PALMOILMAGAZINE, JAKARTA – The Indonesian government has officially set the Market Index Price (HIP BBN) for biodiesel at IDR 13,631 per liter for January 2026, excluding transportation costs. The price takes effect from 1 January 2026 and serves as a key reference under the implementation of the country’s national mandatory biodiesel program.
The decision was issued by the Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), as stated in Letter No. B-4124/EK.05/DJE/2025 concerning the biodiesel market index price for January 2026.
This policy follows up on the implementation of the Mandatory Biodiesel Program as stipulated in Presidential Regulation No. 132 of 2024 on Plantation Fund Management, particularly Article 18 paragraph (3).
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In the official document reviewed by Palmoilmagazine.com on Wednesday (7 January 2026), the government also set the conversion value of crude palm oil (CPO) to biodiesel at USD 85 per metric ton (USD/MT). This conversion figure is a key component in calculating the biodiesel market index price.
The January 2026 HIP BBN was determined based on the provisions of Minister of Energy and Mineral Resources Decree No. 3.K/EK.05/DJE/2024, which regulates the market index price of biodiesel blended into automotive diesel fuel. Meanwhile, the applicable transportation costs refer to Appendix I of Ministerial Decree No. 290.K/EK.05/MEM.E/2025.
The regulation emphasizes that transportation costs represent the maximum allowable distribution cost for biodiesel blended into diesel fuel. These costs vary by distribution region and are added on top of the government-set biodiesel HIP.
For currency conversion in the January 2026 HIP calculation, the government used the average Bank Indonesia middle exchange rate for the period 25 November–24 December 2025, which was set at IDR 16,684 per US dollar.
This price determination serves as a crucial benchmark for biodiesel producers, fuel distributors, and stakeholders across the palm oil sector. The HIP BBN functions as the basis for biodiesel payments under the national blending mandate and plays a strategic role in supporting Indonesia’s broader energy mix policy. (P2)
