IMARC Group, a leading global market research and management consulting firm, has published its latest market intelligence report on the Indonesia used cooking oil market. The Indonesia used cooking oil market size reached USD 88.4 Million in 2025 and is projected to reach USD 141.2 Million by 2034, exhibiting a CAGR of 5.18% during 2026-2034. Growth is being driven by extensive palm oil consumption, increasing waste oil recovery, rising demand for biodiesel feedstock, and growing interest in sustainable aviation fuel production.

Used cooking oil is becoming an increasingly valuable resource within Indonesia's circular economy, connecting the country's extensive food service industry with renewable energy and recycling applications. The widespread use of palm oil across households, restaurants, street food vendors, and food processing facilities generates substantial quantities of waste oil that can be collected and converted into useful industrial products. At the same time, the aviation industry's growing focus on reducing carbon emissions is creating opportunities for used cooking oil-derived sustainable aviation fuel. Investments in collection networks, recycling infrastructure, and advanced refining technologies are further supporting market development, positioning used cooking oil as an important feedstock for Indonesia's evolving renewable energy and waste management industries.

Indonesia Used Cooking Oil Market at a Glance:

• Market Size (2025): USD 88.4 Million
• Market Forecast (2034): USD 141.2 Million
• Growth Rate (2026-2034): CAGR of 5.18%
• Base Year: 2025 | Historical Period: 2020-2025 | Forecast Period: 2026-2034
• Key Source Segments: Food Processing Industry, HoReCa, Household, and Others
• Key Application Segments: Biodiesel, Oleochemicals, Animal Feed, and Others

How Technology and Sustainability Are Reshaping the Future of the Indonesia Used Cooking Oil Market

• Sustainable Aviation Fuel Production: The development of used cooking oil-derived sustainable aviation fuel is creating new opportunities for waste oil collection and processing businesses. In July 2025, Pertamina produced bioavtur derived from used cooking oil at its Cilacap refinery, demonstrating progress in converting waste materials into aviation fuel.
• Digital Collection and Traceability Systems: Digital platforms and data analytics can help collection companies identify waste oil sources, optimize transportation routes, monitor feedstock quality, and improve supply chain transparency. These technologies can support more efficient collection from restaurants, hotels, food processing facilities, and households.
• Advanced Recycling and Processing Infrastructure: Investments in waste oil collection, pretreatment, and refining capabilities are supporting the conversion of used cooking oil into higher-value products. Improved processing infrastructure can help businesses meet the requirements of biodiesel, oleochemical, and other industrial applications while strengthening the country's circular economy.

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Indonesia Used Cooking Oil Market Trends and Drivers:

Demand for used cooking oil is being supported by Indonesia's extensive palm oil consumption across households, restaurants, street food businesses, and industrial kitchens. As one of the world's major palm oil producers and consumers, Indonesia generates substantial volumes of waste oil through everyday cooking and commercial food preparation. The widespread availability of this material creates opportunities for collection businesses, recyclers, and renewable fuel manufacturers. According to the United States Department of Agriculture, Indonesia's palm oil output was expected to increase by 3% to 47 Million Tons during the 2025-26 season, supporting the broader palm oil supply chain from which used cooking oil is generated.

The growing emphasis on sustainable aviation fuel represents another important driver. Airlines, fuel producers, and energy companies are exploring alternative feedstocks that can help reduce lifecycle greenhouse gas emissions. Used cooking oil is gaining attention because it can be processed into renewable fuels, including sustainable aviation fuel, subject to appropriate refining and certification requirements. In July 2025, Pertamina produced bioavtur derived from used cooking oil at its Cilacap refinery. Furthermore, in January 2025, Kilang Pertamina Internasional planned to deliver its initial certified sustainable aviation fuel in Indonesia using used cooking oil as feedstock, with the Green Refinery Cilacap reported to have the capacity to process 6,000 barrels of used cooking oil daily for hydrotreated vegetable oil and sustainable aviation fuel production.

A third driver is the increasing focus on waste management, recycling, and circular economy practices. Improper disposal of used cooking oil can contribute to drainage blockages and environmental pollution, while organized collection allows the material to be reused as an industrial resource. Food service operators, recycling companies, and retail networks are increasingly exploring collection arrangements to improve recovery rates and establish dependable feedstock supplies. In July 2025, Alfamart Indonesia invested Rp16.2 Billion in PT Noovoleum Indonesia Investama, a company focused on used cooking oil recycling. Such commercial initiatives are helping create new opportunities across the waste oil value chain, although market expansion continues to depend on collection efficiency, feedstock quality, processing costs, and the availability of downstream buyers.

Government Schemes and National Initiatives Supporting Market Development:

• Indonesia's Biodiesel Development Program: Indonesia's biodiesel blending policies support the broader domestic biofuel industry by encouraging the use of renewable fuel feedstocks. Although palm oil-based feedstocks remain central to the country's biodiesel industry, used cooking oil can provide an additional waste-derived resource where technically and economically suitable.
• Renewable Energy and Energy Diversification: National efforts to strengthen energy security and diversify energy sources create opportunities for renewable fuel producers. The recovery and conversion of used cooking oil can contribute to these objectives by turning waste materials into useful energy resources.
• Sustainable Aviation Fuel Development: The development of used cooking oil-derived aviation fuel is creating opportunities for investment in refining technologies, feedstock sourcing, and supply chain partnerships. Pertamina's activities at its Cilacap refinery demonstrate progress in developing domestic capabilities for waste-based aviation fuel production.
• Waste Management and Circular Economy Practices: Improved waste collection and recycling systems can help reduce improper disposal and increase the productive utilization of used cooking oil. Cooperation among local authorities, food service businesses, collection companies, and recyclers can support better recovery practices.
• Private-Sector Investment in Used Cooking Oil Recycling: Commercial investments in collection and recycling businesses are helping strengthen the market's infrastructure. Alfamart Indonesia's investment in PT Noovoleum Indonesia Investama in July 2025 illustrates growing business interest in developing waste oil recovery opportunities.

Indonesia Used Cooking Oil Market Industry Segmentation:

The report has segmented the market into the following categories:

Breakup By Source:

• Food Processing Industry
• HoReCa
• Household
• Others

The food processing industry and HoReCa sector generate used cooking oil through commercial food preparation, frying, and food manufacturing activities. Hotels, restaurants, and cafés can provide recurring volumes of waste oil, creating opportunities for collection businesses that establish reliable sourcing arrangements. The household segment also contributes to market supply through everyday cooking activities, while the others category includes additional sources of used cooking oil. The availability of collection infrastructure, storage facilities, and convenient disposal arrangements influences the volume of oil recovered from each source.

Breakup By Application:

• Biodiesel
• Oleochemicals
• Animal Feed
• Others

Biodiesel represents an important application for used cooking oil because the material can be processed into renewable fuel, supporting efforts to diversify energy resources and reduce waste. Oleochemicals provide another potential outlet, with suitable processed oil serving as a raw material for selected industrial applications. Animal feed is also included in the report's application segmentation, subject to applicable safety standards and regulatory requirements. The others category covers additional uses of used cooking oil across relevant industrial and recycling applications. Demand across these segments is influenced by feedstock quality, processing economics, regulatory requirements, and downstream market conditions.

Breakup By Region:

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

The Java region offers opportunities for used cooking oil collection due to its extensive urban population, food service industry, and commercial activity. Sumatra's important role in Indonesia's palm oil economy provides a relevant foundation for waste oil generation and recovery. Kalimantan and Sulawesi offer opportunities associated with urban development, commercial food preparation, and expanding regional economies, while the others category includes the remaining regional markets. Regional collection density, transportation costs, access to recycling facilities, and proximity to downstream fuel producers influence market development across the country.

Competitive Landscape:

The Indonesia used cooking oil market involves waste oil collection businesses, recycling companies, renewable fuel producers, and organizations investing in circular economy solutions. Competition is influenced by sourcing relationships, collection coverage, feedstock quality, processing capacity, transportation efficiency, and access to downstream buyers.

Key commercial developments include:

• Alfamart Indonesia
• PT Noovoleum Indonesia Investama
• Kilang Pertamina Internasional
• Pertamina

Alfamart Indonesia's investment in PT Noovoleum Indonesia Investama highlights commercial interest in expanding used cooking oil recycling. Meanwhile, Kilang Pertamina Internasional and Pertamina are involved in developing waste oil-derived renewable fuel applications, including sustainable aviation fuel. These developments illustrate the participation of retail, recycling, and energy businesses across different stages of the value chain. The market research report also examines market structure, key player positioning, competitive strategies, and detailed profiles of major companies.

Market Concentration Analysis:

• The Indonesia used cooking oil market includes multiple waste oil sources, including households, restaurants, hotels, and food processing facilities. The fragmented nature of supply creates opportunities for collection businesses that can establish dependable sourcing partnerships and efficient logistics networks.
• Competition is influenced by collection coverage, feedstock quality, transportation costs, processing capabilities, and relationships with downstream buyers. Businesses that can secure consistent volumes of properly handled used cooking oil may be better positioned to serve renewable fuel and industrial customers.
• Strategic investments and collaborations are supporting the development of collection and recycling infrastructure. Alfamart Indonesia's investment in PT Noovoleum Indonesia Investama and Pertamina's activities in used cooking oil-derived aviation fuel demonstrate growing interest in converting waste oil into higher-value products. However, market concentration and individual company shares should be assessed using verified company-level data rather than inferred from individual announcements.

What Does the Full Report Cover?

• Historical, current, and forecast market size for the Indonesia used cooking oil market from 2020 to 2034
• Market breakup by source, application, and region
• Source-level analysis covering the food processing industry, HoReCa, household, and others
• Application-level analysis covering biodiesel, oleochemicals, animal feed, and others
• Regional analysis covering Java, Sumatra, Kalimantan, Sulawesi, and others
• Key growth drivers, restraints, opportunities, and challenges shaping the market
• Industry trends related to waste oil collection, recycling, and renewable fuel production
• Competitive landscape, market structure, and key player positioning
• Recent industry developments and emerging opportunities across the value chain

Recent News and Developments in the Indonesia Used Cooking Oil Market

• January 2025: Kilang Pertamina Internasional planned to deliver its initial certified sustainable aviation fuel in Indonesia using used cooking oil as feedstock. Its Green Refinery Cilacap was reported to have the capacity to process 6,000 barrels of used cooking oil daily for the production of hydrotreated vegetable oil and sustainable aviation fuel, with projected annual output of approximately 300,000 kiloliters.
• July 2025: Pertamina produced bioavtur derived from used cooking oil at its Cilacap refinery in Indonesia, highlighting progress in the development of domestic waste-based aviation fuel capabilities.
• July 2025: Alfamart Indonesia invested Rp16.2 Billion in PT Noovoleum Indonesia Investama, a company focused on used cooking oil recycling. The investment reflected growing commercial interest in collection systems and recycling partnerships.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

Key Questions This Report Answers

• How big is the Indonesia used cooking oil market, and what is its growth outlook through 2034?
• What are the key growth drivers, restraints, and opportunities in the Indonesia used cooking oil market?
• Which source segments contribute to the generation of used cooking oil?
• Which application segments utilize used cooking oil across Indonesia?
• Which regions are covered in the Indonesia used cooking oil market report?
• How are biodiesel and sustainable aviation fuel developments influencing market demand?
• Who are the key players in the Indonesia used cooking oil market, and how is the competitive landscape evolving?
• What role do collection networks, recycling infrastructure, and waste management practices play in market development?

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