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Indonesia Used Cooking Oil Market Report

Indonesia Used Cooking Oil Market- Trend Analysis & Forecasts

The Indonesia Used Cooking Oil (UCO) market is rapidly emerging as a critical node in the global biodiesel and oleochemical supply chain, projected to expand at a CAGR of 5.8%...

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Indonesia Used Cooking Oil Market Report

Indonesia Used Cooking Oil Market- Trend Analysis & Forecasts

The Indonesia Used Cooking Oil (UCO) market is rapidly emerging as a critical node in the global biodiesel and oleochemical supply chain, projected to expand at a CAGR of 5.8% between 2024 and 2032. With annual UCO generation estimated at over ** million tonnes in 2023, of which nearly **% is recoverable, Indonesia presents one of the largest collection bases in Southeast Asia. Driven by European demand for low-carbon biofuels, tightening domestic waste management regulations, and rising international trade partnerships, the market is poised to reach a valuation exceeding US$ ** billion by 2032. However, structural challenges in collection networks, regulatory gaps, and competition between local informal recyclers and export-oriented players remain key restraints that will shape growth.


Primary Areas/ Elements of Research & Analysis:

The report offers in-depth and actionable insights into the supply & demand dynamics of the Indonesia Used Cooking Oil (UCO) Market.

Listed are the variables considered and analyzed in the report:

  • Analysis of the Indonesia used cooking oil (UCO) market with respect to supply-demand, growth trends, and trade (export & import) patterns
  • A review of structure, conduct, and performance of the market
  • Historical, estimated, and forecasts of Indonesia used cooking oil (UCO) market size in terms of value (US$) and volume (tonnes)
  • Analysis of country used cooking oil (UCO) trade patterns covering exports, imports, quantities, values, key partners, and trade price trends
  • Detailed mapping of the supply chain, pricing analysis, and regulatory details
  • Competitive landscape analysis, including Indonesia used cooking oil (UCO) market mapping and profiling of key companies (Overview, products/services, & core competencies)
  • Assessment of other relevant factors impacting Indonesia used cooking oil (UCO) market performance

Detailed sections of the report deliver vital statistics and insights, enabling a clearer view of market dynamics and long-term prospects for Indonesia Used Cooking Oil (UCO).

Market/ Product Overview

Indonesia’s UCO market has evolved from being largely informal and localized to becoming a structured export-oriented industry. In 2025, the domestic UCO market size was estimated at US$ ** billion, with about ** million tonnes officially collected and traded, while nearly ** million tonnes were uncollected or processed through informal recycling channels. The bulk of collected UCO is exported to the European Union, where demand for waste-based biodiesel feedstock surged after the Renewable Energy Directive (RED II) mandated advanced biofuel blending targets. In fact, Indonesia supplied over ** thousand tonnes of UCO exports in 2022, generating foreign exchange revenues worth approximately US$ ** million.

On the domestic front, UCO collection is concentrated in urban centers such as Jakarta, Surabaya, Medan, and Bandung, where household and foodservice consumption of cooking oil is high. Indonesia is also the world’s largest palm oil producer, consuming nearly ** million tonnes of cooking oil annually, creating immense UCO generation potential. While large-scale collection companies such as Wilmar Bioenergy and Sinarmas Agro Resources have begun formalizing recovery networks, a significant share remains in the hands of small collectors who sell to local refiners or traders at around US$ **–** per liter.

As the government strengthens waste-to-energy frameworks under its National Waste Management Policy, Indonesia’s UCO industry is expected to witness both increased foreign direct investment and consolidation. Between 2024 and 2032, the market is forecast to grow steadily, supported by export demand and rising domestic adoption in biodiesel blending programs.

Significance of Indonesia in Global Used Cooking Oil (UCO) Supply Chain

Indonesia’s strategic significance lies in its dual role as a massive UCO generator and a reliable exporter to Europe and China. Globally, the UCO trade was valued at US$ ** billion in 2023, with Asia contributing nearly **% of the supply. Indonesia alone accounted for **% of global exports, ranking as the third-largest supplier after China and Malaysia. This position is reinforced by Indonesia’s vast palm oil-driven edible oil consumption base, which ensures consistent UCO generation.

The European Union’s reliance on Indonesian UCO has deepened since 2020, with imports from Indonesia growing at an average annual rate of **%. For example, in 2022, the Netherlands imported ** thousand tonnes of Indonesian UCO for its biodiesel sector, while Spain and Italy collectively accounted for another thousand tonnes. This makes Indonesia not just a regional supplier but also a pivotal enabler of Europe’s carbon-neutral fuel transition.

Moreover, Indonesia’s UCO exports also help balance global waste oil prices. With export values averaging US$ 1,100 per ton in 2023, the country plays an important role in stabilizing feedstock costs for biofuel producers. By 2032, Indonesia’s share in the global UCO supply chain is expected to rise to nearly **%, highlighting its growing strategic influence.

Indonesia Used Cooking Oil (UCO) Supply & Demand Trend

The Indonesian UCO market is shaped by robust supply potential and steadily rising international demand. On the supply side, an estimated ** million tonnes of UCO was generated in 2023, but only about **% entered the formal recovery chain due to fragmented collection systems. Demand, however, is stronger than available formalized supply, particularly from the EU, which imported ** thousand tonnes of UCO from Southeast Asia in 2022, with Indonesia contributing half.

Domestic demand for UCO as biodiesel feedstock is also increasing. The Indonesian government’s B35 mandate (**% biodiesel blending) implemented in 2023 is projected to consume nearly ** million kiloliters of biodiesel annually, opening opportunities for waste-based feedstocks. However, most biodiesel plants still rely heavily on crude palm oil (CPO), given the higher recovery costs of UCO. At present, local biodiesel firms pay about US$ 0.85 per liter for CPO, compared to US$ 0.95–1.00 per liter for UCO. This price differential often discourages domestic use, pushing more UCO into exports.

The demand-supply gap is further complicated by illegal or undocumented trade. Industry estimates suggest that up to ** thousand tonnes of UCO annually bypass formal channels, being sold to small soap manufacturers or exported without proper documentation. Unless addressed, this parallel economy will continue to limit transparent supply growth. By 2032, Indonesia’s formal UCO supply is expected to rise to ** million tonnes annually, balancing against rising EU and regional demand.

Indonesia Used Cooking Oil (UCO) Market Growth Factors

Market Drivers

  • Rising demand for low-carbon biofuels in Europe and China, with UCO cutting emissions by up to 88% compared to fossil diesel
  • Large domestic generation potential supported by 18 million tonnes of cooking oil consumption annually
  • EU advanced biofuel targets under RED II boosting steady long-term demand for Indonesian exports
  • Strong trade partnerships with companies like Neste and TotalEnergies securing multi-year supply contracts
  • Government pilot programs in Jakarta and Surabaya improving UCO collection from households and foodservice outlets
  • Competitive export pricing averaging around USD 1,100 per ton, strengthening global buyer interest

Market Restraints

  • Fragmented and informal collection networks, with more than 60% of UCO bypassing formal channels
  • Low public awareness, with most households still disposing of oil improperly into drains
  • High compliance costs for ISCC and traceability certification, raising operational expenses by up to 12%
  • Price volatility ranging between US$ 900 and USD 1,200 per ton, creating uncertainty for biodiesel producers
  • Limited domestic biodiesel adoption due to higher UCO recovery costs compared to crude palm oil

Indonesia Used Cooking Oil (UCO) Market Segmentation

The Indonesian UCO market can be segmented by source, application, and end-user industries. By source, household and foodservice sectors dominate supply. Restaurants, hotels, and catering services generated about 0.9 million tons of UCO in 2023, representing nearly **% of total recoverable supply. Households contributed another ** million tonnes, though recovery from this segment remains low due to weak collection networks. Industrial food processors accounted for the balance, contributing roughly ** million tonnes annually.

By application, biodiesel production is the single largest consumer of Indonesian UCO exports, accounting for nearly **% of demand. In 2022, Indonesia exported ** million tonnes of UCO for biodiesel processing in Europe, generating over US$ ** million in revenue. Domestic biodiesel plants, however, consumed less than ** million tonnes due to cost competitiveness issues with crude palm oil. Outside biofuels, the oleochemical and soap manufacturing industry represents a key segment, consuming about ** thousand tonnes in 2023 for applications in detergents, surfactants, and lubricants.

End-user segmentation highlights the dominance of European renewable fuel companies, with players such as Neste (Netherlands), TotalEnergies (France), and Eni (Italy) sourcing substantial UCO volumes from Indonesia. Within the domestic landscape, local refiners and exporters such as Wilmar International, Musim Mas, and Sinarmas dominate trade flows, while smaller soap and chemical producers cater to the non-fuel segment. By 2032, biodiesel applications are expected to capture nearly **% of UCO demand, underscoring the export-driven nature of the market.

Indonesia Used Cooking Oil (UCO) Trade (Export & Import) Trend

Indonesia’s UCO trade has grown steadily, with exports increasing from ** thousand tonnes in 2019 to ** thousand tonnes in 2022, generating over US$ ** million in revenues. The European Union remains the primary destination, with the Netherlands, Spain, and Italy collectively accounting for more than **% of shipments. China is also a rising trade partner, with imports from Indonesia crossing ** thousand tonnes in 2023, up **% year-on-year.

Tariff structures are relatively favorable for UCO exports. While crude palm oil faces export levies of up to US$ 200 per ton, UCO enjoys lower duties, often exempt under waste-based product categories. This cost advantage has further incentivized exporters to divert supply from domestic biodiesel production to overseas markets.

On the import side, Indonesia imports negligible volumes of UCO, given its vast domestic generation capacity. However, small volumes of refined waste oils are occasionally imported from Malaysia and Singapore for blending. With trade partnerships deepening, especially under EU-ASEAN sustainability dialogues, Indonesia’s UCO exports are projected to reach ** thousand tonnes annually by 2032, cementing its role as a critical supplier to global low-carbon fuel markets.

Influence of Indonesia in Global Used Cooking Oil (UCO) Price

Indonesia wields significant influence on global UCO prices due to its sizeable export volumes and competitive supply base. In 2022, Indonesian UCO export prices averaged US$ 1,100 per ton, compared to US$ 1,250 per ton from China, giving Indonesian suppliers a cost advantage. This competitive pricing has helped European refiners maintain stable biodiesel margins despite volatile energy markets.

Historically, UCO export prices from Indonesia have tracked crude palm oil trends but with lower volatility. Between 2018 and 2023, UCO prices rose from US$ 750 per ton to a peak of US$ 1,200 per ton during the global energy crisis in 2022. The recovery in 2023 saw prices stabilize around US$ 1,050 per ton, influenced by both EU demand and improved collection rates.

By 2032, Indonesia’s rising UCO exports are expected to exert downward pressure on global prices, keeping average international levels between US$ 950 and US$ 1,100 per ton. This price stabilization will be critical for global biodiesel producers, who rely on predictable feedstock costs to manage profitability.

Market Competitive Landscape

The Indonesian UCO market is moderately consolidated, with a mix of multinational corporations, domestic conglomerates, and small-scale collectors. Leading players such as Wilmar International, Musim Mas, and Sinarmas Agro Resources control over **% of the formal UCO trade, leveraging their integrated palm oil refining and export infrastructure. Wilmar, for instance, expanded its collection network across Java in 2022, increasing UCO recovery by ** thousand tonnes.

Foreign companies are also investing aggressively. Neste Corporation signed multi-year procurement contracts with Indonesian suppliers in 2023, securing ** thousand tonnes of feedstock annually for its renewable diesel refineries in Singapore and the Netherlands. Similarly, TotalEnergies partnered with local firms to expand sourcing capacity in Sumatra.

Smaller domestic players, including city-level collectors and soap manufacturers, account for the balance of the market but often operate informally. The competitive environment is further shaped by government-backed cooperatives, particularly in Jakarta and Surabaya, which have been piloting community-based UCO collection programs since 2021. By 2032, increased consolidation and stricter traceability requirements are expected to push smaller unorganized players either into partnerships with larger firms or out of the market altogether.

List of Key Companies in Indonesia Used Cooking Oil (UCO) Market:

  • Wilmar International Limited
  • Musim Mas Group
  • Sinarmas Agro Resources & Technology (SMART) Tbk
  • PT Dharma Satya Nusantara Tbk
  • Cargill Indonesia
  • PT Apical Group Ltd.
  • PT Indofood Sukses Makmur Tbk
  • PT Bakrie Sumatera Plantations Tbk
  • Neste Corporation
  • TotalEnergies Renewables (France)
  • Eni Sustainable Mobility (Italy)
  • PT Pura Group
  • PT Asianagro Agungjaya
  • PT Multi Nabati Sulawesi
  • PT Tunas Baru Lampung Tbk

Future Outlook

The Indonesian UCO market is poised for steady growth, underpinned by strong international demand and increasing formalization of collection systems. From an estimated US$ ** billion valuation in 2023, the market is projected to surpass US$ ** billion by 2032, representing a CAGR of **%. Export volumes are expected to double from ** thousand tonnes in 2022 to nearly ** thousand tonnes by 2032, driven primarily by Europe’s decarbonization goals.

Domestically, while UCO consumption in biodiesel blending will remain limited in the short term due to cost competitiveness issues, policy interventions such as carbon pricing and renewable energy subsidies could enhance adoption. The government’s goal to reduce **% of national carbon emissions by 2030 further strengthens the long-term case for UCO utilization.

However, realizing this potential will require overcoming regulatory bottlenecks, improving household collection efficiency, and enforcing stricter traceability systems. If addressed effectively, Indonesia will not only strengthen its role as a global UCO supplier but also advance its domestic circular economy and renewable energy transition. By 2032, Indonesia is expected to become the world’s second-largest UCO exporter, shaping both regional and global sustainability landscapes.


Report Coverage

Indonesia Used Cooking Oil (UCO) market report covers historical market data from 2018-2025 and projections to 2032. The report also includes supply & demand and trade (import-export) market analysis. The decision matrix analysis helped in identifying the barriers and their implications on the value chain and different factors of relative significance to the Indonesia Used Cooking Oil (UCO) market are diligently tracked and their impact closely monitored for short, medium, and long-term market cycles. The report's contents cover an analysis of the aspects involved in the Used Cooking Oil (UCO) market such as the parent market, the evolution of the industry, innovative technologies in the manufacturing process, supply chain, and profiling of key market players.

Scope of the Report

Report Attributes Details
Historical Years 2018–2023
Base Year 2025
Forecast Period 2026–2032
Units Value (US$ Million) and Volume (Thousand Tonnes)
Report Coverage Production, Consumption, Export, and Import
Segments Covered
  • By Source (Households & Commercial Segment (HoReca and Food Processing)
  • By Sales (Domestic Use (Biodiesel, Oleochemicals, and Animal Feed) and Exports)
Geographies Covered Indonesia
Companies Profiled The market players include, Wilmar International Limited, Musim Mas Group, Sinarmas Agro Resources & Technology (SMART) Tbk, PT Dharma Satya Nusantara Tbk, Cargill Indonesia, PT Apical Group Ltd., PT Indofood Sukses Makmur Tbk, PT Bakrie Sumatera Plantations Tbk, Neste Corporation (Netherlands/Singapore), TotalEnergies Renewables (France), Eni Sustainable Mobility (Italy), PT Pura Group, PT Asianagro Agungjaya, PT Multi Nabati Sulawesi, PT Tunas Baru Lampung Tbk, and Others.

Research Design

The Indonesia Used Cooking Oil (UCO) market is rapidly emerging as a critical node in the global biodiesel and oleochemical supply chain, projected to expand at a CAGR of 5.8% between 2024 and 2032. With annual UCO generation estimated at over ** million tonnes in 2023, of which nearly **% is recoverable, Indonesia presents one of the largest collection bases in Southeast Asia. Driven by European demand for low-carbon biofuels, tightening domestic waste management regulations, and rising international trade partnerships, the market is poised to reach a valuation exceeding US$ ** billion by 2032. However, structural challenges in collection networks, regulatory gaps, and competition between local informal recyclers and export-oriented players remain key restraints that will shape growth.


Primary Areas/ Elements of Research & Analysis:

The report offers in-depth and actionable insights into the supply & demand dynamics of the Indonesia Used Cooking Oil (UCO) Market.

Listed are the variables considered and analyzed in the report:

  • Analysis of the Indonesia used cooking oil (UCO) market with respect to supply-demand, growth trends, and trade (export & import) patterns
  • A review of structure, conduct, and performance of the market
  • Historical, estimated, and forecasts of Indonesia used cooking oil (UCO) market size in terms of value (US$) and volume (tonnes)
  • Analysis of country used cooking oil (UCO) trade patterns covering exports, imports, quantities, values, key partners, and trade price trends
  • Detailed mapping of the supply chain, pricing analysis, and regulatory details
  • Competitive landscape analysis, including Indonesia used cooking oil (UCO) market mapping and profiling of key companies (Overview, products/services, & core competencies)
  • Assessment of other relevant factors impacting Indonesia used cooking oil (UCO) market performance

Detailed sections of the report deliver vital statistics and insights, enabling a clearer view of market dynamics and long-term prospects for Indonesia Used Cooking Oil (UCO).

Market/ Product Overview

Indonesia’s UCO market has evolved from being largely informal and localized to becoming a structured export-oriented industry. In 2025, the domestic UCO market size was estimated at US$ ** billion, with about ** million tonnes officially collected and traded, while nearly ** million tonnes were uncollected or processed through informal recycling channels. The bulk of collected UCO is exported to the European Union, where demand for waste-based biodiesel feedstock surged after the Renewable Energy Directive (RED II) mandated advanced biofuel blending targets. In fact, Indonesia supplied over ** thousand tonnes of UCO exports in 2022, generating foreign exchange revenues worth approximately US$ ** million.

On the domestic front, UCO collection is concentrated in urban centers such as Jakarta, Surabaya, Medan, and Bandung, where household and foodservice consumption of cooking oil is high. Indonesia is also the world’s largest palm oil producer, consuming nearly ** million tonnes of cooking oil annually, creating immense UCO generation potential. While large-scale collection companies such as Wilmar Bioenergy and Sinarmas Agro Resources have begun formalizing recovery networks, a significant share remains in the hands of small collectors who sell to local refiners or traders at around US$ **–** per liter.

As the government strengthens waste-to-energy frameworks under its National Waste Management Policy, Indonesia’s UCO industry is expected to witness both increased foreign direct investment and consolidation. Between 2024 and 2032, the market is forecast to grow steadily, supported by export demand and rising domestic adoption in biodiesel blending programs.

Significance of Indonesia in Global Used Cooking Oil (UCO) Supply Chain

Indonesia’s strategic significance lies in its dual role as a massive UCO generator and a reliable exporter to Europe and China. Globally, the UCO trade was valued at US$ ** billion in 2023, with Asia contributing nearly **% of the supply. Indonesia alone accounted for **% of global exports, ranking as the third-largest supplier after China and Malaysia. This position is reinforced by Indonesia’s vast palm oil-driven edible oil consumption base, which ensures consistent UCO generation.

The European Union’s reliance on Indonesian UCO has deepened since 2020, with imports from Indonesia growing at an average annual rate of **%. For example, in 2022, the Netherlands imported ** thousand tonnes of Indonesian UCO for its biodiesel sector, while Spain and Italy collectively accounted for another thousand tonnes. This makes Indonesia not just a regional supplier but also a pivotal enabler of Europe’s carbon-neutral fuel transition.

Moreover, Indonesia’s UCO exports also help balance global waste oil prices. With export values averaging US$ 1,100 per ton in 2023, the country plays an important role in stabilizing feedstock costs for biofuel producers. By 2032, Indonesia’s share in the global UCO supply chain is expected to rise to nearly **%, highlighting its growing strategic influence.

Indonesia Used Cooking Oil (UCO) Supply & Demand Trend

The Indonesian UCO market is shaped by robust supply potential and steadily rising international demand. On the supply side, an estimated ** million tonnes of UCO was generated in 2023, but only about **% entered the formal recovery chain due to fragmented collection systems. Demand, however, is stronger than available formalized supply, particularly from the EU, which imported ** thousand tonnes of UCO from Southeast Asia in 2022, with Indonesia contributing half.

Domestic demand for UCO as biodiesel feedstock is also increasing. The Indonesian government’s B35 mandate (**% biodiesel blending) implemented in 2023 is projected to consume nearly ** million kiloliters of biodiesel annually, opening opportunities for waste-based feedstocks. However, most biodiesel plants still rely heavily on crude palm oil (CPO), given the higher recovery costs of UCO. At present, local biodiesel firms pay about US$ 0.85 per liter for CPO, compared to US$ 0.95–1.00 per liter for UCO. This price differential often discourages domestic use, pushing more UCO into exports.

The demand-supply gap is further complicated by illegal or undocumented trade. Industry estimates suggest that up to ** thousand tonnes of UCO annually bypass formal channels, being sold to small soap manufacturers or exported without proper documentation. Unless addressed, this parallel economy will continue to limit transparent supply growth. By 2032, Indonesia’s formal UCO supply is expected to rise to ** million tonnes annually, balancing against rising EU and regional demand.

Indonesia Used Cooking Oil (UCO) Market Growth Factors

Market Drivers

  • Rising demand for low-carbon biofuels in Europe and China, with UCO cutting emissions by up to 88% compared to fossil diesel
  • Large domestic generation potential supported by 18 million tonnes of cooking oil consumption annually
  • EU advanced biofuel targets under RED II boosting steady long-term demand for Indonesian exports
  • Strong trade partnerships with companies like Neste and TotalEnergies securing multi-year supply contracts
  • Government pilot programs in Jakarta and Surabaya improving UCO collection from households and foodservice outlets
  • Competitive export pricing averaging around USD 1,100 per ton, strengthening global buyer interest

Market Restraints

  • Fragmented and informal collection networks, with more than 60% of UCO bypassing formal channels
  • Low public awareness, with most households still disposing of oil improperly into drains
  • High compliance costs for ISCC and traceability certification, raising operational expenses by up to 12%
  • Price volatility ranging between US$ 900 and USD 1,200 per ton, creating uncertainty for biodiesel producers
  • Limited domestic biodiesel adoption due to higher UCO recovery costs compared to crude palm oil

Indonesia Used Cooking Oil (UCO) Market Segmentation

The Indonesian UCO market can be segmented by source, application, and end-user industries. By source, household and foodservice sectors dominate supply. Restaurants, hotels, and catering services generated about 0.9 million tons of UCO in 2023, representing nearly **% of total recoverable supply. Households contributed another ** million tonnes, though recovery from this segment remains low due to weak collection networks. Industrial food processors accounted for the balance, contributing roughly ** million tonnes annually.

By application, biodiesel production is the single largest consumer of Indonesian UCO exports, accounting for nearly **% of demand. In 2022, Indonesia exported ** million tonnes of UCO for biodiesel processing in Europe, generating over US$ ** million in revenue. Domestic biodiesel plants, however, consumed less than ** million tonnes due to cost competitiveness issues with crude palm oil. Outside biofuels, the oleochemical and soap manufacturing industry represents a key segment, consuming about ** thousand tonnes in 2023 for applications in detergents, surfactants, and lubricants.

End-user segmentation highlights the dominance of European renewable fuel companies, with players such as Neste (Netherlands), TotalEnergies (France), and Eni (Italy) sourcing substantial UCO volumes from Indonesia. Within the domestic landscape, local refiners and exporters such as Wilmar International, Musim Mas, and Sinarmas dominate trade flows, while smaller soap and chemical producers cater to the non-fuel segment. By 2032, biodiesel applications are expected to capture nearly **% of UCO demand, underscoring the export-driven nature of the market.

Indonesia Used Cooking Oil (UCO) Trade (Export & Import) Trend

Indonesia’s UCO trade has grown steadily, with exports increasing from ** thousand tonnes in 2019 to ** thousand tonnes in 2022, generating over US$ ** million in revenues. The European Union remains the primary destination, with the Netherlands, Spain, and Italy collectively accounting for more than **% of shipments. China is also a rising trade partner, with imports from Indonesia crossing ** thousand tonnes in 2023, up **% year-on-year.

Tariff structures are relatively favorable for UCO exports. While crude palm oil faces export levies of up to US$ 200 per ton, UCO enjoys lower duties, often exempt under waste-based product categories. This cost advantage has further incentivized exporters to divert supply from domestic biodiesel production to overseas markets.

On the import side, Indonesia imports negligible volumes of UCO, given its vast domestic generation capacity. However, small volumes of refined waste oils are occasionally imported from Malaysia and Singapore for blending. With trade partnerships deepening, especially under EU-ASEAN sustainability dialogues, Indonesia’s UCO exports are projected to reach ** thousand tonnes annually by 2032, cementing its role as a critical supplier to global low-carbon fuel markets.

Influence of Indonesia in Global Used Cooking Oil (UCO) Price

Indonesia wields significant influence on global UCO prices due to its sizeable export volumes and competitive supply base. In 2022, Indonesian UCO export prices averaged US$ 1,100 per ton, compared to US$ 1,250 per ton from China, giving Indonesian suppliers a cost advantage. This competitive pricing has helped European refiners maintain stable biodiesel margins despite volatile energy markets.

Historically, UCO export prices from Indonesia have tracked crude palm oil trends but with lower volatility. Between 2018 and 2023, UCO prices rose from US$ 750 per ton to a peak of US$ 1,200 per ton during the global energy crisis in 2022. The recovery in 2023 saw prices stabilize around US$ 1,050 per ton, influenced by both EU demand and improved collection rates.

By 2032, Indonesia’s rising UCO exports are expected to exert downward pressure on global prices, keeping average international levels between US$ 950 and US$ 1,100 per ton. This price stabilization will be critical for global biodiesel producers, who rely on predictable feedstock costs to manage profitability.

Market Competitive Landscape

The Indonesian UCO market is moderately consolidated, with a mix of multinational corporations, domestic conglomerates, and small-scale collectors. Leading players such as Wilmar International, Musim Mas, and Sinarmas Agro Resources control over **% of the formal UCO trade, leveraging their integrated palm oil refining and export infrastructure. Wilmar, for instance, expanded its collection network across Java in 2022, increasing UCO recovery by ** thousand tonnes.

Foreign companies are also investing aggressively. Neste Corporation signed multi-year procurement contracts with Indonesian suppliers in 2023, securing ** thousand tonnes of feedstock annually for its renewable diesel refineries in Singapore and the Netherlands. Similarly, TotalEnergies partnered with local firms to expand sourcing capacity in Sumatra.

Smaller domestic players, including city-level collectors and soap manufacturers, account for the balance of the market but often operate informally. The competitive environment is further shaped by government-backed cooperatives, particularly in Jakarta and Surabaya, which have been piloting community-based UCO collection programs since 2021. By 2032, increased consolidation and stricter traceability requirements are expected to push smaller unorganized players either into partnerships with larger firms or out of the market altogether.

List of Key Companies in Indonesia Used Cooking Oil (UCO) Market:

  • Wilmar International Limited
  • Musim Mas Group
  • Sinarmas Agro Resources & Technology (SMART) Tbk
  • PT Dharma Satya Nusantara Tbk
  • Cargill Indonesia
  • PT Apical Group Ltd.
  • PT Indofood Sukses Makmur Tbk
  • PT Bakrie Sumatera Plantations Tbk
  • Neste Corporation
  • TotalEnergies Renewables (France)
  • Eni Sustainable Mobility (Italy)
  • PT Pura Group
  • PT Asianagro Agungjaya
  • PT Multi Nabati Sulawesi
  • PT Tunas Baru Lampung Tbk

Future Outlook

The Indonesian UCO market is poised for steady growth, underpinned by strong international demand and increasing formalization of collection systems. From an estimated US$ ** billion valuation in 2023, the market is projected to surpass US$ ** billion by 2032, representing a CAGR of **%. Export volumes are expected to double from ** thousand tonnes in 2022 to nearly ** thousand tonnes by 2032, driven primarily by Europe’s decarbonization goals.

Domestically, while UCO consumption in biodiesel blending will remain limited in the short term due to cost competitiveness issues, policy interventions such as carbon pricing and renewable energy subsidies could enhance adoption. The government’s goal to reduce **% of national carbon emissions by 2030 further strengthens the long-term case for UCO utilization.

However, realizing this potential will require overcoming regulatory bottlenecks, improving household collection efficiency, and enforcing stricter traceability systems. If addressed effectively, Indonesia will not only strengthen its role as a global UCO supplier but also advance its domestic circular economy and renewable energy transition. By 2032, Indonesia is expected to become the world’s second-largest UCO exporter, shaping both regional and global sustainability landscapes.


Report Coverage

Indonesia Used Cooking Oil (UCO) market report covers historical market data from 2018-2025 and projections to 2032. The report also includes supply & demand and trade (import-export) market analysis. The decision matrix analysis helped in identifying the barriers and their implications on the value chain and different factors of relative significance to the Indonesia Used Cooking Oil (UCO) market are diligently tracked and their impact closely monitored for short, medium, and long-term market cycles. The report's contents cover an analysis of the aspects involved in the Used Cooking Oil (UCO) market such as the parent market, the evolution of the industry, innovative technologies in the manufacturing process, supply chain, and profiling of key market players.

Scope of the Report

Report Attributes Details
Historical Years 2018–2023
Base Year 2025
Forecast Period 2026–2032
Units Value (US$ Million) and Volume (Thousand Tonnes)
Report Coverage Production, Consumption, Export, and Import
Segments Covered
  • By Source (Households & Commercial Segment (HoReca and Food Processing)
  • By Sales (Domestic Use (Biodiesel, Oleochemicals, and Animal Feed) and Exports)
Geographies Covered Indonesia
Companies Profiled The market players include, Wilmar International Limited, Musim Mas Group, Sinarmas Agro Resources & Technology (SMART) Tbk, PT Dharma Satya Nusantara Tbk, Cargill Indonesia, PT Apical Group Ltd., PT Indofood Sukses Makmur Tbk, PT Bakrie Sumatera Plantations Tbk, Neste Corporation (Netherlands/Singapore), TotalEnergies Renewables (France), Eni Sustainable Mobility (Italy), PT Pura Group, PT Asianagro Agungjaya, PT Multi Nabati Sulawesi, PT Tunas Baru Lampung Tbk, and Others.

Research Design

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