PALMOILMAGAZINE, JAKARTA – The Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE), has announced the Market Index Price (HIP) for biodiesel in December 2024 at IDR 14,389 per liter, excluding transportation costs. This new rate took effect on December 1, 2024.
According to official information released on Tuesday (3/12/2024), the HIP biodiesel formula is derived from the average Crude Palm Oil (CPO) price of the previous month, calculated as: Average CPO Price (KPB) + USD 85/ton × 870 kg/m³ + Transportation Costs.
The average KPB CPO price for the period of October 25 to November 24, 2024, was set at IDR 15,199/kg.
Also Read: Biodiesel MIP Set at IDR 12,633 per Liter for October 2024: A IDR 244 Increase
A conversion value of USD 85 per metric ton is used for processing raw materials into biodiesel, while 870 kg/m³ represents the density of biodiesel per liter. The exchange rate applied was the average Bank Indonesia middle rate for the same period, amounting to IDR 15,768. Transportation costs follow the provisions outlined in Ministerial Decree No. 3.K/EK.05/DJE/2024.
This biodiesel HIP serves as a critical benchmark for the domestic biodiesel sector, helping stabilize production costs amid fluctuating raw material prices. It underscores Indonesia’s commitment to advancing renewable energy initiatives and supporting palm oil-based biodiesel as a sustainable energy alternative.
The pricing mechanism also ensures balance in production costs, promoting the competitiveness of biodiesel within the national energy market. (P2)
