Indonesia has a large area of degraded land, i.e. 30 million ha, which could potentially be utilized for biofuel plantations. The leguminous tree pongamia (Pongamia pinnata syn. Milettia pinnata) could be utilized to produce biofuel while restoring degraded land. Here, we explore the potential of pongamia as a source of biofuel and for restoring degraded land in Indonesia. Pongamia occurs across Indonesia, in Sumatra, Java, Bali, West Nusa Tenggara and Maluku. It grows to a height of 15–20 m and can grow in a range of environmental conditions. Its seeds can generate up to 40% crude oil by weight. It can help to restore degraded land and improve soil properties. Pongamia also provides wood, fodder, medicine, fertilizer and biogas. Therefore, as a multipurpose species, pongamia holds great potential to combat Indonesia’s energy crisis and to restore much of the degraded land.