Bioethanol Market Price for August 2020 set at Rp14,779 per Liter
JAKARTA-- Ministry of Energy and Mineral Resources has announced Biofuel Market Price Index (MPI), for bioethanol for period of August 2020 is set at 14,779 per liter, higher Rp1,020 per liter from MPI for July 2020 at Rp13,759.
Head of Communication, Public Information Service and Cooperation of MEMR Agung Pribadi said on press release, (28/7/2020).
Implementation of the current MPI was defined by following rule on the fifth dictum of the decree of the Minister of Energy and Mineral Resources No. 6034 K/12/MEM/2016 on MPI of the biofuel mixed with fuels. The price applies to bioethanol mixed with gasoline and goes into effect on 1 August 2020.
The current bioethanol MPI is set using pricing formula: KPB’s molasses three month average price multiplied with 4,125 kg/L (unit factor of Kg to L) added with 0.25 USD/L which is conversion value of bioethanol raw materials. The currency conversion was based on average foreign exchange reference rates defined by Bank Indonesia for period of 15 June to 14 July 2020 at Rp14,348. **