InfoSAWIT, JAKARTA – The Indonesian Ministry of Energy and Mineral Resources (ESDM), through its Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE), has announced the Market Index Price (HIP) for biodiesel for December 2024. The price is set at IDR 14,389 per liter, excluding transport costs, and is effective starting December 1, 2024.
According to official information received by InfoSAWIT, the HIP biodiesel formula is derived from the average price of Crude Palm Oil (CPO) in the preceding month. The calculation follows this formula:
HIP Biodiesel = (Average CPO Price + $85/ton) x 870 kg/m³ + Transport Costs.
For the period October 25 – November 24, 2024, the average CPO price was set at IDR 15,199/kg.
- $85 per metric ton represents the conversion cost of raw materials into biodiesel.
- 870 kg/m³ is the density factor for biodiesel in liter units.
- The exchange rate used for the calculation was the Bank Indonesia average middle rate for the same period, set at IDR 15,768/USD.
Transport costs follow the provisions of Minister of Energy and Mineral Resources Decree No. 3.K/EK.05/DJE/2024.
The HIP biodiesel serves as a critical benchmark for the domestic biodiesel sector, helping stabilize production costs amid fluctuating raw material prices. It also underscores Indonesia’s commitment to advancing renewable energy initiatives and promoting palm oil-based biodiesel as a sustainable energy alternative.
The pricing mechanism plays a vital role in ensuring biodiesel production remains competitive while fostering its adoption in the national energy market. (T2)
