Indonesia's Biodiesel HIP Rises to IDR 15,072 per Litre for October 2026

Jakarta — The Ministry of Energy and Mineral Resources (ESDM) has set the biodiesel market index price (HIP) for October 2026 at IDR 15,072 per litre, excluding transport costs. That is up a slight IDR 47 per litre from September 2026's IDR 15,025 per litre, and has been effective since 1 October 2026.

The price was announced by the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) at ESDM on its official website, as reported by CNBC Indonesia and Akurat on Monday, 5 October 2026. The increase continues an upward trend over recent months: the biodiesel HIP was IDR 14,562 per litre in July and IDR 14,924 per litre in August 2026.

How is the HIP calculated?

The biodiesel HIP is the benchmark price for FAME blended into diesel. The formula tracks domestic crude palm oil (CPO) prices:

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

• Average KPB CPO price — the CPO price at PT Kharisma Pemasaran Bersama Nusantara during the reference period. According to Akurat, the average KPB CPO price for 25 August–24 September 2026 was IDR 15,820 per kilogram.
• US$85/tonne — the cost factor for converting CPO into biodiesel.
• 870 kg/m³ — the mass-to-volume conversion factor (density).
• Transport cost — added separately under ESDM Ministerial Decree (Kepmen) No. 290.K/EK.05/MEM.E/2025.

The HIP is set with reference to Presidential Regulation No. 132 of 2024 on Plantation Fund Management and ESDM Ministerial Decree (Kepmen) No. 3.K/EK.05/DJE/2024. In the same month, the bioethanol HIP fell to IDR 11,604 per litre from IDR 11,814 per litre in September.

Why does the HIP matter?

The biodiesel HIP is the basis for FAME transactions between biodiesel producers and fuel distributors (BU BBM). For the subsidised (PSO) sector, the gap between the biodiesel HIP and the diesel price is covered by incentives from the Plantation Fund Management Agency (BPDP, formerly BPDPKS), funded by palm oil export levies. In other words, the higher the biodiesel HIP relative to the diesel price, the larger the incentive BPDP must bear.

At consumer level, the price of subsidised Biosolar (subsidised B50 diesel) remains fixed by the government at IDR 6,800 per litre. For non-PSO users such as industry and mining, who buy without incentives, a higher HIP can feed directly into fuel costs. B50 has been mandatory since 1 July 2026 (ESDM Ministerial Decree (Kepmen) No. 257.K/EK.01/MEM.E/2026) and, after a three-month transition, the government says all fuel stations have supplied it since 1 October 2026. With FAME making up half of every litre of diesel, HIP movements are felt more strongly. See also: Benefits and challenges of Indonesia's biodiesel programme.