Energy ministry raises August biodiesel, bioethanol benchmark prices

By Ranuh Rafiani Putri

The Energy and Mineral Resources Ministry has raised the reference prices for both biodiesel and bioethanol for August, according to separate pricing determinations issued by the ministry, reflecting higher benchmark prices for the country's biofuel blending programme.

The Directorate General of New and Renewable Energy and Energy Conservation (EBTKE) set the Market Index Price (Harga Indeks Pasar/HIP) for biodiesel at Rp14,924 per litre, excluding transportation costs, effective Aug. 1.

The August biodiesel benchmark is up about 2.5% from Rp14,562 per litre in July.

The biodiesel pricing formula continues to refer to Presidential Regulation No. 132/2024 on plantation fund management. The benchmark incorporates a crude palm oil (CPO) feedstock conversion value of US$85 per metric ton, unchanged from the previous month, while transportation costs will continue to be applied separately in accordance with Energy Ministry Decree No. 290.K/EK.05/MEM.E/2025.

Meanwhile, the ministry raised the HIP for bioethanol to Rp11,695 per litre for August from Rp10,933 per litre in July, an increase of about 7.0%.

The bioethanol pricing mechanism continues to refer to Energy Ministry 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 every month to support its mandatory biofuel blending programme, promote renewable energy development and reduce dependence on fossil fuels.

The world's largest palm oil producer currently implements a mandatory B50 programme, requiring diesel fuel to contain 50% palm oil-based biodiesel, while the government is preparing an incentive mechanism to support the planned rollout of E10 gasoline, which will contain 10% fuel ethanol, to improve energy security and reduce fuel imports.

Editing by Reiner Simanjuntak