July 2026 Biodiesel HIP Dips IDR 81 to IDR 14,562 per Litre as Bioethanol Jumps 35.6%

Jakarta — The Ministry of Energy and Mineral Resources (ESDM) has set the biodiesel market index price (HIP) for July 2026 at IDR 14,562 per litre, excluding transport costs. The price, effective from 1 July 2026, is IDR 81 per litre, or about 0.6%, lower than the June 2026 HIP of IDR 14,643. The bioethanol HIP, by contrast, jumped about 35.6% to IDR 10,933 per litre.

The Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) set the biodiesel HIP in letter No. B-1924/EK.05/DJE.B/2026 dated 29 June 2026, addressed to the Director General of Budget at the Finance Ministry, according to InfoSAWIT. EBTKE also announced the figure on its official Instagram account, Listrik Indonesia reported.

Formula and inputs

The biodiesel HIP is calculated under ESDM Ministerial Decree No. 3.K/EK.05/DJE/2024 using the formula:

HIP = (average KPB CPO price + US$85/tonne) × 870 kg/m³ + transport costs

• Average KPB CPO price: IDR 15,217 per kg for 25 May–24 June 2026, based on data from PT Kharisma Pemasaran Bersama Nusantara (KPBN).
• Exchange rate: Bank Indonesia's average middle rate of IDR 17,895 per US dollar over the same period.
• Conversion value: US$85 per tonne, unchanged from the previous period.
• Conversion factor: 870 kg/m³ to convert kilograms into litres.
• Transport costs: added by distribution region under ESDM Ministerial Decree No. 290.K/EK.05/MEM.E/2025.

At that exchange rate, the US$85 conversion component is worth roughly IDR 1,521 per kg. Adding it to the CPO price and multiplying by 0.87 gives about IDR 14,562 per litre, matching the published figure. The size of the currency component shows that the rupiah exchange rate, alongside domestic CPO prices, helps determine the cost of biofuel.

The first month of B50

The July HIP applies in the month the B50 biodiesel mandate — a blend of 50% palm-based biodiesel and 50% diesel — was scheduled to launch on 1 July 2026, according to a Reuters report carried by Hydrocarbon Processing. InfoSAWIT noted that the mandatory biodiesel programme for this period took effect on 1 July 2026.

The slight dip in the HIP came as global palm oil markets were firming ahead of B50. On 29 June 2026, September-delivery CPO futures on Bursa Malaysia Derivatives closed up 21 ringgit, or 0.46%, at 4,589 ringgit per tonne, a second straight session of gains, the same report said. Futures moves feed into the HIP only in later months, since the index uses average prices from the preceding period.

Bioethanol HIP jumps 35.6%

Petromindo reported that the July 2026 bioethanol HIP was set at IDR 10,933 per litre, up from IDR 8,062 in June. The calculation uses an average KPBN molasses price of IDR 1,568 per kg for 15 December 2025–14 June 2026 with a conversion factor of 4.125 kg per litre, and Bank Indonesia's average middle rate of IDR 17,853 per dollar for 15 May–14 June 2026.

Biofuel	June 2026 HIP (IDR/litre)	July 2026 HIP (IDR/litre)	Change
Biodiesel (excl. transport)	14,643	14,562	−81 (−0.6%)
Bioethanol	8,062	10,933	+2,871 (+35.6%)

Petromindo said the bioethanol HIP is calculated under ESDM Ministerial Decree No. 6034 K/12/MEM/2016, while fund management for biodiesel follows Presidential Regulation No. 132 of 2024 on plantation fund management. Both benchmarks are reviewed monthly to support the mandatory biofuel programme.

Monthly HIP history is available on our biodiesel HIP data page.