Key Takeaways
- Indonesia set the October biodiesel benchmark at Rp15,072 per litre, up 0.3% from September.
- The October bioethanol reference price fell 1.8% to Rp11,604 per litre.
- The CPO-to-biodiesel conversion value remains at US$85 per metric ton.
- Indonesia is operating a B50 biodiesel mandate while preparing an incentive mechanism for planned E10 gasoline.
Lead
Indonesia biodiesel prices rose to Rp15,072 per litre for October while the country’s bioethanol reference price fell to Rp11,604 per litre, as the government continues monthly price adjustments alongside its B50 mandate and preparations for E10 gasoline.
Context
Indonesia’s Directorate General of New and Renewable Energy and Energy Conservation (EBTKE), under the Energy and Mineral Resources Ministry, set the October Market Index Price (HIP) for biodiesel at Rp15,072 per litre, excluding transportation costs.
The October benchmark represents an increase of about 0.3% from the September price of Rp15,025 per litre. The ministry also maintained the CPO-to-biodiesel conversion value at US$85 per metric ton, with transportation costs added separately.
For bioethanol, the ministry set the October HIP at Rp11,604 per litre, down about 1.8% from Rp11,814 per litre in September.
Indonesia reviews its biodiesel and bioethanol reference prices each month as part of its mandatory biofuel blending programme.
Biofuel Policy Landscape
Indonesia currently operates a mandatory B50 biodiesel programme, requiring diesel fuel to contain 50% palm oil-based biodiesel.
At the same time, the government is preparing an incentive mechanism to support the planned rollout of E10 gasoline, which would contain 10% fuel ethanol. The differing monthly movements in biodiesel and bioethanol reference prices therefore come as Indonesia manages two separate blending pathways for transport fuels.
Bioenergy Business Analysis
The October price determination highlights the different market dynamics facing Indonesia’s biodiesel and bioethanol sectors. Biodiesel’s benchmark increased modestly while the bioethanol reference price declined, even as both fuels remain tied to government-mandated blending programmes.
For biofuel producers and investors, the pricing decisions are particularly relevant because Indonesia is already implementing B50, while its planned E10 programme would expand the role of ethanol in the country’s gasoline market. The source, however, does not provide details of the planned E10 incentive mechanism or its implementation timeline.
Read more: Indonesia’s B50 biodiesel rollout reaches 104 fuel delivery points
