Indonesia curbs exports of used cooking oil (UCO) and palm oil mill effluent (POME) to help domestic market

The Indonesian government has introduced a new regulation to control the export of used cooking oil (UCO) and palm oil residue in order to maintain sufficient supply for the domestic market. This move is in line with the government's ambition to increase the percentage of palm oil-based fuel in diesel fuel from 35% to 40%. The regulation now requires all UCO and palm oil residue exporters, including palm oil mill effluent, to obtain an export allocation from the government. The decision was made following claims of mislabeling and exporting of cooking oil under the 'Minyakita' government program and concerns over the scarcity of this product in the domestic market.

The Indonesian government has issued a new regulation to curb exports of used cooking oil (UCO) and palm oil residue in a bid to ensure supply for its domestic market. In a statement, the government said the move was aimed at helping it attain a new mandate starting this year of mixing 40% palm oil-based fuel with diesel fuel (B40), up from the previous 35% mandate. The new regulation, which took effect immediately, requires all exporters of UCO and palm oil residue, including palm oil mill effluent (POME), to acquire an export allocation from the government. Although authorities in Indonesia had been looking into ways to curb UCO exports for some time, the extent of potential restrictions was unclear, the 8 January report said. In December, an official alleged that some cooking oil sold under a government programme called ‘Minyakita’ had been mislabelled as UCO and shipped overseas as a biodiesel feedstock, media reports said. Indonesia mandates all palm oil exporters to sell ...