PALMOILMAGAZINE, JAKARTA – The Indonesian government has set the Market Index Price (HIP) for biodiesel at IDR 14,643 per liter, excluding transportation costs, for the June 2026 period. The new pricing took effect on June 1, 2026, as part of the country’s ongoing mandatory biodiesel program.
The price was established by the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) under the Ministry of Energy and Mineral Resources (ESDM), in accordance with Presidential Regulation No. 132 of 2024 on Plantation Fund Management.
In an official letter signed by EBTKE Director General Eniya Listiani Dewi, the government maintained the conversion value of crude palm oil (CPO) into biodiesel at US$85 per metric ton. This conversion factor remains a key component in calculating Indonesia’s monthly biodiesel pricing formula.
Also Read: Indonesia Sets June CPO Reference Price at USD 1,029.51/MT Amid Softer Global Demand
According to information released by EBTKE on Friday (June 5, 2026), the June biodiesel HIP was calculated using the average CPO price recorded between April 25 and May 24, 2026, combined with the established conversion factor and applicable transportation cost components.
Based on the calculation appendix published by EBTKE, the average CPO price at the KPB market during the reference period reached IDR 15,348 per kilogram. This figure served as the primary benchmark in determining the June biodiesel price index.
The calculation also incorporated the average Bank Indonesia middle exchange rate during the same period, which stood at IDR 17,444 per US dollar. Exchange rate movements play a significant role in determining the final biodiesel price, given the use of a dollar-denominated conversion factor.
Also Read: KPBN CPO Prices Rose to IDR15,075/kg on Thursday (June 4), While the Malaysia Exchange Closed Lower
The biodiesel HIP mechanism remains an important instrument for ensuring the sustainability of Indonesia’s biodiesel mandate, one of the country’s flagship renewable energy initiatives. The program has become a major driver of domestic palm oil consumption while helping reduce dependence on imported fossil fuels.
By supporting higher domestic absorption of palm oil production, the biodiesel mandate also contributes to market stability for Indonesia’s palm oil industry. The policy has strengthened demand for CPO, creating additional value across the upstream and downstream sectors.
With the June 2026 biodiesel HIP set at IDR 14,643 per liter, excluding transportation costs, biofuel producers are expected to maintain adequate supplies to meet the expanding biodiesel blending requirements mandated by the government. The latest adjustment underscores the continued strategic role of palm oil-based biofuels in Indonesia’s energy security and renewable energy transition efforts. (P2)
