UPDATE 2-Palm oil demand from Indonesia biodiesel sector to surge by 2020 -govt agency

* Sees palm demand from biodiesel sector at 10.6 mln T by

2020

* Indonesia pushing to boost biodiesel usage

* Govt targets 90-pct increase in unblended biodiesel

consumption

* Should support palm oil prices

(Adds biodiesel consumption targets)

By Emily Chow

NUSA DUA, Indonesia, Nov 25 (Reuters) - Indonesian demand

for crude palm oil (CPO) for use in biodiesel will grow nearly

70 percent by 2020, a government agency said on Friday, as the

price gap with conventional diesel n

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