Exporters of used cooking oil (UCO) in Indonesia have formed an association to lobby against new regulations which require proof of domestic sales to obtain export licences, according to industry sources.
The 13-company association represents 90% of the country’s 25,000-30,000 tonnes/month UCO export capacity, according to its newly-elected chairman Setiady Goenawan, director of collection firm CV Artha Metro Oil.
Members were hoping an audience with the country’s trade ministry would persuade it to drop domestic sales obligation rules for the UCO sector, the 25 January Argus Media report said.
Under new regulations introduced in January, exporters of UCO, palm olein and crude palm oil (CPO) must submit proof of domestic sales to obtain export licenses.
Billed as a step to ease cooking oil prices by ensuring domestic supply at subsidised rates, market participants were unsure why UCO had been included in the ruling as UCO exporters were generally not involved in palm oil production and did not have access to olein for domestic retailing, the report said.
“We already help poor people by buying their waste oil, why do we also need to buy and sell olein under these rules?” Goenawan said.
Indonesia's trade ministry could not be reached for immediate comment, Argus Media said.