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 March 2025 at IDR 13,929 per liter, plus transportation costs. This new price will take effect from March 1, 2025.
This determination is in accordance 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, stating that the conversion rate of Crude Palm Oil (CPO) to Biodiesel is set at USD 85/MT, and the Market Index Price for Biodiesel (HIP BBN) for March 2025 is IDR 13,929/liter plus transportation costs effective from March 1, 2025.
In an official statement quoted by InfoSAWIT on Tuesday (March 25, 2025), the HIP BBN for biodiesel is calculated based on the provisions of the first dictum of the Minister of ESDM Decree No. 3.K/EK.05/DJE/2024 regarding the Market Index Price of Biodiesel mixed into Diesel Fuel and the transportation costs based on the provisions of Annex I of the Minister of ESDM Decree No. 153.K/EK.05/DJE/2024.
The transportation cost refers to the maximum transportation cost of BBN Biodiesel mixed into fuel oil as stipulated in the Ministerial Decree regarding the Market Index Price of BBN Biodiesel mixed into fuel oil.
"The conversion value uses the average exchange rate reference from Bank Indonesia for the period of January 25, 2025, to February 24, 2025, which is IDR 16,321," noted the Ministry of ESDM regarding the Market Index Price of Biodiesel for March 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 mechanism for setting the biodiesel HIP price plays a crucial role in balancing biodiesel production costs and ensuring its competitiveness in the national fuel market. (T2)
