Platts proposes to launch Indonesia domestic POME assessment, Aug 1

Platts, part of S&P Global Commodity Insights, is proposing to launch a daily assessment for Indonesia domestic palm oil mill effluent, effective Aug. 1, 2025.

Indonesia produces about 2 million mt/year of POME, according to data from S&P Global Commodity Insights. As the country increases the biodiesel blend in road transportation, it has largely reduced the export of POME and kept its production for the domestic market. Indonesia's domestic biodiesel demand is expected to grow further in the near term. The proposed assessment will reflect domestic POME spot prices in this important market.

The proposed Indonesia POME domestic assessment would reflect a free fatty acid (FFA) value of a maximum of 50%, a moisture content of a maximum of 3% and a total fatty matter of a minimum of 95%.

The assessment would reflect a cargo size of 100-2,000 mt, loading one to seven days forward from the date of publication on a delivered-at-place (DAP) Dumai, Sumatra Island, basis. The assessment would also consider cargoes delivering to other locations in the Sumatra Island, including Belawan, Palembang, Lampung and Aceh, by normalizing back to the basis location of Dumai. Other volumes may also be considered by normalizing back to the stated volume specifications. The proposed assessment would reflect cargo values inclusive of 12% value-added tax.

The proposed assessment would have the following specifications:

The proposed assessment would be published in Indonesian Rupiah/kg (IDR/kg), and converted to a US dollar/mt equivalence using the Platts assessed US dollar IDR exchange rate (IDRUS00).

The exchange rate follows the Singapore publishing calendar; Platts will use the last published exchange rate to derive the US$/mt conversion during Singapore holidays.

The proposed daily assessment would be published on Platts Biofuels Alert pages 2310, 2311 and 2312, in the daily Platts Biofuelscan and the Weekly Biomass-Based Diesel Report.

The proposed daily Indonesia POME domestic assessment would reflect a 4:30 pm Penang time market close and follow the Penang publishing schedule.

Platts invites feedback, comments and questions on this proposal by June 27 to MRTS_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.