While Indonesia is rich in oil and gas supplies, demand in Southeast Asia's biggest economy is outpacing production and Indonesia has become a net oil importer. Production has fallen due to aging fields and insufficient investment while demand has been rising due to increased economic activity and a history of government fuel subsidies for consumers which lowered the cost and boosted domestic demand.

The government is therefore seeking alternative energy sources to secure its future and there is a strong potential domestic market for biodiesel. Over the next eight years, the government states some five million to six million hectares (12.5 million to 15 million acres) will be planted with biofuel crops, the target is to plant 1.5 million hectares of Jatropha by 2010.

This market was greatly supported by recently imposed new regulations introduced in October 2008 which mandate minimum required levels of use of biofuels:

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Therefore a real market exists for alternative fuel sources in Indonesia and current government energy policy supports this kind of development through a combination of mandating required levels of biodiesel usage and providing government support for the growing of feedstocks such as jatropha.