The potential of Mg x Co 2− x O 2 as heterogeneous reusable catalyst in transesterification of palm oil to methyl ester was investigated. The catalyst was prepared via co-precipitation of the metal hydroxides at different Mg–Co ratios. Mg 1.7 Co 0.3 O 2 catalyst was more active than Mg 0.3 Co 1.7 O 2 in the transesterification of palm oil with methanol. The catalysts calcined at temperature 300°C for 4h resulted in highly active oxides and the highest transesterification of 90% was achieved at methanol/oil molar ratio of 9:1, catalyst loading of 5.00wt.%, reaction temperature of 150°C and reaction time of 2h. The catalyst could easily be removed from reaction mixture, but showed 50% decrease in activity when reused due to leaching of active sites.