Points Raised by the Palm Oil Farmers Association on Regulation 2/2025 Revision

The Indonesian Palm Oil Farmers Association (Asosiasi Petani Kelapa Sawit Indonesia - “APKASINDO”) has requested that the government revise Regulation of the Minister of Trade No. 2 of 2025 (“Regulation 2/205”) on the Amendment to Regulation of the Minister of Trade No. 26 of 2024 on Export Provisions for Palm Oil Derivative Products (collectively referred to as “Regulation 26/2024”). APKASINDO Chairman Gulat Manurung considers these amendments important for expanding the export market for Indonesian palm oil products, particularly in the wake of the United States’ (“US”) Reciprocal Tariffs.

“With these improvements, our export opportunities can balance the potential decline in foreign exchange reserves due to export restrictions to the United States,” Gulat told Hukumonline.

The tightening of exports for Palm Oil Mill Effluent (“POME”), High Acid Palm Oil Residue (“HAPOR”), and Used Cooking Oil (“UCO”), according to Gulat, should be replaced with a policy to increase export levies on HAPOR and POME. Additionally, in order to meet domestic biodiesel needs, the government is urged to establish competitive reference prices for POME and HAPOR.

Gulat has communicated with relevant Ministries and Agencies to review the existence of this regulation. He hopes that the revision of Regulation 2/2025 will be a step taken by the government to reduce the impact of tariffs on the United States.