Full Breakdown
Japan’s Wood-Pellet Imports Drive New Wave of Indonesian Deforestation
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Rising Demand Fuels Indonesian Forest Loss
A surge in Indonesia’s wood-pellet and chip production is linked to expanding deforestation across the archipelago. Environmental NGOs report that most of the biomass product is destined for export, with Japan emerging as the largest market. The expansion threatens tropical biodiversity and the lands of Indigenous peoples living in forested regions.
Biomass Growth and Japan’s Renewable Energy Push
Globally, bioenergy use rose by more than 55 % between 2015 and 2024, according to the International Energy Agency. Japan’s share of electricity generated from biomass remains under 6 % in 2024, but the country has intensified imports to meet renewable-energy targets, favoring wood-pellet co-firing in existing coal plants. Critics argue that this approach prolongs reliance on highly polluting fossil fuels.
Scale of Export and Land Impact
- Imports from Indonesia reached a record 8.64 million tons in 2025, a 35 % increase over the previous year (Global Trade Algorithmic Intelligence Center).
- Export volumes jumped over 500 % from 66,460 tons in 2023 to 402,310 tons in 2025 (same source).
- At least 45 biomass concessions now cover more than 750,000 hectares (?1.85 million acres) of natural forest, according to Timer Manurung of Auriga Nusantara.
These concessions encroach on habitats for endangered species such as tarsiers, endemic buffalo and wild pigs, and jeopardize the cultural livelihood of Indigenous groups like the Polahi community.
Official Responses and Criticisms
Japan’s Forestry Agency declined comment on the link between imported biomass and deforestation and did not address the country’s due-diligence policies. Sayoko Iinuma, a forestry specialist at the Global Environmental Forum, warned that loopholes in Japan’s due-diligence framework could allow deforestation-linked pellets to remain on the market for years. “We are very frustrated,” Iinuma said, noting repeated requests for stricter oversight.
Katsuhiro Suzushima, an environmental researcher at the Global Environmental Forum, noted that while Japan has halted subsidies for new large-scale biomass projects, existing certified projects will continue receiving subsidies for up to 20 years after they begin operation.
Indonesia’s ministries of Environment and Forestry and of Energy and Mineral Resources did not respond to requests for comment.
Verbatim Quotes
- “The biomass industry has become a new driver of deforestation in Indonesia,” — Timer Manurung, director of Indonesia-based organization Auriga Nusantara — Timer Manurung, director, Auriga Nusantara.