Energy ministry sets January 2026 biodiesel, bioethanol reference prices

By Ranuh Rafiani Putri

The Ministry of Energy and Mineral Resources (ESDM) has set the reference prices (Harga Indeks Pasar or HIP) for biodiesel and bioethanol for January 2026, with biodiesel prices rising slightly from the previous month while bioethanol prices were broadly stable.

Effective January 1, 2026, the HIP for biodiesel was set at Rp13,631 per litre, excluding transportation costs, up from Rp13,381 per litre in December 2025, the ministry said on Friday. The price was calculated using a Crude Palm Oil (CPO) conversion value of US$85 per metric ton, unchanged from the previous month.

The biodiesel reference price was determined in accordance with Presidential Regulation No. 132/2024 on Palm Oil Fund Management, which governs the implementation of Indonesia’s Mandatory Biodiesel Programme. The pricing mechanism follows Ministerial Decree No. 3.K/EK.05/DJE/2024, with transportation costs applied separately based on Ministerial Decree No. 290.K/EK.05/MEM.E/2025.

Read also: Biodiesel and bioethanol reference prices decline in December

Meanwhile, the HIP for bioethanol for January 2026 was set at Rp8,438 per litre, compared with Rp8,428 per litre in December, also effective from January 1.

The bioethanol price is determined under Ministerial Decree No. 6034K/12/MEM/2016, which regulates market prices for biofuels blended into fuel oil under the national biofuel programme.

Indonesia sets biodiesel and bioethanol reference prices on a monthly basis as part of its broader efforts to promote renewable energy use, stabilise fuel pricing and reduce dependence on fossil fuels through mandatory biofuel blending.

Editing by Reiner Simanjuntak