Indonesia's biodiesel production could grow by 40% to hit 7M tonnes in 2019, up from an estimated 5M tonnes this year, as a result of a new programme to boost local biodiesel consumption, according to the country’s deputy minister for food and agriculture, Musdhalifah Machmud.

The world's largest palm oil producer launched an initiative in September requiring all diesel fuel to contain at least 20% biodiesel in an effort to cut Indonesia's fuel import bill, support the rupiah and increase palm oil consumption, the Star reported on 28 September.

Musdhalifah also estimated that Indonesia's palm oil output would surpass 40M tonnes in 2019, up from a forecast 39-40M tonnes this year.

"This year, the climate is good for the fruit. We also increased productivity by putting down good fertiliser," she said on the sidelines of the recent Globoil India conference.

Indonesia was also seeking a reduction in India's crude palm oil import duties to boost exports of the edible oil.

India was the world's largest buyer of edible oils, with palm oil making up the bulk of its imports, the Star said.

In March, India raised its import tax on crude palm oil to 44% from 30% and the import tax on refined palm oil to 54% from 40%

In June, India’s government also raised import taxes on crude and refined soyabean oil, sunflower oil and canola oil to their highest levels in more than a decade to support local farmers.