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 biofuel of the biodiesel type for November 2025 at IDR 14,036 per liter, excluding transportation costs. The decision is stipulated in the official letter from the Director General of EBTKE No. B-3153/EK.05/DJE.B/2025, dated October 16, 2025.
This price determination is part of the Mandatory Biodiesel Program implementation, as outlined in Article 18 paragraph (3) of Presidential Regulation No. 132/2024 concerning the Management of Plantation Funds. The letter also specifies that the conversion rate of Crude Palm Oil (CPO) to biodiesel is set at USD 85 per metric ton (USD/MT). The new rate becomes effective on November 1, 2025.
The calculation of the HIP biodiesel for November 2025 refers to the FIRST Dictum of Ministerial Decree No. 3.K/EK.05/DJE/2024, which establishes the formula for determining the biodiesel blending price in diesel fuel. Meanwhile, transportation costs follow the provisions outlined in Ministerial Decree No. 290.K/EK.05/MEM.E/2025, which regulates the maximum freight rates for biodiesel biofuels.
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According to the same document, the transportation rate refers to the maximum freight cost for biodiesel blended into diesel fuel, as detailed in the ministerial decree on the biodiesel market index price.
“For the conversion value and final price calculation, the government used the average middle exchange rate from Bank Indonesia between September 25 and October 24, 2025, at IDR 16,623 per US dollar,” the regulation states, as quoted by Palmoilmagazine.com, Monday (November 10, 2025).
This price serves as the main reference for biofuel companies in distributing biodiesel throughout November 2025, ensuring the continuity of the B35 Mandatory Program, which plays a crucial role in Indonesia’s energy transition efforts based on domestic resources, particularly palm oil.
With the established formula and ongoing monitoring of global CPO prices, the government aims to ensure that the HIP mechanism maintains price and supply stability in the renewable energy sector while providing certainty for Indonesia’s biodiesel industry players. (P2)
