Minister of Industry Regulation (Permenperin) No. 32 of 2024 — Classification of Palm Oil Derivative Commodities

Minister of Industry Regulation (Peraturan Menteri Perindustrian, Permenperin) No. 32 of 2024, issued by Indonesia's Ministry of Industry (Kemenperin), classifies palm oil derivative commodities by processing stage. The classification is a reference for implementing downstream processing (hilirisasi) of the palm oil industry, for drafting fiscal and export policy, and for the technical identification of palm oil derivatives. It matters across the value chain, from CPO and palm kernel producers to oleochemical and downstream product manufacturers, because it is the reference for tariff codes in the Indonesian Customs Tariff Book (BTKI) 2022 and for the quality parameters of each product.

Key points

• Palm oil derivative commodities are divided into five groups (I to V), ranging from products of fresh fruit bunch processing and biomass by-products to final downstream products such as packaged food products and functional chemical products.
• The annex lists products with their BTKI 2022 tariff codes and technical identification parameters (for example free fatty acid content, iodine value, and moisture and impurities) for products such as CPO, palm kernels, palm kernel shells, POME oil, IVO, ILO, UCO and PMO.
• The Director General responsible for agro-industry monitors and evaluates the classification periodically, once a year, and at any time if needed.
• Monitoring and evaluation cover the range of palm oil derivative products and their technical identification parameters.
• The Director General must report the results of monitoring and evaluation to the Minister of Industry.
• The regulation was enacted in Jakarta on 16 July 2024 and took effect on the date of promulgation.

Who it affects

Palm oil industry players and producers of derivatives, from CPO and palm kernel producers to oleochemical and downstream product manufacturers.