The Ministry of Energy and Mineral Resources (ESDM) has set the Market Index Price (HIP) of biodiesel in April 2025 at IDR 14,290 per litre. In comparison, the HIP stood at IDR 13,929 per litre in March 2025. This represents an increase in the HIP from March to April. The calculation of the HIP is based on the provisions of the FIRST Dictum of the Minister of Energy and Mineral Resources Decree No. 3.K/EK.05/DJE/2024 concerning the Market Index Price of Biodiesel Fuel Mixed into Solar Fuel Oil, and the amount of Transport Costs based on the provisions of Appendix I of the Minister of Energy and Mineral Resources Decree Number 153.K/EK.05/DJE/2024.
The price of Biodiesel Fuel is set at IDR 14,290 per litre in the context of implementing the Mandatory Biodiesel Program, as outlined in Article 18, paragraph (3) of Presidential Regulation Number 132 of 2024 concerning Plantation Fund Management. The amount of conversion of Crude Palm Oil (CPO) into Biodiesel is USD 85/MT, and the amount of the Market Index Price of Biofuel (HIP BBN) Type of Biodiesel in April 2025 is IDR 14,290/litre plus transportation costs, which is effective on 1 April 2025. The transportation costs referred to are the maximum permitted amount for blending biodiesel into fuel oil. This is stipulated in the Ministerial Decree regarding the Market Index Price for biodiesel blended into fuel oil. The calculation of the Biodiesel HIP price is obtained from the HIP formula: HIP price = Average CPO KPB + USD 85 /ton) x 870 Kg/m3 + transportation costs.
