PALMOILMAGAZINE, JAKARTA The Third Regulation of Decision of the Minister of Energy and Mineral Resources (EMR) Number 146.K/HK.02/DJE/2021 concerning the Market Index Price (MIP) of biodiesel, specifically the kind mixed into fuel, has been replaced by Decision of the Minister of EMR Number 21.K/HK.02/DJE/2023.
As per the updated regulation, the conversion rate for crude palm oil to biodiesel is set at US$85 per metric ton (MT), and the MIP for vegetable oil-based biodiesel in January 2024 is established at Rp 10,896 per liter. Additionally, transportation costs, effective January 1, 2024, are factored into these figures.
According to Attachment Number T-5593/EK.05/DJE.B/2023 dated December 29, 2023, the transportation cost is defined as the maximum expense associated with transporting biodiesel mixed into fuel, aligning with the ministerial decision on the MIP of biodiesel blended into fuel.
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“The conversion of currency would apply the average medium currency of the Indonesian Bank from November 25, 2023, to December 24, 2023, which was Rp 15.519,” the regulation noted as Palmoilmagazine.com quoted from the official page of the General Directorate of New Renewable Energy and Energy Conversion.
It means, just like what Palmoilmagazine.com calculated, palm oil biodiesel MIP in January 2024 is getting cheaper at Rp 78/liter compared to Rp 10.974/liter in December 2023. (T2)
