Indonesian UCO Exporters Lobby vs New Export Regulation

Used cooking oil (UCO) exporters in Indonesia have formed an association to lobby against new export restrictions on the waste biodiesel feedstock that came into force last month on January 24, industry sources said as reported in Argus Media.  The 13-company membership accounts for about 90% of the country’s 25,000-30,000 MT/month UCO export capacity, said the newly elected chairman, Mr. Setiady Goenawan, director of collection firm CV Artha Metro Oil.
The association hopes an audience with the trade ministry will persuade it to drop domestic sales obligation rules for the UCO sector.  The new regulation requires exporters of UCO, palm olein and crude palm oil to submit proof of domestic sales to get export licenses.  The regulation aimed to eased cooking oil prices by ensuring domestic supply at subsidized rates.  Market participants, however, were unsure why UCO has been included in the measure since UCO exporters are generally not involved in palm oil production and do not have access to olein for domestic retailing.