InfoSAWIT, JAKARTA – The Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE), has set the Biodiesel Market Index Price (HIP) for September 2025 at Rp13,948 per liter, plus transport costs. This represents an increase of Rp421 compared to August, which was Rp13,527/liter.
This determination is in line with the implementation of the Biodiesel Mandatory Program, as per Article 18 paragraph (3) of Presidential Regulation No. 132 of 2024 on Plantation Fund Management. The conversion amount of Crude Palm Oil (CPO) into Biodiesel is set at US$85/MT, and the New and Renewable Energy (NRE) Biodiesel Market Index Price (HIP) for September 2025 is Rp13,948/liter plus transport costs, effective September 1, 2025.
In an official statement cited by InfoSAWIT on Wednesday (9/3/2025), the amount of the NRE Biodiesel HIP is calculated based on the provisions of the First Dictum of Minister of ESDM Decree No. 3.K/EK.05/DJE/2024 on the Biodiesel NRE Market Index Price Blended with Solar Fuel, and the transport costs are based on the provisions in Appendix I of Minister of ESDM Decree No. 290.K/EK.05/MEM.E/2025.
The transport costs are noted to refer to the maximum transport costs for Biodiesel NRE, which are set in the Ministerial Decree regarding the Biodiesel NRE Market Index Price.
"The currency conversion value uses the average reference rate of Bank Indonesia from July 25, 2025, to August 24, 2025, which is Rp16,316," the Ministry of ESDM stated regarding the September 2025 Biodiesel NRE Market Index Price.
This biodiesel HIP is an important benchmark for the domestic biodiesel sector, helping to stabilize cost structures amidst raw material price fluctuations. This determination also reflects Indonesia's commitment to advancing its renewable energy agenda and supporting the palm oil-based biodiesel industry as a sustainable energy alternative. The mechanism for setting the biodiesel HIP plays a crucial role in balancing the cost of biodiesel production and ensuring its competitiveness in the national fuel market. (T2)
