InfoSAWIT, JAKARTA – Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has set the Market Index Price (HIP) for biodiesel at Rp15,025 per liter for September 2026, excluding transportation costs.
The September figure represents an increase of Rp101 per liter from the previous month and took effect on September 1, 2026. The price forms part of the government’s mandatory biodiesel program and provides a reference for biodiesel blended into diesel fuel.
The government’s determination follows the provisions of Presidential Regulation No. 132/2024 on Plantation Fund Management. Through a letter issued by the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) dated August 29, 2026, the government maintained the CPO-to-biodiesel conversion component at US$85 per metric ton.
The September calculation used an average KPB CPO price of Rp15,746 per kilogram, based on the period from July 25 to August 24, 2026.
The formula also incorporated the US$85 per-ton conversion component and a density factor of 870 kilograms per cubic meter. The calculation used the Bank Indonesia average midpoint exchange rate for the same period, recorded at Rp17,924 per US dollar.
After the components were incorporated into the government’s pricing formula, the ESDM Ministry established the September biodiesel HIP at Rp15,025 per liter, before transportation costs.
The policy demonstrates the close connection between Indonesia’s palm oil industry and its domestic biodiesel program. Because CPO is used as a key feedstock, changes in palm oil prices are incorporated into the calculation of biodiesel pricing.
For the palm oil sector, the biodiesel mandate represents an important domestic channel for CPO utilization. The pricing mechanism, meanwhile, provides a reference for biodiesel procurement and blending into diesel fuel.
The EBTKE Directorate General also reiterated its commitment to the energy transition agenda and to maintaining integrity and public service standards in implementing renewable energy programs. (T2)
Source: InfoSAWIT
