Indonesian used cooking oil ( UCO ) exporters will form an association to lobby against new export restrictions that will curb overseas sales of the waste biodiesel feedstock from today , sources close to the matter told Argus . Exporters of UCO , palm olein and crude palm oil ( CPO ) must start submitting proof of domestic sales to obtain export licenses in line with new requirements Jakarta an nounced last week . The measure has been billed as a step to ease cooking oil prices by ensuring domestic supply at subsi dised rates , but market participants are unsure why UCO has been included in the ruling . Palm olein and CPO exporters can retail a percentage of their cooking oil domestically to conform to the new rules , but there is no domestic market for UCO as Indonesian biodiesel producers are subsidised to run abundant cheaper palm oil feedstocks . UCO exporters are generally not in volved in palm oil production and do not have access to olein for domestic retailing . In reaction to the regulations , the country’s UCO export ers are gathering in Jakarta today , aiming to create an industry association and elect a leader . The newly – formed organisation then plans to meet with the trade ministry to persuade it to adjust domestic sales obligation rules specifi cally for the UCO sector .