Indonesia maintains ban on crude palm oil waste and used cooking oil exports

Indonesia has confirmed it will maintain its ban on the export of crude palm oil mill effluent (POME) and used cooking oil (UCO). President Prabowo Subianto emphasized that these strategic bio-resources should primarily serve domestic needs for sustainable aviation fuel (SAF) production and the development of the country’s aviation fuel industry.

During the National Coordination Meeting of central and regional governments in Sentul, West Java, President Prabowo stated that palm oil residues and used cooking oil are strategic energy resources that should be prioritized for domestic use rather than exports. He also highlighted Indonesia’s plans to become a leading global producer of aviation fuel derived from bio-based materials, including POME and UCO.

The export ban on crude POME and UCO was first introduced in January 2025 to secure feedstocks for the country’s expanding biodiesel program and emerging bioenergy projects. Refined products, however, remain available for export, ensuring that international trade flows are not disrupted.

Market analysts expect that restrictions on crude waste exports will remain in place for the foreseeable future. At the same time, the market hopes that refined POME and UCO will continue to be freely exported to avoid price spikes and supply imbalances in the region.

Indonesia aims to channel more residues into biofuel and SAF production, reinforcing its role as a key aviation fuel supplier in Southeast Asia. Maintaining the ban on crude palm oil waste and used cooking oil is expected to be a central factor in balancing biofuel supply and demand across the region.

Tags: used cooking oil, export, Indonesia, palm oil, restrictions