Agro Investama Group has taken another strategic step to strengthen Indonesia’s downstream palm oil industry ecosystem. Representing management, Mr. Petrus Tjandra and his team attended an official invitation from the Ministry of Industry for a strategic audience with Mrs. Krisna Septiningrum, Director of Chemurgy, Oleochemicals, and Feed at the Directorate General of Agro Industry, at the Ministry of Industry building in Jakarta.
During the meeting, Agro Investama Group sought support and recommendations from the Ministry of Industry to propose a separate Harmonized System (HS) Code for Palm Mesocarp Oil (PMO) distinct from Crude Palm Oil (CPO). Currently, PMO and CPO are grouped under the exact same tariff code: HS Code 1511.10.00.
This tariff code separation is considered urgent and crucial due to the unique characteristics of PMO extraction technology via Steamless Palm Oil Technology (SPOT), which champions clean production and zero-waste principles. Based on the presentation during the audience, several primary reasons support this proposal:
- Zero Liquid Waste: Unlike conventional palm oil mills that generate massive volumes of Palm Oil Mill Effluent (POME) during CPO production, the SPOT technology extraction process produces zero liquid waste.
- Solid Residue Utilization: Residual fibers from the PMO process are directly converted into valuable biomass, establishing a total zero-residual production cycle.
- Closing Regulatory Loopholes: The absence of a dedicated tariff code has frequently created loopholes where palm oil products are misclassified under residual or waste codes (such as HS Code 2306) to bypass Domestic Market Obligations (DMO) and Export Levies (PE). Separation will effectively close these loopholes.
- Global Market Support (Green Product): A distinct HS Code will grant PMO an official identity as a green product, assisting exporters in navigating international markets with increasingly stringent environmental regulations.
Through this proposed tariff code separation, Agro Investama Group hopes the government will provide regulatory certainty aligned with modern green technology innovations. This step will not only enhance transparent trade governance but also solidify Indonesia’s position as a pioneer of sustainable, efficient, and globally competitive palm oil downstreaming.
Tags: Palm Oil, Red palm oil, SPOT
Facebook
Instagram
Tiktok
Linkedin