PALMOILMAGAZINE, JAKARTA – Indonesia’s Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE), has set the Reference Price Index (HIP) for biodiesel in October 2025 at IDR 13,921 per liter, plus transportation costs. The price represents a slight decrease of IDR 27 per liter compared to September’s HIP of IDR 13,948 per liter.
This adjustment aligns with Article 18 paragraph (3) of Presidential Regulation No. 132 of 2024 concerning Plantation Fund Management, which stipulates that the conversion value of Crude Palm Oil (CPO) to biodiesel is US$ 85 per metric ton (MT). The newly set HIP for biofuel (BBN) biodiesel is effective as of October 1, 2025.
According to official information cited by Palmoilmagazine.com on Tuesday (October 7, 2025), the HIP calculation follows the provisions of Ministerial Decree No. 3.K/EK.05/DJE/2024 on the Market Price Index for Biofuel (Biodiesel) Blended into Diesel Fuel, while the transportation cost (freight rate) refers to Annex I of Ministerial Decree No. 290.K/EK.05/MEM.E/2025.
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The Ministry noted that the freight rate reflects the maximum allowable cost for transporting biodiesel to be blended into fossil diesel fuel, as regulated in the respective ministerial decrees.
“The currency conversion value uses the average mid-exchange rate from Bank Indonesia for the period of August 25 to September 24, 2025, which stood at IDR 16,430 per US dollar,” the Ministry stated regarding the biodiesel HIP for October 2025.
The biodiesel HIP serves as a key benchmark for the domestic biodiesel sector, helping stabilize production costs amid fluctuating CPO prices. It also underscores Indonesia’s ongoing commitment to renewable energy development, supporting the palm oil–based biodiesel industry as a sustainable and strategic energy alternative.
By maintaining a transparent pricing mechanism, the government aims to balance production costs and enhance the competitiveness of biodiesel in the national energy market. (P2)
