Minister issues decree on biofuel market price index

Minister of Energy and Mineral Resources Sudirman Said had on June 30 issued a new Decree No 3239 K/12/MEM/2015 on biofuel market price index.

The ministry said in a statement Sunday that the new decree places previous Decree No 0726K/12/MEM/2015.

The key points of the new decree are as follows.
1. The market price index (HIP) of biofuel mixed into certain types of fuel products is based on the average price of the Belawan (North Sumatra) and Dumai (Riau) CPO spot price of the previous month published by Kharisma Pemasaran Bersama Nusantara, excluding value added tax plus the conversion price of CPO into biodiesel of US$125 per metric ton with a conversion factor 870 kg/m3, plus maximum transportation cost to respective delivery points.
2. The HIP for bioethanol mixed into specially assigned fuel products is based on the previous month average of Argus-published price of ethanol FOB Thailand plus 14 percent domestic balancing production index with conversion factor of 788 kg/m3.
3. The HIP is determined every month, and evaluated every six months by the Directorate General of New and Renewable Energy.

Editing by Reiner Simanjuntak