Indonesia has set the August 2026 Market Index Price (HIP) for biodiesel at IDR14,924 per liter, excluding transportation costs, as the government continues to strengthen the country’s mandatory biodiesel program.
PALMOILMAGAZINE, JAKARTA — Indonesia’s Energy and Mineral Resources Ministry (ESDM) has set the Market Index Price (HIP) for biodiesel at IDR14,924 per liter for August 2026, excluding applicable transportation costs.
The new price took effect on Aug. 1, 2026, and serves as a reference for the implementation of Indonesia’s national mandatory biodiesel program.
Also Read: Indonesia Sets July 2026 Biodiesel Market Index Price at IDR 14,562 per Liter
According to a July 30, 2026 letter issued by the ministry’s Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), the CPO-to-biodiesel conversion component remains unchanged at USD85 per metric ton.
The HIP calculation follows the provisions of Energy and Mineral Resources Ministerial Decree No. 3.K/EK.05/DJE/2024, while transportation costs are determined based on Ministerial Decree No. 290.K/EK.05/MEM.E/2025.
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CPO Prices Drive August HIP
The government’s calculation for the August biodiesel HIP used the average KPB crude palm oil (CPO) price of IDR15,626 per kilogram during the June 25–July 24, 2026 assessment period.
The CPO reference price was combined with the USD85-per-ton conversion component under the applicable formula before transportation costs were added based on the distribution region.
The calculation also used Bank Indonesia’s average mid-rate of IDR17,985 per U.S. dollar during the same period.
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Based on these components, the government set the August 2026 biodiesel HIP at IDR14,924 per liter, excluding transportation costs.
The biodiesel HIP is an important mechanism for providing pricing certainty to biodiesel producers while supporting the continued implementation of Indonesia’s mandatory biodiesel program.
The policy is also expected to strengthen domestic palm oil consumption as a feedstock for renewable energy, potentially increasing value-added in the national palm oil industry while supporting Indonesia’s broader energy-transition agenda.
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Through the latest directive, the EBTKE Directorate General reaffirmed its commitment to supporting Indonesia’s energy transition through integrity-driven governance and improved public services in the development and implementation of new and renewable energy programs. (P2)
