Indonesia Biodiesel Weekly: B50 at Every Pump, HIP at IDR 15,072, CPO Softens (3–9 October 2026)

Jakarta — Indonesia's biodiesel week in brief, 3–9 October 2026: B50 completed its first week at every fuel station, the biodiesel market index price (HIP) edged higher, crude palm oil (CPO) prices softened ahead of Malaysian supply data, and the debate over palm oil feedstock for higher blends intensified.

Policy and the mandate

• B50 at all fuel stations. After a three-month transition, the government says B50 has been sold at all fuel stations since 1 October 2026. The mandate itself took effect on 1 July 2026 under ESDM Ministerial Decree (Kepmen) No. 257.K/EK.01/MEM.E/2026, while the energy minister describes 2026 as a transition year with full implementation from January 2027. A B60 study for 2027 is under way. Read more
• Feedstock from degraded land. Presidential envoy Hashim Djojohadikusumo said feedstock for B50 up to B100 should come from around 12.7 million hectares of degraded forest and land rather than primary forest. Figures and definitions still differ between sources, and civil society groups warn of deforestation risks. Report (in Indonesian)
• A flexible mandate? The Indonesian Palm Oil Association (GAPKI) proposed linking the palm oil allocation for biodiesel to palm and crude oil prices. Palm oil used for biodiesel reached 1.285 million tonnes in July 2026, up 13.59%. Report (in Indonesian)
• Rail decarbonisation. State railway KAI counts B50 as the source of 80% of its emissions-reduction target, rolling it out on locomotives and generator cars since 1 July 2026. Report (in Indonesian)

Prices and markets

• Biodiesel HIP: IDR 15,072 per litre for October, up IDR 47 from September, excluding transport costs. Read more · Full HIP history
• CPO reference price: US$1,042.15/tonne for October, up 3.44%, with an export duty of US$178/tonne and an export levy of 12.5% (US$130.27/tonne) — the main source of BPDP biodiesel incentives. Report (in Indonesian)
• Futures softer before MPOB data. The October CPO contract on Bursa Malaysia fell to RM4,310/tonne on weaker crude oil, slower exports and rising stocks, though analysts still expect prices above RM4,000/tonne to the end of 2026. Report (in Indonesian)
• 2027 supply outlook. USDA projects global palm oil output for 2026/27 at 81.12 million tonnes, down from 81.44 million; El Niño effects typically show up 9–12 months later, while B50 is expected to need 16.3–17 million tonnes of CPO a year. Report (in Indonesian)
• Farmgate prices. Smallholder fresh fruit bunch (FFB) prices in Riau fell 3.45% to IDR 3,733.74/kg for 7–13 October, following the dip in CPO and kernel prices. Report (in Indonesian)
• Pump prices. Pertamina kept non-subsidised diesel unchanged in October (Dexlite IDR 23,700, Pertamina Dex IDR 25,200 per litre); subsidised Biosolar B50 stays at IDR 6,800. Report (in Indonesian)

Regional and trade

• India. Malaysian palm oil exports to India rose 40.4% in January–August 2026, while B50 absorbs more of Indonesia's own supply. Report (in Indonesian)
• Malaysia's B15. Malaysia is relying on B15 for energy security; it needs about 0.8 million tonnes of CPO a year, far below Indonesia's B50 requirement. Report (in Indonesian)
• Energy diplomacy. Indonesia is widening oil and LPG supply through the US and Russia; B50 complements efforts to cut diesel imports of roughly 3–4 million kL a year. Report (in Indonesian)

Coming up

• MPOB September supply and demand data — mid-October.
• IPOC 2026, Nusa Dua, Bali — 11–13 November 2026; World Biofuels Conference, Barcelona — 3–5 November 2026. All events