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The Biodiesel is an alternative diesel fuel derived from vegetable oil or animal fat by chemical reaction termed transesterification. Comparing with diesel fuel, biodiesel has many advantage such as: It can supply new energy source; It is renewable fuel and can reduce net CO2 cycle; It helps reduce exhaust gas emission to meet the future legislation due to oxygen content and high cetane number; It decrease impact to the environment due to high biodegradable. Southeast Asia, located in tropical area, has potential source to produce biodiesel. In Indonesia, Physic Nut oil now is considered as one of the most advantage source to make biodiesel due to it is non-edible and in-commercially exploited. The using of biodiesel from Physic Nut oil on diesel engine can supply as a new energy source replaced for diesel fuel and substituted palm oil as biodiesel raw material during the periods of high food sector demand.