Background of the Permendag 2/2025
In early 2025, the Indonesian Ministry of Trade issued Regulation No. 2 of 2025 (Permendag 2/2025), updating the provisions on the export of palm oil derivative products. The policy aims to strengthen oversight of products like Palm Oil Mill Effluent (POME), High Acid Palm Oil Residue (HAPOR), and Used Cooking Oil (UCO).
Primary Objectives
This regulation seeks to:
Ensure domestic raw material availability, especially for the "people's cooking oil" program.
Support the implementation of 40% palm oil-based biodiesel (B40), which aligns with the government's commitment to reducing carbon emissions.
Key Points of the Policy
Stringent Export Regulation: Exporters must secure export permits through the INATRADE system, accompanied by documents like a Taxpayer Identification Number and Business Identification Number (NIB).
Interagency Synchronization: Coordination among ministries determines the allocation of palm oil derivative exports. Decisions are made through interagency meetings involving relevant institutions.
Export Realization Reporting: Exporters must submit monthly reports detailing realized and unrealized exports.
Penalties for Non-compliance
The regulation stipulates administrative sanctions for non-compliant exporters, such as:
Export permit suspension.
Delayed processing of new permit issuance.
Prohibition from applying for permits until reporting obligations are fulfilled.
Impact on the Industry
This policy significantly affects businesses and industries, including:
Biodiesel Industry: Secures raw material supplies to achieve the B40 target.
Exporters: Faces stricter supervision but gains opportunities to contribute to sustainability efforts.
Environment: Expected to reduce pollution from palm oil waste.
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