Home / Environment / Indonesia's Forests Fall to Wood Pellet Demand
Indonesia's Forests Fall to Wood Pellet Demand
14 Sep
Summary
- Wood pellet production surge drives new Indonesian deforestation.
- Japan's rising demand for pellets fuels concerns over forest loss.
- Biomass industry threatens vital biodiversity and Indigenous lands.
A significant increase in Indonesia's wood pellet and chip production is now identified as a major driver of deforestation, posing a severe threat to the nation's remaining tropical forests. These forests are crucial biodiversity hotspots and home to Indigenous peoples.
The growing global demand for biomass energy, largely spurred by countries like Japan seeking cleaner energy sources, is a primary factor. Japan's import of Indonesian wood pellets saw a dramatic increase of over 500% between 2023 and 2025, reaching 402,310 tons in 2025.
Environmental organizations have raised alarms, citing new satellite analysis that indicates a growing number of concession permits for biomass across Indonesia, covering over 750,000 hectares of natural forest. This expansion directly impacts Indigenous communities, such as the Polahi people, and threatens habitats for endangered species.
Despite Japan's stated commitment to renewable energy, critics argue that current policies, including subsidies for existing projects, may inadvertently perpetuate deforestation. Loopholes in due diligence policies could allow wood pellets linked to forest destruction to continue entering the Japanese market for years to come.
