIKEMINDO hopes that government policies can accommodate the interests of all stakeholders, especially small businesses and palm oil farmers in Indonesia. (T2)