PALMOILMAGAZINE, JAKARTA – The Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE), has set the Market Index Price (HIP) for biodiesel at IDR 13,929 per liter for March 2025, plus transportation costs. This new price will take effect on March 1, 2025.
This decision aligns with the implementation of the Mandatory Biodiesel Program, as stipulated in Article 18, Paragraph (3) of Presidential Regulation No. 132 of 2024 on Plantation Fund Management. The conversion rate of Crude Palm Oil (CPO) to biodiesel is set at USD 85 per metric ton (MT), and the HIP for biofuel (HIP BBN) biodiesel type in March 2025 is IDR 13,929 per liter, plus applicable transportation costs.
According to an official statement cited by Palmoilmagazine.com on Tuesday (March 25, 2025), the HIP for biodiesel is calculated based on the provisions in Article One of Ministerial Decree No. 3.K/EK.05/DJE/2024 on Market Index Price for Biofuel (Biodiesel Type) Blended with Diesel Fuel. Transportation costs are determined as per Annex I of Ministerial Decree No. 153.K/EK.05/DJE/2024.
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The transportation cost follows the maximum allowable rate for biofuel (biodiesel type) blended with diesel fuel, as stipulated in the Ministerial Decree on Market Index Price for Biofuel (Biodiesel Type).
“The exchange rate conversion is based on the average mid-rate of Bank Indonesia from January 25 to February 24, 2025, at IDR 16,321 per USD,” stated the Ministry of Energy and Mineral Resources regarding the March 2025 HIP for biofuel (biodiesel type).
The HIP for biodiesel serves as a crucial reference for the domestic biodiesel sector, helping to stabilize cost structures amid fluctuations in raw material prices. This pricing policy reflects Indonesia’s commitment to advancing renewable energy initiatives and supporting the palm oil-based biodiesel industry as a sustainable energy alternative. The HIP pricing mechanism plays a key role in balancing biodiesel production costs while ensuring its competitiveness in the national fuel market. (P2)
