The Indonesian Energy and Mineral Resources will be publishing the biodiesel reference price which is used in the calculation to deriving the amount of biodiesel subsidy payment to PME producers. The announcement will be made this week 27 September. The index price tracks the POGO spread from 25th to 24th of the subsequent month. The average POGO spread from 25th August to 24th September is US$426.05 or down US$13.40 from the previous period. The biodiesel price index for October is expected to fall from the September level of Rp.11,930/litre. The subsidy payment is derived by taking biodiesel price index minus diesel price index. We forecast biodiesel usage to have risen in September to 700,000 kiloliters from 653,739 kiloliters in August or up 7.08% in view of a greater movement of people and vehicles from July and August. July and August biodiesel usage was down 13% from the same time in 2020. Biodiesel subsidy payment is expected to rise significantly to US$253.50 million in September or up to US$91 million from the previous month based on 700,000 kiloliters usage in the month which is still 3.31% lower than the same time last year. See the chart below for details.