Indonesia Used Cooking Oil (UCO) Market- Trend Analysis & Forecasts

Indonesia Used Cooking Oil (UCO) Market Overview:
Indonesia’s UCO market, valued at about USD 1.5 billion in 2023, is anchored by an estimated 1.8 million tons of waste oil generated annually, though only 38% is formally collected. Exports reached 350,000 tons in 2022, earning around USD 420 million, with the Netherlands, Spain, and Italy as primary buyers. Domestic consumption remains modest, as biodiesel producers prefer crude palm oil, priced at roughly USD 0.85 per liter compared to USD 0.95–1.00 per liter for UCO. With urban centers like Jakarta and Surabaya serving as collection hubs, formalization of supply chains is expected to gradually lift the sector toward USD 2.7 billion by 2032.

Primary Areas/ Elements of Research & Analysis
The report provides comprehensive and valuable insights into the supply and demand dynamics of the Indonesia Used Cooking Oil (UCO) market. Below are the variables considered and analyzed in the report:
• Supply-demand trends, market growth, and trade
• Market structure, conduct, and performance analysis
• Historical and forecasted market size (volume & value)
• Trade analysis (export & import), including key partners, quantities, values, and price trends
• Supply chain mapping, pricing, and regulatory framework
• Competitive landscape profiling of key players
• Factors influencing market performance, including sustainability trends

Market Growth Factors
Global sustainability policies are propelling demand for Indonesian UCO, with the EU doubling its advanced biofuel targets by 2030 and reducing transport carbon emissions through feedstocks that cut emissions by up to 88%. Trade partnerships add momentum, such as Neste’s commitment to source 250,000 tons annually by 2026, while China’s imports grew 15% in 2023. Domestic initiatives, including Jakarta’s 2022 pilot program that collected 2,000 tons from households, indicate progress in scaling up recovery. Together, these trends underpin a projected market CAGR of 5.8% through 2032.

Market Restraints & Challenges
Despite its potential, over 60% of Indonesia’s UCO remains improperly disposed of or sold informally, undermining traceability and formal revenue generation. Surveys show 70% of households still pour used oil into drains, pointing to weak awareness. Exporters also face compliance costs, with ISCC certification raising expenses by nearly 12%, even as UCO prices fluctuated between USD 900 and USD 1,200 per ton in 2022–23. These inefficiencies, alongside fragmented collection networks, continue to limit the pace of market formalization.

Market Segmentation
Restaurants, hotels, and catering services generated about 0.9 million tons of UCO in 2023, while households contributed 0.7 million tons and industrial food processors another 0.2 million tons. Biodiesel dominates applications, accounting for nearly 75% of Indonesian exports, while oleochemicals and soap manufacturing used about 100,000 tons in 2023. European refiners such as Neste, TotalEnergies, and Eni remain the largest end-users, while local giants like Wilmar, Musim Mas, and Sinarmas control a large share of the domestic trade. By 2032, biodiesel uses are expected to capture 80% of total UCO demand.

Competitive Landscape
The market is moderately consolidated, with Wilmar International, Musim Mas, and Sinarmas Agro controlling more than 40% of formal exports. Wilmar expanded its collection by 25,000 tons in 2022, while foreign firms like Neste and TotalEnergies signed multi-year supply contracts. Smaller city-level collectors still supply domestic soap makers but face growing pressure from certification and traceability requirements. By 2032, consolidation is expected to intensify as larger firms absorb or partner with informal players to meet export standards.

Outlook
From a base of USD 1.5 billion in 2023, Indonesia’s UCO market is projected to reach USD 2.7 billion by 2032, driven by exports rising to nearly 600,000 tons annually. Domestic biodiesel blending will expand only gradually given higher UCO costs, though carbon policies may incentivize greater local adoption. With the EU and China increasing reliance on Indonesian supply, the country is expected to strengthen its position as the world’s second-largest UCO exporter by 2032, balancing both circular economy goals and global energy transition needs.

Scope of the Report:
• Historical Years: 2018-2023
• Base Year: 2024
• Forecast Period: 2025-2032
• Units: Value (US$ Million) and Volume (Thousand Tonnes)
• Segments Covered:
By Source (Households & Commercial Segment (HoReca and Food Processing)
By Collection Model (Organized Networks and Informal Collectors)
By Sales (Domestic Use (Biodiesel, Oleochemicals, and Animal Feed) and Exports)
• 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.

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