PALMOILMAGAZINE, JAKARTA – The Indonesian 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). The policy is outlined in Ministry of Trade Regulation (Permendag) No. 2 of 2025, which amends the provisions in Permendag No. 26 of 2024. The new regulation took effect on January 8, 2025.
Trade Minister Budi Santoso, commonly known as Mendag Busan, stated that the measure aims to ensure the availability of crude palm oil (CPO) for domestic cooking oil production and to support the implementation of the 40% palm oil-based biodiesel program (B40).
“The government’s priority is to secure raw material supply for the domestic cooking oil industry and support the B40 initiative. While this policy may have some impact, safeguarding the interests of the domestic industry is paramount,” Mendag Busan emphasized in an official statement received by Palmoilmagazine.com on Friday (10/1/2025).
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Under Permendag No. 2 of 2025, the export of palm oil derivatives, including POME, HAPOR, and UCO, is only allowed after obtaining approval through inter-ministerial coordination meetings. The export allocation determined in these meetings is a mandatory requirement for obtaining an Export Permit (PE).
Exporters holding PEs issued under the previous regulation, Permendag No. 26 of 2024, are allowed to continue exporting until the permit’s validity expires.
“Export volumes of POME and HAPOR that far exceed reasonable capacities indicate potential mixing of CPO with these residual products,” Mendag Busan warned.
He also highlighted concerns over the diversion of fresh fruit bunches (FFB) for direct processing into POME and HAPOR, which negatively affects conventional palm oil mills. This situation threatens the supply of raw materials for domestic palm oil industries.
Mendag Busan emphasized that controlling exports is crucial to ensuring the sustainability of the national palm oil industry and supporting community welfare through the government’s priority programs. (P2)