PALMOILMAGAZINE, JAKARTA — The Ministry of Energy and Mineral Resources (ESDM), through its Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), has announced the Market Index Price (HIP) for biodiesel in August 2025 at Rp13,527 per liter, excluding transportation costs. This marks an increase of Rp635 per liter compared to the July price of Rp12,874 per liter.
This adjustment aligns with the implementation of the mandatory biodiesel program, in accordance with Article 18, paragraph (3) of Presidential Regulation No. 132 of 2024 on the Management of Plantation Funds. The regulation sets the CPO-to-biodiesel conversion rate at USD 85/metric ton, while the HIP for biodiesel in August 2025 is officially effective from August 1, 2025.
As reported by Palmoilmagazine.com on Wednesday, August 6, 2025, the HIP for biodiesel is calculated based on the First Dictum of Ministerial Decree No. 3.K/EK.05/DJE/2024 concerning the Market Index Price for Biodiesel Blended with Diesel Fuel. Transportation costs are determined according to Annex I of Ministerial Decree No. 153.K/EK.05/DJE/2024, which outlines the maximum allowable transport charges for blending biodiesel with fossil diesel.
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The Ministry of ESDM also noted that the exchange rate used for the conversion is the average middle rate from Bank Indonesia between June 25 and July 24, 2025, which was Rp16,263/USD.
The HIP serves as a crucial pricing benchmark for Indonesia’s biodiesel sector, helping stabilize production costs amid fluctuating raw material prices. It also reflects Indonesia’s ongoing commitment to advancing renewable energy and supporting palm oil-based biodiesel as a sustainable alternative energy source. The HIP mechanism ensures a balance between biodiesel production costs and its competitiveness within the national fuel market. (P2)
