Industry Minister Warns Against Large-Scale Palm Oil Exports

JAKARTA, 6 November 2025 – Industry Minister Agus Gumiwang Kartasasmita said the government will ensure exporters comply with regulations. On the same day, the Directorate General of Customs and Excise together with a police task force stopped 87 containers belonging to PT MMS that contained fatty matter worth Rp28.7 billion and weighing 1,802 tonnes. The cargo, intended for China, was deemed inconsistent with the export notification document (PEB).

The government classifies palm oil derivatives, including fatty matter (a biodiesel by‑product used as a solvent), under specific HS codes (Harmonized System classification) and requires accurate declaration in the PEB. Technical specifications prohibit deviations such as HS code evasion. This regulation supports downstream processing (hilirisasi), aiming to add value to the product within Indonesia.

Large‑scale raw palm oil exports could shrink the raw material base for domestic downstream industries, resulting in opportunity loss for Indonesia. The action against PT MMS demonstrates the government’s commitment to protect fiscal and industrial interests. Ongoing monitoring is expected to curb violations and strengthen the domestic supply chain.