Biodiesel MPI for January 2020 Set at Rp8.706
JAKARTA--Ministry of Energy and Mineral Resources has announced Biofuel Market Price Index (MPI), included biodiesel and bioethanol for period of January 2020 and it goes into effect on 1 January 2020. Biodiesel MPI is set at Rp8.706 per liter and bioethanol at Rp10.424 per liter.
The MPI is set for B30 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 from 15 November to 14 December 2019, from Rp7.690/kg to Rp8.599/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. ***