Indonesia’s goals of national greenhouse gas (GHG) emission reduction and biofuel production could be pursued synergistically through the promotion of more sustainable palm oil and biofuel production practices. One strategy to produce low-carbon renewable energy is to create advanced biofuel from unused palm residues. Biofuel made from palm fronds, trunks, or empty fruit bunches that are not needed for other purposes could deliver high GHG savings while supporting the agricultural economy and displacing oil imports. This study assesses the production and other uses of palm residues and estimates the amount that could be sustainably available for biofuel.