Exports of POME Surpass CPO Volumes, Indonesia Enforces Stricter Export Regulations

Palm Oil Magazine
Minister of Trade Budi Santoso. Photo by: Special

PALMOILMAGAZINE, JAKARTA – Exports of Palm Oil Mill Effluent (POME) and High Acid Palm Oil Residue (HAPOR) have shown a significant upward trend, exceeding Crude Palm Oil (CPO) export volumes. Between January and October 2024, POME and HAPOR exports reached 3.45 million tons, compared to just 2.70 million tons of CPO. This pattern was also evident in 2023, with POME and HAPOR exports totaling 4.87 million tons, far surpassing CPO exports at 3.60 million tons.

Over the past five years (2019–2023), POME and HAPOR exports have grown at an average annual rate of 20.74%, while CPO exports declined by 19.54% per year. Minister of Trade Budi Santoso, commonly known as Mendag Busan, highlighted that the volume of residual exports has far exceeded reasonable capacities.

Read More

“Under normal conditions, exports of residues like POME and HAPOR should only be around 300,000 tons. However, data indicates CPO is being mixed with POME or HAPOR, inflating export volumes,” Mendag Busan explained in an official statement received by Palmoilmagazine.com on Friday (10/1/2025).

Also Read: Indonesia Tightens Export Regulations on POME and Used Cooking Oil

He warned that if this surge in exports continues, the availability of CPO for domestic cooking oil and biodiesel industries would be at risk, potentially impacting the implementation of the 40% palm oil-based biodiesel program (B40).

In response, the government has enacted Ministry of Trade Regulation (Permendag) No. 2 of 2025, which came into effect on January 8, 2025. This regulation, a revision of Permendag No. 26 of 2024, imposes stricter controls on the export of palm oil derivatives such as POME, HAPOR, and used cooking oil (UCO).

Permendag No. 2 of 2025 requires all exports of palm oil derivatives to obtain an Export Permit (PE) issued after approval from inter-ministerial coordination meetings. The agreed export allocation in these meetings is a prerequisite for obtaining the PE.

Also Read: Indonesia Optimistic to Reach 100 Million Tons of Palm Oil, Supporting B40 Biodiesel

Exporters holding PEs under the previous regulation may continue their exports until the permit’s expiration.

“This policy aims to ensure the availability of raw materials for domestic cooking oil production and support the implementation of B40. While there may be impacts on exporters, prioritizing the domestic industry remains our main focus,” Mendag Busan emphasized.

He expressed hope that the policy would curb excessive residue export practices and secure the supply of CPO for domestic needs. Additionally, the government continues to monitor the impact of the regulation on the industrial and trade sectors.

“The sustainability of the national palm oil industry must be safeguarded to ensure the success of government priority programs,” Mendag Busan concluded. (P2)

READ MORE ON GOOGLE NEWS. or Let's join the Telegram group "Palm Oil Magazine", click the link Channel PalmOilMagazine, and join. You must first install the Telegram application on your android.

Related posts