InfoSAWIT, JAKARTA – On 18 January 2024, General Director of New Renewable Energy and Energy Conversion Ministry of Energy and Mineral Resource published the Decision of Minister of Energy and Mineral Resource Number 3.K/EK.05/DJE/2024 about Market Index Price (MIP) for Biodiesel Fuel which is Mixed to Diesel Fuel. It would be available since on 1 January 2024 and would be always improved about biodiesel distribution governance in Indonesia.

It is the revision of the Decision of Minister of Energy and Mineral Resource Number 146.K/HK.02/DJE/2021. In the revision, the significant change is about the mechanism to determine maximal numbers of biodiesel transportation cost.

The maximal transportation cost was from the formula of self - prediction price which then would be openly tested through sounding market mechanism. This is about to confirm that maximal transportation cost would qualify efficiency and transparency aspects.

The government would do this as the way to support biodiesel transportation and distribution which the goal is about to escalate renewable energy advantages, energy security, and reduce green-house gas emission nationally.

The decision also considered biodiesel MIP which was published by PT. Kharisma Pemasaran Bersama Nusantara for crude palm oil (CPO) in Belawan and Dumai, taken from the average one month – price prior.

The numbers of CPO conversion to be biodiesel was US$ 85 per metric ton and the conversion about 870 kg/m3. Besides, the transportation cost was added within maximal numbers when it had been handed over as regulated in Attachment I that became integral part of the decision.

On the spot - Floating Storage Balikpapan, MIP formula should get additional price that refers to numbers of reconciliation within maximal numbers according to the information in Attachment II (in the decision). (T2)