Biodiesel Price Declines, Bioethanol Rises Slightly

MINISTRY of Energy and Mineral Resources (MEMR) has announced biofuel Market Price Index (MPI) for period of May 2019, included for biodiesel which is set at Rp7,348 per liter and bioethanol Rp10,195 per liter.

Compared to April 2019, biodiesel MPI declined Rp39 per liter from Rp7,387 per liter, while bioethanol rose Rp17 per liter from Rp10,178 per liter. “The current MPI has come into effect since 1 May 2019,” Head of Communication, Public Information Service and Cooperation of MEMR Agung Pribadi said on press release, Monday (6/5/2019).

Agung added that the MPI is also set for B20 mandatory program which includes diesel fuel blending, both for special purposed fuels and general fuels. The decline in biodiesel MPI was influenced by the price of Kharisma Pemasaran Bersama (KPB) CPO for period 15 March to 14 April 2019 which was down from Rp7,078 per kg to Rp7,026 per kg.

The current biodiesel MPI is the sum of the KPB CPO price plus a US$100 per ton, multiplied by 870/Kg m3, plus a transport fee. The transportation cost was defined by the Ministry based on the decree of the Minister of MEMR No. 350 K/12/DJE/2018.

Differently, MPI bioethanol is set higher as calculated by the following formula: (KPB average mollases price for 3-month period x 4.125 kg per liter) + US$0.25 per liter. This calculation has generated biofuel MPI at Rp10,195 per liter for biofuels MPI of May 2019.

“The currency conversion was based on average foreign exchange reference rates defined by Bank Indonesia for period of 15 March to 14 April 2019. The MPI is issued monthly and evaluated at least every six months by Directorate General of New Renewable Energy and Energy Conservation. ***