InfoSAWIT, JAKARTA – The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of New, Renewable Energy, and Energy Conservation (EBTKE) has set the Market Index Price (HIP) for biodiesel in February 2025 at Rp 13,231 per liter, plus transportation costs. This new price will take effect from February 1, 2025.
This determination is in line with the implementation of the Mandatory Biodiesel Program referring to Article 18 paragraph (3) of Presidential Regulation No. 132 of 2024 concerning the Management of Plantation Funds. The conversion rate of Crude Palm Oil (CPO) to Biodiesel is set at 85 USD/MT, and the Market Index Price for Biodiesel (HIP BBN) in February 2025 is set at Rp 13,231/liter plus transportation costs, effective from February 1, 2025.
According to official information quoted by InfoSAWIT on Friday (February 7, 2025), the HIP BBN for biodiesel is calculated based on the provisions of the FIRST dictum of the ESDM Ministerial Decision No. 3.K/EK.05/DJE/2024 regarding the Market Index Price of Biodiesel mixed into Diesel Fuel, and the transportation costs are based on the provisions of Annex I of the ESDM Ministerial Decision No. 153.K/EK.05/DJE/2024.
The transportation costs are based on the maximum transportation costs for biodiesel mixed into fuel oil as stipulated in the Ministerial Decision regarding the Market Index Price of biodiesel mixed into fuel oil.
"The conversion of the exchange rate uses the average middle rate of Bank Indonesia for the period of December 25, 2024, to January 24, 2025, which is Rp 16,257," noted the ESDM Ministry regarding the Market Index Price of Biodiesel for February 2025.
This biodiesel HIP serves as an important reference for the domestic biodiesel sector, helping to stabilize cost structures amid fluctuations in raw material prices. This determination also reflects Indonesia's commitment to advancing the renewable energy agenda and supporting the palm oil-based biodiesel industry as a sustainable energy alternative. The pricing mechanism for biodiesel HIP plays a crucial role in balancing biodiesel production costs and ensuring its competitiveness in the national fuel market. (T2)
