PALMOILMAGAZINE, JAKARTA – The Indonesian 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 in March 2025 at IDR 13,929 per liter, plus transportation costs. The new price took effect on March 1, 2025.
This decision aligns with the implementation of the Mandatory Biodiesel Program, referring to Article 18, Paragraph (3) of Presidential Regulation No. 132 of 2024 on Plantation Fund Management. According to this regulation, the conversion rate of Crude Palm Oil (CPO) to biodiesel is set at USD 85 per metric ton (MT), while the HIP for biofuel-type biodiesel in March 2025 is IDR 13,929 per liter, plus applicable transportation costs.
As reported by Palmoilmagazine.com on Tuesday (March 25, 2025), the HIP for biofuel-type biodiesel is calculated based on the provisions of the FIRST dictum of the Minister of Energy and Mineral Resources’ Decree No. 3.K/EK.05/DJE/2024 regarding the Market Index Price for Biofuel-Type Biodiesel Blended with Diesel Fuel. The transportation cost component follows Appendix I of the Ministerial Decree No. 153.K/EK.05/DJE/2024.
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The maximum transportation cost for biofuel-type biodiesel blended with diesel fuel is determined based on the Ministerial Decree on the Market Index Price for Biofuel-Type Biodiesel.
“The exchange rate conversion uses the Bank Indonesia mid-rate average from January 25, 2025, to February 24, 2025, set at IDR 16,321,” noted the Ministry of Energy and Mineral Resources in its official announcement regarding the March 2025 biodiesel HIP.
This biodiesel HIP serves as a crucial benchmark for the domestic biodiesel sector, helping stabilize cost structures amid fluctuating raw material prices. The pricing also reflects Indonesia’s commitment to advancing renewable energy while supporting the palm oil-based biodiesel industry as a sustainable energy alternative. The pricing mechanism plays a key role in balancing production costs and ensuring biodiesel’s competitiveness in the national fuel market. (P2)
