Indonesia’s government sets the November 2026 biodiesel Market Index Price at IDR 14,312 per liter, based on an average KPB CPO price of IDR 14,926/kg, with transportation costs calculated separately.
PALMOILMAGAZINE, JAKARTA – Indonesia’s government has set the Market Index Price (HIP) for biodiesel at IDR 14,312 per liter for November 2026, excluding transportation costs. The new rate took effect on November 1, 2026, as part of the country’s mandatory biodiesel blending programme.
The decision was stipulated in a letter issued by the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources (ESDM), No. B-3659/EK.05/DJE.B/2026, dated October 26, 2026. The letter was signed by EBTKE Director General Eniya Listiani Dewi.
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According to the letter, the November 2026 biodiesel HIP was calculated in accordance with Minister of Energy and Mineral Resources Decree No. 3.K/EK.05/DJE/2024, which governs the market index price for biodiesel blended into conventional diesel fuel. Meanwhile, transportation costs are calculated based on Minister of Energy and Mineral Resources Decree No. 290.K/EK.05/MEM.E/2025.
The calculation attached to the letter shows that the average crude palm oil (CPO) price at the Joint Marketing Office (KPB) during the September 25–October 24, 2026 assessment period stood at IDR 14,926 per kilogram.
Under the applicable formula, the biodiesel HIP is calculated using the average KPB CPO price plus a conversion component of US$85 per metric ton. The resulting figure is multiplied by a conversion factor of 870 kilograms per cubic meter, with transportation costs calculated separately.
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For the exchange rate component, the government used Bank Indonesia’s average middle exchange rate of IDR 17,942 per US dollar during the same September 25–October 24, 2026 period. Transportation costs are based on the maximum rates stipulated under ESDM regulations.
Consequently, the November biodiesel HIP of IDR 14,312 per liter represents the base price before transportation costs are added. The final transaction price will therefore depend on the applicable transportation charges in accordance with prevailing regulations.
The monthly determination of the biodiesel HIP is an important instrument in implementing Indonesia’s mandatory biodiesel programme. The pricing mechanism also has direct implications for the domestic palm oil industry, as crude palm oil remains the primary feedstock for Indonesia’s palm-based biodiesel production. (P2)
