Pertamina Asks Government to Set a Single Weighted FAME Price for B50

Jakarta — PT Pertamina Patra Niaga has asked the government to set a uniform procurement price for FAME (fatty acid methyl ester) to support implementation of B50. President Director Mars Ega Legowo Putra made the request at a hearing with Commission XII of the House of Representatives (DPR) in Senayan on Tuesday (8 September 2026), according to Republika.

Proposal for a single weighted price

Mars explained that FAME supply is spread across many regions, while Pertamina has to deliver it to areas at varying distances. He gave the example of FAME sourced in Sumatra and then shipped to Sulawesi or Kalimantan, which means procurement and distribution costs differ as well.

• Pertamina is described as the largest supplier of subsidised B50 diesel (Biosolar), so its FAME requirement is large and drawn from many locations.
• Pertamina Patra Niaga is not the only company marketing B50, so it wants equal treatment and fair competition in procurement.
• The proposal is a single weighted price applying equally to all B50 distributors. "We hope there can be one tariff that is made uniform, set by the government," Mars said.

The request was also reported by Quantum Commodity Intelligence (10 September 2026). The available reports do not state the level of the proposed tariff.

Government response

According to Republika, the proposal is still being discussed with the Ministry of Energy and Mineral Resources (ESDM), specifically the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE), and the government is said to have welcomed the idea. We had found no official decision at the time of writing.

Background: HIP and freight costs

FAME is currently priced by reference to the biodiesel market index price (HIP), which ESDM sets every month. For July 2026, the HIP was set at IDR 14,562 per litre plus freight costs, according to CNBC Indonesia (31 July 2026), calculated from the average CPO price, a conversion factor of US$85 per tonne and a density of 870 kg/m³. Because freight is added separately from the HIP, the distance between plants and terminals becomes a cost factor that differs from one company to another.

The issue has emerged alongside the large funding requirement for B50 incentives; see also B50 Funding: BPDP's 2026 Incentive Revised to IDR 32 Trillion.