Biodiesel Market Price Index for November 2019 Set Lower At Rp7,157

JAKARTA—Ministry of Energy and Mineral Resources (MEMR) has set biodiesel Market Price Index (MPI) for period of November 2019 at Rp7,157 per liter, lower Rp201 than previous month at Rp7,358 per liter. The current MPI was weighed down by the decrease of the Crude Palm Oil (CPO) average price. “The current MPI will come into effect on 1 November 2019 as stated on Letter of Director General of New, Renewable Energy and Energy Conservation Number 2765/12/DJE/2019,” Head of Communication, Public Information Service and Cooperation of MEMR Agung Pribadi said on press release, Friday (31/10/2019). The MPI will also be used as reference for blending B20 (a blend of 20% biodiesel with diesel fuel), and will be applied both for special purposed fuels and general fuels. Agung added that CPO average price charged by Kharisma Pemasaran Bersama (KPB) for period 15 September to 14 October 2019 at Rp6,813 per kg, lower Rp225 per kg from the previous month. The current biodiesel MPI is set using following pricing formula: MPI = (KPB’s CPO average price + US$100 per ton) x 870 kg/m3 + transport fee.  “The transportation cost is defined by following rule on the decree of the Minister of MEMR No. 148 K/12/DJE/2019,” Agung added. Differently, MPI bioethanol is set higher as calculated by the following formula: (KPB average mollases price for 3-month period x 4,125 kg/L) + US$0.25/Liter. This calculation has generated biofuel MPI at Rp10,297 per liter for November 2019, higher Rp24 per liter than the previous month at Rp10,273. MEMR regulates the MPI for biofuels through ministerial decrees issued each month. The MPI formula is evaluated at least every six months by Directorate General of New Renewable Energy and Energy Conservation. The currency conversion was based on average foreign exchange reference rates defined by Bank Indonesia for period of 15 September to 14 October 2019. ***