Japan’s biomass energy boom threatens further deforestation in Indonesia
Indonesia’s rapid growth in wood pellet and chip production is spurring a new wave of deforestation, endangering tropical forests, key biodiversity areas and Indigenous territories. Japan’s soaring demand for Indonesian biomass fuels the trend, while weak regulation and subsidies risk further fores…
Indonesia’s forests are under a new threat. A surge in the country’s wood pellet and chip production is driving a fresh wave of deforestation that endangers the archipelago’s remaining tropical rainforests, critical biodiversity hotspots and the lands of Indigenous peoples. Satellite data released by a coalition of environmental NGOs shows that the expansion of biomass facilities is cutting down large swaths of forest, a trend that could reverse decades of conservation progress.
What’s Fueling the Boom?
Biomass power, which burns organic material such as wood, is gaining traction worldwide as nations look for cleaner alternatives to coal and oil. In Indonesia, the industry is still in its infancy but growing rapidly. According to the International Energy Agency, global biomass use has risen more than 55% between 2015 and 2024. In Japan, the share of electricity generated from biomass is small—less than 6% in 2024—but the country’s demand for Indonesian wood pellets has exploded, with imports reaching a record 8.64 million tonnes in 2025, a 35% jump from the previous year.
Japan’s energy strategy is driven by its limited domestic resources. The island nation imports virtually all of its oil and is investing heavily in alternative energy sources. Japanese companies and the government have provided financial support for biomass projects in Indonesia, covering research, policy development, and infrastructure. Although Japan has stopped subsidies for new large‑scale biomass projects, existing projects can receive subsidies for up to 20 years after they begin operation, creating a long‑term incentive to expand.
How Deforestation is Spreading
Satellite imagery shows that the expansion of biomass mills is linked to the clearing of forest land. The NGOs that produced the analysis—Earth Insight, Auriga Nusantara, and the Indigenous Peoples’ Alliance of the Archipelago—identified at least 45 biomass concessions covering more than 750,000 hectares (about 1.85 million acres) of natural forest. These concessions are spread across the country, and many Indigenous communities rely on the forest for their livelihoods and cultural identity.
Timer Manurung, director of Auriga Nusantara, warned that the growth of biomass production threatens not only the forests but also the biodiversity that depends on them. “The biomass industry has become a new driver of deforestation in Indonesia,” he said. “And most of the biomass product is for export, with Japan as the biggest destination.” The loss of forest cover threatens habitats for species such as tarsiers, endemic buffalo, and pigs—many of which are vulnerable or endangered.
Regulation and Oversight: A Gap in the System
Indonesia’s ministries of Environment and Forestry, Energy and Mineral Resources, and the Forestry Agency have not responded to requests for comment on the findings. Critics argue that weak oversight and loopholes in Japan’s due‑diligence policies allow wood pellets linked to deforestation to enter the market. Sayoko Iinuma, a forestry specialist at the Global Environmental Forum, said, “We are very frustrated. We’ve asked for due diligence many times.”
Japan’s Forestry Agency declined to comment on the link between imported biomass and deforestation. The agency also did not reply to questions about policies that would ensure imported biomass is not linked to forest loss. Meanwhile, South Korea, once the largest importer of Indonesian wood pellets, reduced its subsidies for biomass energy after mounting criticism of its environmental impact.
Why the Issue Matters
Deforestation in Indonesia has far‑reaching consequences. It contributes to soil erosion, damages biodiversity, threatens the livelihoods of Indigenous peoples, and exacerbates the impacts of extreme weather events. Moreover, the burning of wood‑based biomass can emit more carbon than coal, undermining the very goal of reducing greenhouse gas emissions. If the biomass boom continues unchecked, Indonesia could lose a significant portion of its remaining forest cover, jeopardizing global biodiversity and climate goals.
What’s Next?
Environmental groups are calling for stricter regulation and better enforcement of due‑diligence standards. They urge Indonesia to limit the allocation of new biomass concessions to areas that are not critical habitats or Indigenous territories. Japan, on the other hand, is expected to maintain its subsidies for existing projects while reviewing its import policies. The outcome will hinge on the cooperation between Indonesian authorities, Japanese regulators, and the international community to ensure that the push for renewable energy does not come at the expense of the world’s remaining tropical forests.
Why it matters
The unchecked expansion of Indonesia’s biomass industry threatens vital ecosystems and Indigenous livelihoods, while also undermining global efforts to reduce carbon emissions.
Key points
- Indonesia’s wood pellet boom is driving new deforestation, endangering forests and biodiversity
- Japan is the largest importer of Indonesian biomass, fueling the demand
- At least 45 biomass concessions cover over 750,000 hectares of forest
- Weak regulation and subsidies risk continued forest loss
- Deforestation threatens Indigenous communities and endangered species
- Stricter oversight and due‑diligence are needed to balance energy goals with conservation
Frequently asked questions
What is biomass energy?
Biomass energy is produced by burning organic materials such as wood, plant residues, or agricultural waste to generate heat or electricity.
Why is Japan importing Indonesian wood pellets?
Japan lacks sufficient domestic fossil fuel resources and is seeking cleaner energy alternatives; Indonesian wood pellets provide a renewable source to meet its energy targets.
How does biomass affect carbon emissions?
While biomass is renewable, burning wood can release more carbon than coal, especially if forests are cleared to grow bioenergy crops.
What can be done to prevent further deforestation?
Implement stricter regulations, enforce due‑diligence policies, limit new concessions in critical habitats, and promote the use of waste and crop residues instead of forest land.
