14/01/2008 (Reuters) - Indonesian palm oil-based biodiesel output is expected to nearly double to 1.3 million tonnes this year on expected strong demand in the overseas market, a senior industry official said on Monday.

Biodiesel capacity is expected to increase by 600,000 tonnes this year from the existing 1.2-1.3 million tonnes a year, said Paulus Tjakrawan, secretary general of the Association of Indonesian Biofuels Producers.

Indonesia, the world's biggest palm oil grower, produced 700,000 tonnes of palm-based biodiesel last year.