Energy ministry lowers July biodiesel price, raises bioethanol benchmark
Thursday, July 2 2026 - 03:10 PM WIB
By Ranuh Rafiani Putri
The Ministry of Energy and Mineral Resources (MEMR) has slightly lowered the reference price for biodiesel for July 2026, while sharply increasing the benchmark price for bioethanol, according to separate pricing determinations issued by the ministry.
The Directorate General of New and Renewable Energy and Energy Conservation (EBTKE) set the Market Index Price (Harga Indeks Pasar/HIP) for biodiesel at Rp14,562 per litre, excluding transportation costs, effective July 1.
The July biodiesel price is down from Rp14,643 per litre in June, a decline of about 0.6%.
The biodiesel pricing formula continues to refer to Presidential Regulation No. 132/2024 on plantation fund management. The July HIP is based on the average crude palm oil (CPO) price published by PT Kharisma Pemasaran Bersama Nusantara (KPBN) between May 25 and June 24, 2026, which averaged Rp15,217 per kg. The calculation also incorporates a feedstock conversion value of US$85 per metric tonne and a conversion factor of 870 kg per cubic metre. Transportation costs will continue to be applied separately in accordance with Minister of Energy and Mineral Resources Decree No. 290.K/EK.05/MEM.E/2025.
Meanwhile, the ministry raised the HIP for bioethanol to Rp10,933 per litre for July from Rp8,062 per litre in June, an increase of about 35.6%.
The bioethanol price was calculated using the average molasses price published by KPBN between Dec. 15, 2025, and June 14, 2026, which stood at Rp1,568 per kg. The pricing formula also uses a conversion factor of 4.125 kg per litre and a feedstock conversion value of US$0.25 per pound, based on the average Bank Indonesia middle exchange rate of Rp17,853 per U.S. dollar during May 15-June 14, 2026.
The bioethanol pricing mechanism continues to refer to Minister of Energy and Mineral Resources Decree No. 6034 K/12/MEM/2016 on the market index price for biofuels blended into petroleum fuels.
Indonesia reviews biodiesel and bioethanol reference prices on a monthly basis to support its mandatory biofuel blending programme, promote renewable energy development and reduce dependence on fossil fuels.
Editing by Reiner Simanjuntak