Indonesia’s biodiesel program fuels deforestation threat, report warns A new report adds to warnings that Indonesia’s biodiesel program will drive greater deforestation by boosting demand for palm oil. It says contradictory and opaque government policies “create conditions for producers to maintain business-as-usual production systems, instead of investing in more sustainable production innovations, such as increasing land productivity.” Experts also say the biodiesel program should only serve as a transition to more sustainable forms of renewable energy, and not the long-term solution that the government is touting. Palm oil plantations are the single biggest driver of deforestation in Indonesia.