Palm Oil-Based Biodiesel and Bioethanol Prices Rise Uniformly, Effective May 2026

The Ministry of Energy and Mineral Resources (ESDM) has established the Market Index Price (HIP) for vegetable fuel (BBN) types biodiesel and bioethanol to rise uniformly in May 2026. For biodiesel, the price is set at Rp14,917 per litre, up from Rp14,262 per litre in the previous period of April 2026. “The Market Index Price (HIP) for vegetable fuel (BBN) for biodiesel and bioethanol in May 2026 has been officially released,” stated the Instagram account @djebtke, as quoted on Wednesday (13/5/2026). The biodiesel price calculation is based on: HIP = (average CPO KPB price + 85 US$/ton) x 870 kg/m³ + transportation costs. KPB refers to PT Kharisma Pemasaran Bersama Nusantara. The average CPO KPB price for the period 25 March 2026 to 24 April 2026 was Rp15,695/kg. The US85/MTrepresentstheconversionvalueofrawmaterialsintobiodiesel, with870kg/m³astheunitconversionfactorfromkgtolitres.Meanwhile, theexchangerateusestheaveragemid − ratefromBankIndonesiafortheperiod25Marchto24April2026, atRp17, 074.TransportationcostsareoutlinedintheMinisterofESDMDecreeNumber290.K/EK.05/MEM.E/2025ontheMarketIndexPriceforBiodieselVegetableFuelMixedintoFuelOil.Comparedtofossil − baseddieselfuel(BBM)Solarprices, thispalmoil − based(CPO)BBNbiodieselremainscheaper.InMay2026, thenon − subsidisedSolarBBMpricehasevensurpassedRp30, 000perlitre.Forexample, VIVO′sDieselPrimusproducthasrisentoRp30, 890perlitre.AtPertaminastations, PertaminaDEXisnowpricedatRp27, 900perlitre.Forbioethanol, theHIPforBBNtypebioethanolinMay2026isRp7, 992perlitre.Thispriceisobservedtohaveincreasedfromlastmonth′sRp7, 957perlitre.ThepricedeterminationusestheformulasetinMinisterofESDMDecreeNumber6034K/12/MEM/2016, namelyHIP = (averagesugarcanejuiceKPBpricefora3−monthperiodx4.125kg/litre) + 0.25US/litre. The average KPB sugarcane juice price for the period 15 October 2025 to 14 February 2026 was recorded at Rp907 per kilogram. The exchange rate reference uses the average mid-rate from Bank Indonesia for the period 15 March 2026 to 14 April 2026, at Rp17,008.