InfoSAWIT, JAKARTA – Ministry of Energy and Mineral Resources has officially set Indonesia’s Biodiesel Market Index Price (HIP BBN) for May 2026 at Rp 14,917 per liter, excluding transportation costs, reinforcing pricing certainty for the country’s strategic biofuel sector.

The price took effect on May 1, 2026, under a directive issued by the Directorate General of New and Renewable Energy and Energy Conservation (EBTKE), as part of the implementation of Indonesia’s mandatory biodiesel program under Presidential Regulation No. 132/2024 on Plantation Fund Management.

In the pricing formula, the government fixed the CPO-to-biodiesel conversion value at USD 85 per metric ton, a key component in determining monthly biodiesel prices.

The calculation was based on an average KPB crude palm oil price of Rp 15,695/kg for the March 25–April 24, 2026 reference period, alongside an average Bank Indonesia middle exchange rate of Rp 17,074 per US dollar.

The monthly HIP benchmark remains a crucial instrument in supporting Indonesia’s biodiesel ecosystem, ensuring stable pricing for producers while sustaining domestic palm oil absorption—one of the cornerstones of the country’s energy transition strategy.

For palm oil producers, refiners, and biofuel operators, the revised May benchmark is expected to shape supply planning and distribution strategies throughout the month. (T2)