Indonesia's POME Fraud Trial Exposes the Cost of Weak Feedstock Traceability


Verified Feedstock Traceability For Biofuels

Eleven defendants have been charged at Indonesia’s Central Jakarta Corruption Court over a scheme that prosecutors say disguised crude palm oil (CPO) exports as palm oil mill effluent (POME) and other residue products between 2022 and 2024, causing state losses of roughly Rp7.37 trillion (about US$414.6 million).

What the Scheme Was

Prosecutors allege that high-acid CPO was deliberately reclassified under Harmonised System codes normally reserved for residue products — POME and palm acid oil — instead of the CPO code that attracts export duties, levies and domestic-market obligations. The misclassification is alleged to have been applied without the required laboratory testing, and to have extended to examinations at the Medan customs laboratory, where results were allegedly directed to classify shipments as POME or mixed oil.

POME matters beyond Indonesia. Because it qualifies as an advanced-biofuel feedstock under EU and US rules, waste-stream feedstocks trade on the strength of their classification. When a fraud trial shows feedstock being relabelled to claim sustainability and duty treatment it does not deserve, it undermines the credibility of the whole waste-derived fuels market.

Why Traceability Is the Answer

The fraud was possible because feedstock changed classification without verified provenance. Klean Industries’ KleanLoop blockchain platform records feedstock origin, movement and processing end to end, so every shipment of a waste-derived fuel or recovered material carries a verifiable chain of custody — the kind of evidence that makes this exact fraud impossible to pass through a supply chain unnoticed.

Learn More:

Partner With The KleanTeam for Verified Feedstock Traceability

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When biofuel feedstock can be relabelled to claim sustainability it does not have, the operators who win are the ones who can prove every tonne on the page is the tonne on the plant floor.

Klean’s Key Advantages:

  • ✅ KleanLoop blockchain delivers end-to-end feedstock and product traceability.
  • ✅ Thirty-plus years engineering commercial pyrolysis, gasification and waste-to-energy plants.
  • ✅ 8 recovered carbon black (rCB) facilities built in India over the past 2 years.
  • ✅ KBR added Klean’s proprietary TyreNova tire-pyrolysis technology to its IP portfolio.

Ready to put verified traceability behind your waste-derived feedstock?

Speak with a Traceability Expert at Klean Industries » GO.


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