PALMOILMAGAZINE, JAKARTA – Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has set the Market Index Price (HIP) for biodiesel under the Biofuel (BBN) category at IDR 13,980 per liter for March 2026, excluding transportation costs.
The price determination was announced through a letter issued by the Directorate General of New and Renewable Energy and Energy Conservation (EBTKE), numbered B-624/EK.05/DJE.B/2026 and dated February 27, 2026, regarding the Market Index Price for biodiesel for March 2026.
According to the letter, the pricing decision forms part of the implementation of Indonesia’s biodiesel mandatory program, as stipulated in Article 18 paragraph (3) of Presidential Regulation No. 132 of 2024 on Plantation Fund Management.
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The document explains that the biodiesel price is calculated using a formula based on the average price of crude palm oil (CPO) from the KPB auction, combined with a conversion factor and distribution costs.
“The Market Index Price for biodiesel is determined in accordance with the provisions stated in the First Dictum of the Minister of Energy and Mineral Resources Decree No. 3.K/EK.05/DJE/2024 concerning the Market Index Price of Biodiesel Biofuel,” the letter states, as cited by Palmoilmagazine.com on Saturday (7/3/2026).
The attachment to the document shows that the average CPO price from KPB auctions during the period of January 25 to February 24, 2026, reached IDR 14,639 per kilogram. The biodiesel HIP formula is calculated as: (Average CPO KPB price + USD 85/ton × 870 Kg/m³) plus transportation costs.
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Based on this formula, the government established the biodiesel HIP for March 2026 at IDR 13,980 per liter, with additional transport costs applied according to the designated distribution areas.
Meanwhile, the exchange rate used in the calculation refers to the average middle rate of Bank Indonesia from January 25 to February 24, 2026, which stood at IDR 16,819 per US dollar.
“The exchange rate conversion uses the average Bank Indonesia middle rate for the period January 25 to February 24, 2026,” the letter further explains.
The biodiesel HIP serves as the reference price for biodiesel distribution blended into diesel fuel as part of the national mandatory biodiesel program.
The policy remains a key component of the government’s strategy to accelerate renewable energy utilization while strengthening domestic palm oil absorption through the biodiesel program. (P2)
