Indonesia's May 2025 Biodiesel HIP Falls to IDR 13,742 per Litre

Jakarta — Indonesia's biodiesel market index price (HIP) for May 2025 has been set at IDR 13,742 per litre plus transport costs, down IDR 548 per litre from April. Eniya Listiani Dewi, the energy ministry's director-general of New, Renewable Energy and Energy Conservation (EBTKE), confirmed the figure to ANTARA on Friday, 9 May 2025. An earlier official notice said it took effect on 1 May. The HIP is a biodiesel pricing reference for the blending programme, not the retail price of subsidised biodiesel-blended diesel (Biosolar) at fuel stations.

May's reference price versus April's

EBTKE set April's biodiesel HIP at IDR 14,290 per litre plus transport costs. The May figure of IDR 13,742 is IDR 548 per litre lower. Both figures appear in the respective official monthly notices, and ANTARA reported the comparison on 9 May. One monthly move cannot, on its own, establish the course of crude palm oil (CPO) prices or biodiesel production costs for the rest of the year.

EBTKE said the May figure was set for the mandatory biodiesel programme under Presidential Regulation No. 132 of 2024 on plantation-fund management. The announcement specified a CPO-to-biodiesel conversion amount of US$85 per metric tonne. The HIP calculation follows ESDM Ministerial Decree No. 3.K/EK.05/DJE/2024, while transport charges are subject to a separate decree.

The explicit qualification "plus transport costs" matters: IDR 13,742 is not an all-in delivered price for every location. Nor is it a daily CPO tender price or the retail diesel price. A lower biodiesel HIP therefore does not automatically mean that fuel-station prices have fallen by the same amount.

Exchange rates and B40 distribution

According to ANTARA, Eniya said the exchange-rate conversion used Bank Indonesia's average middle rate of IDR 16,769 for the period from 25 March to 24 April 2025. That was a parameter she identified, but the reports examined here do not support attributing the entire change in HIP solely to the exchange rate or solely to CPO prices without the full calculation.

ANTARA also reported that biodiesel distribution under B40, effective since 1 January, had reached 4.3 million kilolitres by April against a national allocation of 15.616 million kilolitres. Distribution volume and the monthly HIP measure different things. One records fuel actually delivered; the other is a pricing reference. An allocation is not the same as consumption already realised.

In the B40 programme, palm-derived biodiesel is supplied for blending with fossil diesel. The HIP helps price that biodiesel in the supply chain, but it cannot alone establish a producer's profit, the total plantation-fund support bill or the final cost to each user. Readers should view the monthly biodiesel HIP series alongside transport provisions and distribution volumes.

What the figures do—and do not—show

The news on 9 May was confirmation that the month's HIP was lower than April's; its effective date remained 1 May. The IDR 548 difference is between two official HIP figures, not evidence of an identical drop in retail prices. Assessing the effect on B40 financing would also require volumes covered, diesel prices, transport rules and applicable payment arrangements.

These figures are useful indicators of pricing within the biodiesel mandate, with clear limits. The April and May notices provide comparable monthly data, while ANTARA supplies the official's confirmation and context on exchange rates and distribution. Future comparisons should use a consistent HIP series rather than mix it with daily CPO quotations or retail fuel prices.