Biodiesel MPI for December 2019 Set Higher at Rp7.914

JAKARTA—Biodiesel Market Price Index (MPI) for December 2019 is set higher at Rp7.914 per liter and bioethanol at Rp10.348 per liter. Ministry of Energy and Mineral Resources (MEMR) has set biodiesel MPI for December 2019 rose Rp757 per liter from previous price Rp7.157 per liter.

Head of Communication, Public Information Service and Cooperation of MEMR Agung Pribadi said on press release, Monday (9/12/2019), that biodiesel MPI has risen while bioethanol MPI down Rp51 per liter from previous price Rp10.297 per liter.

The MPI is set for B20 mandatory program which includes diesel fuel blending, both for special purposed fuels and general fuels. The price has risen responding to the hike in Kharisma Pemasaran Bersama (KPB) CPO price Rp7.690/Kg from the previous month price at Rp6.813/Kg.

Transportation cost is not included in this biodiesel MPI. 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.

The currency conversion was based on average foreign exchange reference rates defined by Bank Indonesia for period of 15 October to 14 November 2019. MEMR regulates the MPI for biofuels through ministerial decrees issued each month and is evaluated at least every six months by Directorate General of New Renewable Energy and Energy Conservation. ***