PALMOILMAGAZINE, JAKARTA — Indonesia’s Ministry of Energy and Mineral Resources (ESDM), through the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), has officially set the Market Index Price (HIP) for biodiesel-type biofuel for May 2026 at IDR 14,917 per liter, excluding transportation costs. The new pricing took effect on May 1, 2026.
The decision was outlined in Directorate General of EBTKE Letter No. B-1279/EK.05/DJE.B/2026 dated April 27, 2026, addressed to the Director General of Budget as part of the implementation of Indonesia’s mandatory biodiesel program under Article 18 paragraph (3) of Presidential Regulation No. 132 of 2024 concerning Plantation Fund Management.
The official document stated that the conversion value of crude palm oil (CPO) into biodiesel was set at USD 85 per metric ton, serving as one of the main components in the biodiesel HIP calculation formula for May 2026.
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“The conversion value of Crude Palm Oil (CPO) into Biodiesel is set at USD 85/MT, while the Market Index Price (HIP BBN) for Biodiesel in May 2026 is determined at IDR 14,917/liter plus transportation costs,” stated Director General of EBTKE Eniya Listiyani Dewi in the regulation reviewed by Palmoilmagazine.com on Thursday (May 7, 2026).
Based on the official calculation appendix, the biodiesel HIP was determined using the average KPB CPO price of IDR 15,695 per kilogram for the period March 25 to April 24, 2026, along with the average Bank Indonesia middle exchange rate of IDR 17,074 per US dollar.
The pricing formula continues to follow the provisions stipulated under Indonesia’s national biodiesel pricing policy.
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The Ministry of Energy and Mineral Resources emphasized that the policy forms part of broader efforts to maintain the continuity of Indonesia’s domestic biofuel-based energy transition while supporting clean and accountable energy governance.
In the same statement, Eniya noted that the Directorate General of EBTKE remains committed to implementing the civil service core values of BerAKHLAK to deliver high-quality and integrity-based public services as part of Indonesia’s Integrity Zone development toward a Corruption-Free and Service-Oriented Bureaucracy.
The monthly determination of the Biodiesel HIP plays an important role in maintaining price certainty for Indonesia’s biofuel industry while also supporting domestic palm oil absorption, which remains the primary foundation of the country’s mandatory biodiesel program.
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With the new pricing structure taking effect from early May 2026, industry players are expected to adjust their supply and distribution planning in accordance with the latest government regulations. (P2)
