POPSI urges update to Indonesia palm oil downstreaming regulations

The Indonesian Palm Oil Farmers Organization Association (POPSI) is urging the Ministry of Industry to accelerate the revision of Minister of Industry Regulation Number 32 of 2024 regarding the classification of palm oil derivative commodities.

POPSI argues that current regulations are lagging behind the rapid pace of downstream product innovation. This regulatory gap could create trade barriers that eventually impact the entire palm oil ecosystem, potentially reducing the absorption of fresh fruit bunches (TBS) and affecting farmer income.

Specifically, the association noted that many new oleochemical products—including by-products, residues, and refined fractions like Methyl Ester Residue and Fatty Acid Residue—are not adequately accommodated in the existing classification. POPSI is calling for a faster government mechanism to test, identify, and classify these evolving products based on their specific characteristics.