Official: Biodiesel Price Drops to Rp14,562/Litre, Effective July 2026

The Ministry of Energy and Mineral Resources (ESDM) has set the Market Index Price (HIP) for biofuel, specifically biodiesel, at Rp14,562 per litre for July 2026. This HIP for the July period is down from the June 2026 price of Rp14,643 per litre.

The formula used for the biodiesel HIP is: the average Crude Palm Oil (CPO) price from PT Kharisma Pemasaran Bersama Nusantara plus US$85 per metric tonne, multiplied by 870 kg/m3, plus transport costs. The average CPO price, calculated from the period of 25 May to 24 June 2026, was Rp15,217 per kilogramme. The US$85 per metric tonne figure represents the conversion value of raw material into biodiesel, with 870 kg/m3 serving as the unit conversion factor from kilogrammes to litres. The exchange rate used is the average Bank Indonesia middle rate for the period of 25 May to 24 June 2026, which was Rp17,895. Transport costs are stipulated in Minister of Energy and Mineral Resources Decree Number 290.K/EK.05/MEM.E/2025.

Director General of New, Renewable Energy and Energy Conservation (EBTKE) Eniya Listiani Dewi previously stated that the B50 mandate officially came into effect on 1 July 2026. However, the government has provided a transition or adjustment period of up to three months for business entities to use up their B40 stocks. This means full implementation of B50 will commence on 1 October 2026. Eniya explained that the transition period is necessary to allow B40 stocks at refineries and blending facilities to be depleted first. During this period, the specification of diesel fuel in circulation may still be above B40 before gradually reaching the B50 composition.