Price of biodiesel and bioethanol market index rose in October 2019

Index price increases for biodiesel and bioethanol in October 2019

    According to good news, the Ministry of Energy and Mineral Resources, through the New Energy, Renewable Energy and Energy Protection Agency(EBTKE), set the October 2019 price for the biofuel market index (HIP BBN), which is 7358 guilders per litre of biodiesel and 10,273 guilders per litre of bioethanol. The market price index of these biofuels, which is used to implement mandatory biodiesel with a content of 20% (B20),which is suitable for the mixture of certain types of fuel oil (BBM) and general fuel oil.

    Agung Pribadi, director of communications, public information services and cooperation at the Ministry of Energy and Mineral Resources, said that the price index for biodiesel markets in October 2019 increased by 399 guilders per litre compared with 6929 guilders per litre last month. This increase was due to an increase in the average price of palm oil(CPO) between 15 August and 14 September 2019 for the joint sales office(KPB) to 7,038 guilders per kilogram

   The biodiesel price market index is calculated using the market index price formula, i.e. (KPB's average price of bio-palm oil+US$ 100 per ton) x 870 kg per cubic meter+transportation fee. Agung said in an official statement on Thursday that the freight amount in the biodiesel price calculation formula follows the provisions of the decree of the Minister of Energy and Mineral Resources 148 K/12/DJE/2019.
   After calculation according to the set formula, the price of bioethanol also showed a similar increase, i.e. (3-month average syrup x 4,125 kg/l at the joint sales office)+0.25 USD/l, thus obtaining a market price index of 10,273 guilders per litre for biofuel in October 2019.
   Agung said: the exchange rate conversion refers to the average intermediate exchange rate of the Indonesian Central Bank for the period from August 15th to September 14th, 2019. The Director-General for New fuels, Renewable Energy and Energy Saving determines the biofuel market price index once a month and assesses it at least every six months.