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 September 2025 at Rp 13,948 per liter, including transportation costs, marking an increase of Rp 421 from August’s Rp 13,527 per liter.
This adjustment aligns with the Mandatory Biodiesel Program, as stipulated in Article 18, Paragraph (3) of Presidential Regulation No. 132 of 2024 on Plantation Fund Management. Under this regulation, the conversion rate for Crude Palm Oil (CPO) to biodiesel is set at 85 USD/MT, with the HIP for biodiesel effective September 1, 2025, including applicable transportation costs.
According to official information cited by Palmoilmagazine.com on Wednesday (3/9/2025), the HIP is calculated based on Ministerial Decree No. 3.K/EK.05/DJE/2024, which outlines the Market Index Price for biodiesel blended into diesel fuel. Transportation costs refer to Appendix I of Ministerial Decree No. 290.K/EK.05/MEM.E/2025, reflecting the maximum allowed logistics costs for biodiesel blended into fuel.
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The Ministry also noted that currency conversion uses the average Bank Indonesia exchange rate from July 25 to August 24, 2025, at Rp 16,316/USD.
The HIP biodiesel serves as a critical benchmark for the domestic biodiesel sector, helping stabilize production costs amid raw material price fluctuations. The price setting underscores Indonesia’s commitment to advancing renewable energy, while supporting the palm oil-based biodiesel industry as a sustainable energy alternative. By balancing production costs and ensuring competitiveness, the HIP mechanism plays a vital role in the national fuel market. (P2)
