InfoSAWIT, JAKARTA The Ministry of Energy and Mineral Resources (ESDM) has announced the Market Index Price (HIP) for biodiesel for July 2025, set at Rp 12,874 per liter, reflecting a decrease of Rp 16 compared to June's price of Rp 12,890 per liter.

This decision aligns with the implementation of the Mandatory Biodiesel Program as stipulated in Article 18 paragraph (3) of Presidential Regulation No. 132 of 2024 concerning the Management of Plantation Funds. The conversion rate for Crude Palm Oil (CPO) to Biodiesel is set at 85 USD/MT, with the Market Index Price for Biodiesel (HIP BBN) for July 2025 established at Rp 12,874 per liter, plus transportation costs, effective from July 1, 2025.

According to an official statement cited by InfoSAWIT on Sunday, July 6, 2025, the HIP BBN for biodiesel is calculated based on the provisions outlined in the first dictum of the ESDM Ministerial Decree No. 3.K/EK.05/DJE/2024 regarding the Market Index Price for Biodiesel mixed with diesel fuel, with transportation costs determined by the ESDM Ministerial Decree No. 153.K/EK.05/DJE/2024.

The transportation cost is based on the maximum transportation cost for biodiesel mixed with fuel oil as established in the Ministerial Decree regarding the Market Index Price for biodiesel.

"The conversion value uses the average exchange rate reference from Bank Indonesia for the period of May 25, 2025, to June 24, 2025, which is Rp 16,303," noted the ESDM Ministry regarding the Market Index Price for Biodiesel for July 2025.

This biodiesel HIP serves as a crucial benchmark for the domestic biodiesel sector, aiding in stabilizing cost structures amid fluctuating raw material prices. The establishment of this price also reflects Indonesia's commitment to advancing renewable energy agendas and supporting the palm oil-based biodiesel industry as a sustainable energy alternative. The pricing mechanism for biodiesel HIP plays a vital role in balancing production costs and ensuring its competitiveness in the national fuel market. (T2)