Considering that there has been a constant high rate of growth in the demand for ADO (Automotive Diesel Oil) in the Indonesian liquid fuel mix, particularly in the transport sector, and realizing that import of ADO is the highest among liquid fuel imports, due to constraints in domestic production, a preliminary assessment has been undertaken on the possibility of subtituting or complementing the supply for ADO with biodiesel, by way of converting oil extracted from Jatropha curcas. Jatropha curcas oil has been chosen as the base material since (a) its physico-chemical properties is highly suitable to be used as feedstock for the production of biodiesel, (b) it is not an edible oil, and (c) the planting of Jatropha curcas can be undertaken in arid lands, thereby beneficial effects can be obtained, as the massive planting wood result in recovering such lands into productive uses.