InfoSAWIT, JAKARTA – Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has set the Market Index Price (HIP) for biodiesel under the Biofuel (BBN) program for March 2026 at Rp13,980 per liter, excluding transportation costs.
The price was established through a letter issued by the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), numbered B-624/EK.05/DJE.B/2026, dated February 27, 2026, regarding the Biodiesel Market Index Price for March 2026.
According to the letter, the determination of the biodiesel HIP is part of the implementation of the mandatory biodiesel program, in line with Article 18 paragraph (3) of Presidential Regulation No.132/2024 on Plantation Fund Management.
The document states that the biodiesel price is calculated based on a formula referring to the average Crude Palm Oil (CPO) price from KPB auctions, combined with conversion factors and distribution costs.
“The biodiesel HIP is calculated based on the provisions stated in the First Dictum of the Minister of Energy and Mineral Resources Decree No.3.K/EK.05/DJE/2024 on the Market Index Price for Biodiesel Biofuel,” the letter explained, as reviewed by InfoSAWIT on Saturday (March 7, 2026).
The attachment to the letter notes that the average CPO price from KPB auctions between January 25 and February 24, 2026 was recorded at Rp14,639 per kilogram.
The calculation formula applied is:
HIP = (Average KPB CPO Price + 85 USD/ton × 870 Kg/m³) + Transportation Cost.
Based on this formula, the government set the March 2026 biodiesel HIP at Rp13,980 per liter, with additional transportation costs depending on distribution regions.
Meanwhile, the exchange rate used in the calculation refers to the average Bank Indonesia middle exchange rate between January 25 and February 24, 2026, which stood at Rp16,819 per US dollar.
The biodiesel HIP serves as a reference for biodiesel distribution blended with diesel fuel in the implementation of Indonesia’s national biodiesel mandatory program, which aims to promote renewable energy use while increasing domestic palm oil absorption. (T2)
