Jakarta – The Coordinating Ministry for Maritime Affairs and Investment has endorsed a proposal to classify used cooking oil (UCO) as a commodity, paving the way for its down-streaming into biofuel production in a bid to bolster Indonesia’s biofuel reserves.

Sora Lokita, Assistant Deputy for Delimitation of Maritime Zones and Border Areas at the coordinating ministry, emphasized the importance of this academic paper during the dissemination event at Pullman Hotel, Jakarta on Monday (05/08/2024).

“This academic paper is a new milestone that has succeeded in summarizing the issues that require attention. And I am sure this needs to be disseminated to all stakeholders so that various parties understand its content,” said Sora.

He admitted that Indonesia exported a substantial amount of used cooking oil, which is detrimental to the domestic biofuel industry. The government seeks to establish a robust domestic downstreaming sector to meet local demand.

“The Coordinating Minister for Maritime Affairs and Investment is also preparing [policies on] downstreaming. It (exports) won’t be closed 100 percent, but we’re working towards a win-win solution for all,” he said.

The academic paper, produced by Traction Energy Asia and the Climate for Environmental Law and Climate Justice (CELCJ) of the University of Indonesia, advocates for government regulation of used cooking oil management and trade. It highlights the commodity’s potential to contribute to Indonesia’s energy transition while preventing environmental pollution.

It also noted critical issues and underscored the need for stakeholder engagement.

The paper also warns of potential price inflation and greenflation if the industry is not properly regulated and if used cooking oil becomes a sought-after commodity for biofuel production. (*)

Source: TEMPO.CO