PALMOILMAGAZINE, JAKARTA — The Ministry of Energy and Mineral Resources (MEMR), through its Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), has announced the Market Index Price (HIP) for biodiesel for July 2025 at IDR 12,874 per liter, excluding transport costs. This reflects a slight decrease of IDR 16 from June’s HIP of IDR 12,890 per liter.
The pricing 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. Under this framework, the conversion value for crude palm oil (CPO) into biodiesel is set at USD 85 per metric ton, and the biodiesel HIP for July 2025 is IDR 12,874 per liter plus applicable transportation costs, effective July 1, 2025.
According to an official release quoted by Palmoilmagazine.com on Sunday (July 6, 2025), the HIP for biodiesel was calculated based on the provisions of Decree No. 3.K/EK.05/DJE/2024 issued by the Minister of Energy and Mineral Resources. This decree regulates the Market Index Price for biodiesel blended into diesel fuel, while transport cost guidelines are outlined in Annex I of Decree No. 153.K/EK.05/DJE/2024.
Also Read:Biodiesel Price Set at Rp13,742/Liter for May 2025, Down Rp548 from April
The transportation cost component refers to the maximum allowable biodiesel transport charges for blending into fossil diesel fuel, as stipulated in the ministerial decree on biodiesel HIP.
The currency conversion rate used in the pricing calculation is based on the average middle exchange rate from Bank Indonesia during the period of May 25 to June 24, 2025, which was IDR 16,303 per USD.
The biodiesel HIP serves as a key reference for the domestic biodiesel sector, helping to stabilize production costs amid fluctuating raw material prices. This pricing policy also reflects Indonesia’s ongoing commitment to renewable energy development and the promotion of palm oil–based biodiesel as a sustainable energy alternative.
The HIP mechanism plays a crucial role in balancing production costs and ensuring the competitiveness of biodiesel within the national fuel market. (P2)
