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 in May 2025 at Rp13,742 per liter, plus applicable transportation costs. This marks a decrease of Rp548 compared to April’s price of Rp14,290 per liter.
This pricing decision aligns with the implementation of the Mandatory Biodiesel Program under Article 18 paragraph (3) of Presidential Regulation No. 132 of 2024 on the Management of Plantation Funds. According to the regulation, the conversion value of Crude Palm Oil (CPO) to biodiesel is set at USD 85 per metric ton, and the HIP for biodiesel in May 2025 is Rp13,742 per liter, excluding transport fees, effective as of May 1, 2025.
As reported by Palmoilmagazine.com on Wednesday, March 14, 2025, the HIP for biodiesel is calculated based on provisions stated in the FIRST dictum of the ESDM Ministerial Decree No. 3.K/EK.05/DJE/2024 regarding the Market Index Price of Biodiesel blended into diesel fuel. The transportation cost component is derived from the annex of ESDM Ministerial Decree No. 153.K/EK.05/DJE/2024.
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The transportation costs are based on the maximum allowable rates for transporting biodiesel blended into diesel fuel, as regulated in the same ministerial decree concerning HIP for biodiesel.
The Ministry also stated that the currency exchange rate used for calculation purposes is the average middle rate of Bank Indonesia from March 25 to April 24, 2025, which stood at Rp16,769 per US dollar.
This biodiesel HIP serves as a crucial benchmark for the domestic biodiesel industry, helping to stabilize production costs amid raw material price fluctuations. It also highlights Indonesia’s ongoing commitment to advancing renewable energy and promoting palm oil-based biodiesel as a sustainable alternative fuel. The HIP pricing mechanism plays a vital role in balancing production costs and maintaining biodiesel’s competitiveness in the national fuel market. (P2)
