InfoSAWIT, JAKARTA – Indonesia's Ministry of Energy and Mineral Resources (ESDM) has officially set the Market Index Price (HIP) for biodiesel at Rp14,562 per liter for July 2026, excluding transportation costs, providing the pricing benchmark for the country's mandatory biodiesel program that took effect on July 1, 2026.
According to the Ministry of Energy and Mineral Resources, as reported by InfoSAWIT on Monday (July 6, 2026), the pricing was announced by the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) through Letter No. B-1924/EK.05/DJE.B/2026, dated June 29, 2026, addressed to the Director General of Budget at the Ministry of Finance.
The ministry confirmed that the conversion factor for Crude Palm Oil (CPO) to biodiesel remains at USD85 per metric ton, while the biodiesel price calculation continues to follow the formula stipulated under Ministerial Decree No. 3.K/EK.05/DJE/2024. Transportation costs are determined separately under Ministerial Decree No. 290.K/EK.05/MEM.E/2025.
According to the official pricing formula, the July biodiesel HIP was calculated using an average KPB CPO price of Rp15,217 per kilogram recorded between May 25 and June 24, 2026. The calculation also incorporated the fixed conversion value of USD85 per metric ton before transportation costs were added according to each distribution region.
The ministry also used the average Bank Indonesia middle exchange rate of Rp17,895 per US dollar during the same period, resulting in a biodiesel market index price of Rp14,562 per liter, excluding freight charges.
The monthly HIP serves as a key pricing mechanism to ensure certainty for biodiesel producers while supporting the implementation of Indonesia's mandatory biodiesel blending program.
The policy continues to strengthen domestic utilization of palm oil as a renewable energy feedstock, helping stabilize the national palm oil industry while reducing dependence on fossil fuels and advancing Indonesia's broader energy transition agenda.
Through the same official letter, the Directorate General of EBTKE reaffirmed its commitment to promoting clean energy development through transparent governance and high-quality public services in implementing Indonesia's renewable energy policies. (T2)
