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 Market Index Price (HIP) for biodiesel at Rp 14,036 per liter for the November 2025 period, excluding transportation costs. The decision is stipulated in Letter No. B-3153/EK.05/DJE.B/2025 dated 16 October 2025.
The pricing aligns with Indonesia’s Mandatory Biodiesel Program, as regulated under Article 18(3) of Presidential Regulation No. 132/2024 on Palm Oil Fund Management. The CPO-to-biodiesel conversion rate is set at USD 85 per metric ton, effective from 1 November 2025.
The calculation refers to Ministerial Decree No. 3.K/EK.05/DJE/2024, which governs the pricing formula for biodiesel blended with diesel fuel. Transportation costs are based on Ministerial Decree No. 290.K/EK.05/MEM.E/2025.
The government used an average Bank Indonesia exchange rate of Rp 16,623 per USD (25 September–24 October 2025) for conversion and final pricing.
This benchmark price serves as the main reference for biodiesel distributors throughout November 2025, ensuring the continuity of the B35 Program, a vital part of Indonesia’s renewable energy transition.
With the set formula and continuous monitoring of global CPO prices, the government expects the HIP mechanism to stabilize renewable energy prices and supply while providing business certainty for Indonesia’s biodiesel industry. (T2)
