PALMOILMAGAZINE, JAKARTA – On January 18, 2024, the Director General of New Renewable Energy and Energy Conversion at the Ministry of Energy and Mineral Resources issued Ministerial Decision Number 3.K/EK.05/DJE/2024 regarding the Market Index Price (MIP) for Biodiesel Fuel blended with Diesel Fuel. This decision, effective from January 1, 2024, signifies a continuous effort to enhance the governance of biodiesel distribution in Indonesia.
This publication serves as a revision to Ministerial Decision Number 146.K/HK.02/DJE/2021, with a notable modification in the mechanism for determining the maximum biodiesel transportation cost. The revised approach involves deriving the maximum transportation cost from a self-prediction price formula, subject to an open test through a sounding market mechanism. This adjustment aims to ensure that the maximum transportation cost aligns with efficiency and transparency criteria.
The government’s objective in implementing these changes is to support the transportation and distribution of biodiesel, ultimately contributing to the advancement of renewable energy benefits, ensuring energy security, and reducing national greenhouse gas emissions.
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The decision also considered biodiesel MIP which was published by PT. Kharisma Pemasaran Bersama Nusantara for crude palm oil (CPO) in Belawan and Dumai, taken from the average one month – price prior.
The numbers of CPO conversion to be biodiesel was US$ 85 per metric ton and the conversion about 870 kg/m3. Besides, the transportation cost was added within maximal numbers when it had been handed over as regulated in Attachment I that became integral part of the decision.
On the spot – Floating Storage Balikpapan, MIP formula should get additional price that refers to numbers of reconciliation within maximal numbers according to the information in Attachment II (in the decision). (T2)
