Indonesia Sets October 2026 Biodiesel Market Index Price at IDR 15,072 per Liter

Official Price Determination

The Indonesian Ministry of Energy and Mineral Resources has officially announced the Market Index Price (HIP) for biodiesel applicable throughout October 2026. According to the latest regulatory update, the price has been set at IDR 15,072 per liter. This figure serves as the benchmark for the implementation of the mandatory biodiesel blending program, which is a cornerstone of Indonesia's energy policy.

Context of the Biodiesel Program

The Indonesian government utilizes the Market Index Price to ensure transparency and consistency in the biofuel sector. The calculation of this price typically considers several key factors, including:

• The average price of Crude Palm Oil (CPO) in the international market.
• Conversion costs associated with processing palm oil into biodiesel.
• Logistical and distribution expenses across the Indonesian archipelago.

By setting these monthly rates, the ministry aims to maintain the economic viability of the biodiesel industry while supporting the national target of reducing reliance on imported fossil fuels.

Impact on Energy Policy

The biodiesel mandate is a critical component of Indonesia's strategy to enhance energy security and promote sustainable energy sources. By integrating domestically produced biofuels into the national fuel supply, the government seeks to stabilize energy prices and support the local palm oil industry. The IDR 15,072 per liter rate will remain in effect for the duration of the month, providing clarity to fuel distributors and stakeholders involved in the supply chain.

Conclusion

As Indonesia continues to navigate global energy market fluctuations, the Ministry of Energy and Mineral Resources remains focused on adjusting the Market Index Price to reflect current economic conditions. This systematic approach is intended to ensure that the biodiesel program remains both sustainable and beneficial for the national economy.