Japan’s Indonesian Wood Pellet Imports Draw Deforestation Scrutiny

Indonesian shipments rise more than 500%

Japan’s growing use of imported biomass is facing scrutiny over claims that demand for wood pellets is contributing to natural-forest loss in Indonesia. The Associated Press reported that Japanese imports of Indonesian pellets increased by more than 500%, from 66,460 tonnes in 2023 to 402,310 tonnes in 2025. The expansion has made Japan the largest destination for Indonesia’s biomass products, according to Timer Manurung, director of Indonesian environmental organization Auriga Nusantara.

The increase forms part of a broader rise in Japanese pellet consumption. Japan imported a record 8.64 million tonnes of wood pellets in 2025, 35% more than in 2024, according to the Global Trade Algorithmic Intelligence Center, as cited by the Associated Press. Japan imports virtually all of its oil and has promoted biomass power as one of the alternatives intended to diversify its energy supply and support renewable-energy targets.

Satellite analysis links production to forest loss

Environmental organizations using satellite analysis say the expansion of pellet and wood-chip production is driving a new wave of deforestation across Indonesia. Their findings identify risks to remaining tropical forests, biodiversity areas and land used by Indigenous communities. Manurung said natural cover within concession areas supports the livelihoods and culture of communities including the isolated Polahi people. The research also identified possible effects on habitat for vulnerable and endangered species, including tarsiers, endemic buffalo and pigs.

The Associated Press previously found, through satellite images, company records and Indonesian export data, that nearly all biomass produced from forests cleared for pellet manufacturing since 2021 was shipped to Japan and South Korea. In one concession owned by Banyan Tumbuh Lestari, more than 3,000 hectares of forest were cleared between 2021 and 2024, according to satellite analysis supplied by Mighty Earth. Environmental groups argue that using natural forests for energy feedstock undermines the emissions case for biomass because logging removes carbon-storing vegetation while the wood is later burned.

Subsidies and due diligence come under pressure

Japan has provided millions of dollars of support for biomass development in Indonesia through research, policy work, construction and other assistance, the Associated Press reported after reviewing public business and government agreements. Japan has ended subsidies for future large-scale biomass projects, but previously certified plants can continue receiving support for as long as 20 years after operations begin, according to Katsuhiro Suzushima, an environmental researcher at the Global Environmental Forum.

Sayoko Iinuma, a forestry specialist and researcher at the same organization, warned that gaps in Japanese due-diligence rules could permit pellets associated with deforestation to enter the market for years. Japan’s Forestry Agency declined to comment to the Associated Press on the connection between Indonesian biomass imports and deforestation and did not answer questions about safeguards for imported fuel. Indonesia’s environment, forestry and energy authorities also did not respond. South Korea, previously the largest buyer of Indonesian pellets, sharply reduced biomass subsidies after domestic and international criticism. For Japanese utilities, pellet suppliers and investors, the dispute raises the prospect of stronger origin verification, closer concession-level monitoring and tighter eligibility requirements for subsidized fuel.