Non coniferous wood fuel market in Indonesia

Earlier Report Observations

The Indonesian non-coniferous wood fuel market experienced a sustained contraction in volume from 42.2 thousand m³ in 2018 to 33.0 thousand m³ in 2023. This downward trend was most pronounced in 2020, when the COVID-19 pandemic severely disrupted forestry sector operations, leading to a reported 20% drop in natural log production and a 10% decline in processed wood exports, which directly reduced market supply.

Market contraction continued in the following years, with a gradual year-on-year decline through 2023. During this period, export volumes of wood fuel rose steadily, reaching 2.7 thousand m³ by 2023, which likely contributed to tighter domestic availability alongside the broader production slump.

Recent industry developments include the Ministry of Trade's introduction of Export Benchmark Prices for processed wood in May 2024, affecting export market conditions. Furthermore, 2025 saw the launch of a pilot wood pellet plant for co-firing in power plants and the enactment of a presidential regulation on carbon economic value, signaling policy and innovation shifts within the biomass energy sector.

Production non coniferous wood fuel in Indonesia

In kind, 2018-2021, K m³

From 2018 to 2021, Indonesia ranked 9th globally in the production of non-coniferous wood fuel.

Top producers of non coniferous wood fuel, 2018-2021

World map of production of non coniferous wood fuel, 2018-2021

Indonesia's production of non-coniferous wood fuel declined for the third year in a row. In 2021, the country produced 36 878 K m³, marking a slight decrease of 4.5% compared to the previous year. Over the period from 2018 to 2021, production fell by 12.8%, which translates to an average annual decline of 4.5%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K m³

In value, 2018-2021, M $ US

Non-coniferous wood fuel production in Indonesia decreased for the second consecutive year. In 2021, the output was valued at 1 641 M $ US, reflecting a moderate drop of 9.5% from the year before. Between 2018 and 2021, production declined by 25.4%, averaging a 9.3% annual decrease. The highest value was recorded in 2019 at 2 303 M $ US, with the largest decline occurring in 2020 at 21.3% and the largest increase in 2019 at 4.7%.

Annual dynamics of production in Indonesia in value, 2018-2021, M $ US

Exports non coniferous wood fuel from Indonesia

Exports in kind, K m³

Exports of non-coniferous wood fuel from Indonesia grew for the third consecutive year. In 2021, shipments reached 2 199 K m³, representing a significant increase of 105.5% compared to the previous year. From 2018 to 2021, exports rose by 148.3%, equating to an average annual growth rate of 35.4%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, K m³

Between 2018 and 2021, Japan was the main market for Indonesia's non-coniferous wood fuel exports, accounting for 77.8% of total exports in volume, while other destinations played a smaller role.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, M $ US

The market exhibited volatility during this period. Export volumes reached their lowest point in 2018 and peaked in 2021, with a 2.1-fold difference between these years. In 2021, exports totaled 97.8 M $ US, showing a rise of 94.6% from the previous year. The largest decline was recorded in 2020 at 12.6%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, M $ US

From 2018 to 2021, Japan was the key buyer of non-coniferous wood fuel from Indonesia, taking 78.8% of total exports in value, with other countries making up the rest.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports non coniferous wood fuel to Indonesia

Imports in kind, K m³

The import market showed volatility over the observed years. Imports hit their lowest point in 2020 and peaked in 2019, with an 8 238-fold difference between these years. In 2021, Indonesia imported approximately 44 K m³ of non-coniferous wood fuel, up by 16 707.8% compared to 2020. The minimum volume was recorded in 2020 at 0.3 K m³, while the maximum was in 2019 at 2 171 K m³, with the largest decline occurring in 2020 at 100.0%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, K m³

Throughout 2018–2021, Vietnam and Malaysia were the primary sources of non-coniferous wood fuel imports to Indonesia, together dominating the market, while other countries had less individual significance.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, M $ US

Volatility characterized the import market during these years. Import volumes varied widely, dropping to a low in 2020 and reaching a high in 2019, with an 856-fold difference. In 2021, Indonesia's imports totaled 2.5 M $ US, increasing by 1 493.6% over the previous year. The minimum value was recorded in 2020 at 0.2 M $ US, the maximum in 2019 at 133.0 M $ US, and the largest decline in 2020 at 99.9%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, M $ US

Over 2018–2021, Vietnam and Malaysia were the dominant suppliers of non-coniferous wood fuel to Indonesia, together accounting for 80.6% of total imports in value, with other destinations each holding relatively small shares.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021