Rabu, Januari 31, 2024

Govt. Sets Applicable HIP for Diesel Engine Biofuel: Prices to be Determined Based on Previous Months Average CPO Prices and Three Other Factors

The Minister of Energy and Mineral Resources ("Minister") has decided to set the applicable market-index price (Harga Indeks Pasar – "HIP") for biofuel (Bahan Bakar Nabati/BBN) in the form of biodiesel as part of the diesel fuel mix ("Biofuel") through the issuance of Decree No. 3.K/EK.05/DJE/2024 ("Decree 3/2024"), which has been in force since 8 January 2024.
At its core, the HIP for Biofuel should be determined based on the previous months’ average prices for Crude Palm Oil ("CPO") applicable at Kharisma Bersama Nusantara’s Belawan and Dumai units (excluding value-added tax) and should also take the following items into consideration as part of the relevant calculations: 1) Conversion of CPO into Biodiesel at US$ 85/MT; 2) Conversion factor of 870 kg/m³; and 3) Transportation costs, the ceiling for which is outlined under Appendix I to Decree 3/2024.
Furthermore, the HIP applies to both general and certain specific types of Biofuels and will be determined by the Minister via the Director-General of New, Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources ("Director-General") on a monthly basis.
In terms of the transportation costs that are incurred by Biofuel business entities ("Businesses"), Decree 3/2024 determines the following: 1) For Businesses with more than one supply point: the transportation costs should be in line with those that are outlined under Appendix I to Decree 3/2024; or 2) For Businesses with other non-factory supply points: the transportation costs should be determined based on either the additional supply point or the main supply point, whichever has the lower value.

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*Syarat dan ketentuan berlaku

The Minister of Energy and Mineral Resources ("Minister") has decided to set the applicable market-index price (Harga Indeks Pasar – "HIP") for biofuel (Bahan Bakar Nabati/BBN) in the form of biodiesel as part of the diesel fuel mix ("Biofuel") through the issuance of Decree No. 3.K/EK.05/DJE/2024 ("Decree 3/2024"), which has been in force since 8 January 2024.
At its core, the HIP for Biofuel should be determined based on the previous months’ average prices for Crude Palm Oil ("CPO") applicable at Kharisma Bersama Nusantara’s Belawan and Dumai units (excluding value-added tax) and should also take the following items into consideration as part of the relevant calculations: 1) Conversion of CPO into Biodiesel at US$ 85/MT; 2) Conversion factor of 870 kg/m³; and 3) Transportation costs, the ceiling for which is outlined under Appendix I to Decree 3/2024.
Furthermore, the HIP applies to both general and certain specific types of Biofuels and will be determined by the Minister via the Director-General of New, Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources ("Director-General") on a monthly basis.
In terms of the transportation costs that are incurred by Biofuel business entities ("Businesses"), Decree 3/2024 determines the following: 1) For Businesses with more than one supply point: the transportation costs should be in line with those that are outlined under Appendix I to Decree 3/2024; or 2) For Businesses with other non-factory supply points: the transportation costs should be determined based on either the additional supply point or the main supply point, whichever has the lower value.

......