Three non-governmental organizations have released an analysis showing that Indonesia's expanding wood pellet and chip industry is fueling a new wave of deforestation. This industrial surge primarily serves Japanese energy needs, endangering Indigenous lands and critical wildlife habitats across the archipelago.
The 129% surge in exports to Japan
Between 2015 and 2024, Indonesia's wood pellet exports to Japan increased by 129%, according to new analysis by three non-governmental organizations. This growth resulted in a total of 1.1 million tons of biomass products being shipped to the East Asian nation to support its transition toward greener power sources.
This trend reflects a broader global shift where developed nations outsource their carbon footprints to the Global South. By labeling wood pellets as "renewable," countries like Japan can meet domestic climate targets while the actual environmental cost—the loss of primary tropical forests—is borne by Indonesia.
750,000 hectares of forest under 45 concessions
The research identified at least 45 concessions granted for biomass production, which cover more than 750,000 hectares (1.85 million acres) of natural forest. As the report reveals, these vast areas are being converted from undisturbed ecosystems into industrial biomass plantations.
The conversion of these lands directly impacts Indigenous communities in Indonesia who rely on the natural forest for their cultural identity and daily livelihoods. The loss of these territories often occurs without adequate safeguards, mirroring previous patterns of land grabbing seen during the palm oil boom in Southeast Asia.
Threats to tarsiers and endemic buffalo
The expansion of biomass production in Indonesia is threatening critical habitats for several vulnerable and endangered species. Specifically,the report flags the risk to tarsiers,endemic buffalo, and pigs, which depend on undisturbed tropical forests to survive.
When natural forests are replaced by monoculture biomass plantations,the complex biodiversity of the Indonesian archipelago is stripped away. This creates "green deserts" that may look forested from a satellite image but offer almost no ecological value to the region's unique fauna.
Japanese subsidies and the renewable energy paradox
Japan's demand for Indonesian wood pellets is driven by a desire to meet national renewable energy goals, but this is facilitated by continued subsidies and weak supply chain oversight. These financial incentives make it profitable for companies to raze pristine forests to feed the biomass furnaces of Japan.
This situation highlights a systemic failure in international carbon accounting.. While Japan may record a decrease in fossil fuel use, the immediate release of carbon from deforesting Indonesian jungles often outweighs the long-term benefits of switching to biomass.
The identity of the three reporting NGOs
While the findings are stark, the source report does not explicitly name the three non-governmental organizations that conducted the analysis. this leaves a gap in verifying the specific methodology used to track the 45 cnocessions and the 1.1 million tons of exports.
Furthermore, the report focuses heavily on the demand side in Japan and the ecological impact in Indonesia, but it does not include a formal response from the Indonesian government or the specific companies holding the biomass concessions. It remains unclear whether the Indonesian state views these 750,000 hectares as sustainable development or a failure of land-use policy.
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