Market research

Wood fuel market in Indonesia

Release date: Mar 30, 2026

Submission: 15 minutes after payment

Research period: 2017-2025

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File format: docx, xlsx

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Earlier Report Observations

The wood fuel market in Indonesia contracted from 40.9 million cubic meters in 2018 to 36.3 million cubic meters in 2020. Rising fuel oil (BBM) prices increased production costs, while government subsidy policies kept conventional fuels affordable, reducing demand for wood as an alternative energy source. The COVID-19 pandemic further affected raw material availability and supply chain infrastructure, constraining the market.

The decline continued, with market volume falling to 31.1 million cubic meters by 2023. Significant adjustments to subsidized BBM prices in 2021 directly lowered wood fuel consumption. Export relaxations for processed wood and the 2023 launch of a pilot wood pellet plant by state-owned PTBA shifted industry focus toward more efficient biomass energy, accelerating the reduction in traditional wood fuel demand.

Subsequent factors included the May 2024 adjustment of wood export reference prices and the 2025 expansion of state-owned biomass power projects, reinforcing the development of wood pellet energy while BBM price stabilisation policies maintained competitive pressure on the traditional wood fuel segment.

Table of content

1. Disclaimer
2. Terms of use of the report
3. Product codes in the statistical classifications used in the report
4. Key Market Indicators and Trends
1. 4.1. Key Market Indicators
  1. 4.1.1. In kind
    1. 4.1.1.1. Production, 2018-2023
    2. 4.1.1.2. Imports, 2018-2025
    3. 4.1.1.3. Exports, 2018-2025
    4. 4.1.1.4. Market size, 2018-2023
  2. 4.1.2. In value
    1. 4.1.2.1. Production, 2018-2023
    2. 4.1.2.2. Imports, 2018-2025
    3. 4.1.2.3. Exports, 2018-2025
    4. 4.1.2.4. Market size, 2018-2023
2. 4.2. Market Trends and Factors
5. Production
1. 5.1. Production in Indonesia
  1. 5.1.1. Annual dynamics of production in Indonesia in kind, 2018-2023, K m³
  2. 5.1.2. Annual dynamics of production in Indonesia in value, 2018-2023, $ US
2. 5.2. Global production by Country, 2018-2023
  1. 5.2.1. Annual dynamics of production by macroregions in kind, 2018-2023, K m³
  2. 5.2.2. Dynamics of production structure by macroregions in kind, 2018-2023
  3. 5.2.3. Annual dynamics of production by country in kind, 2018-2023, K m³
  4. 5.2.4. Structure of production by countries in kind, 2018-2023
  5. 5.2.5. Dynamics of peoduction structure by countries in kind, 2018-2023
6. Imports
1. 6.1. Imports (Direct Data)
  1. 6.1.1. Imports - Total information
  2. 6.1.2. Imports in kind, K m³
    1. 6.1.2.1. Annual dynamics of product's imports to Indonesia in kind, 2018-2025, K m³
    2. 6.1.2.2. Dynamics of product's imports in kind to Indonesia by countries, 2018-2025, K m³
    3. 6.1.2.3. Structure of product's imports in kind by countries, 2018-2025
  3. 6.1.3. Imports in value, M $ US
    1. 6.1.3.1. Annual dynamics of product's imports to Indonesia in value, 2018-2025, M $ US
    2. 6.1.3.2. Dynamics of product's imports in value to Indonesia by countries, 2018-2025, M $ US
    3. 6.1.3.3. Structure of product's imports in value by countries, 2018-2025
  4. 6.1.4. Average price of product's imports, $ US/m³
    1. 6.1.4.1. Annual dynamics of average price of product's imports to Indonesia, 2018-2025, $ US/m³
    2. 6.1.4.2. Dynamics of average price of product's imports to Indonesia by countries, 2018-2025, $ US/m³
2. 6.2. Imports (Mirror Data)
  1. 6.2.1. Imports - Total information
  2. 6.2.2. Imports in kind, K m³
    1. 6.2.2.1. Annual dynamics of product's imports to Indonesia in kind, 2018-2025, K m³
    2. 6.2.2.2. Dynamics of product's imports in kind to Indonesia by countries, 2018-2025, K m³
    3. 6.2.2.3. Structure of product's imports in kind by countries, 2018-2025
  3. 6.2.3. Imports in value, M $ US
    1. 6.2.3.1. Annual dynamics of product's imports to Indonesia in value, 2018-2025, M $ US
    2. 6.2.3.2. Dynamics of product's imports in value to Indonesia by countries, 2018-2025, M $ US
    3. 6.2.3.3. Structure of product's imports in value by countries, 2018-2025
  4. 6.2.4. Average price of product's imports, $ US/m³
    1. 6.2.4.1. Annual dynamics of average price of product's imports to Indonesia, 2018-2025, $ US/m³
    2. 6.2.4.2. Dynamics of average price of product's imports to Indonesia by countries, 2018-2025, $ US/m³
7. Exports
1. 7.1. Exports (Direct Data)
  1. 7.1.1. Exports - Total information
  2. 7.1.2. Exports in kind, K m³
    1. 7.1.2.1. Annual dynamics of product's exports from Indonesia in kind, 2018-2025, K m³
    2. 7.1.2.2. Dynamics of product's exports in kind from Indonesia by countries, 2018-2025, K m³
    3. 7.1.2.3. Structure of product's exports in kind by countries, 2018-2025
  3. 7.1.3. Exports in value, M $ US
    1. 7.1.3.1. Annual dynamics of product's exports from Indonesia in value, 2018-2025, M $ US
    2. 7.1.3.2. Dynamics of product's exports in value from Indonesia by countries, 2018-2025, M $ US
    3. 7.1.3.3. Structure of product's exports in value by countries, 2018-2025
  4. 7.1.4. Average price of product's exports, $ US/m³
    1. 7.1.4.1. Annual dynamics of average price of product's exports from Indonesia, 2018-2025, $ US/m³
    2. 7.1.4.2. Dynamics of average price of product's exports from Indonesia by countries, 2018-2025, $ US/m³
2. 7.2. Exports (Mirror Data)
  1. 7.2.1. Exports - Total information
  2. 7.2.2. Exports in kind, K m³
    1. 7.2.2.1. Annual dynamics of product's exports from Indonesia in kind, 2018-2025, K m³
    2. 7.2.2.2. Dynamics of product's exports in kind from Indonesia by countries, 2018-2025, K m³
    3. 7.2.2.3. Structure of product's exports in kind by countries, 2018-2025
  3. 7.2.3. Exports in value, M $ US
    1. 7.2.3.1. Annual dynamics of product's exports from Indonesia in value, 2018-2025, M $ US
    2. 7.2.3.2. Dynamics of product's exports in value from Indonesia by countries, 2018-2025, M $ US
    3. 7.2.3.3. Structure of product's exports in value by countries, 2018-2025
  4. 7.2.4. Average price of product's exports, $ US/m³
    1. 7.2.4.1. Annual dynamics of average price of product's exports from Indonesia, 2018-2025, $ US/m³
    2. 7.2.4.2. Dynamics of average price of product's exports from Indonesia by countries, 2018-2025, $ US/m³
8. Trade balance
1. 8.1. Trade balance (Direct Data)
  1. 8.1.1. In kind, K m³
  2. 8.1.2. In value, M $ US
2. 8.2. Trade balance (Mirror Data)
  1. 8.2.1. In kind, K m³
  2. 8.2.2. In value, M $ US
9. Top buying and selling countries, 2018-2025
1. 9.1. Direct Data
  1. 9.1.1. Import in Value by Countries-buyers
  2. 9.1.2. Export in Value by Countries-suppliers
2. 9.2. Mirror Data
  1. 9.2.1. Import in Value by Countries-buyers
  2. 9.2.2. Export in Value by Countries-suppliers

Production wood fuel in Indonesia

In kind, 2018-2021, K m³

From 2018 to 2021, Indonesia ranked 10th globally in wood fuel production volume.

Top producers of wood fuel, 2018-2021

Source: SHEV.io

World map of production of wood fuel, 2018-2021

Source: SHEV.io

Indonesia's wood fuel production declined for the third consecutive year. In 2021, production reached 36 878 K m³, a 4.5% decrease compared to 2020. Over the 2018-2021 period, production fell by 12.8%, with a compound annual growth rate (CAGR) of -4.5%.

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

Parameter		2019	2020	2021	CAGR
1	Change from last year	(4.4%)	(4.5%)	(4.5%)	(4.5%)

Source: SHEV.io

In value, 2018-2021, M $ US

Indonesia's wood fuel production value also declined for the third consecutive year. In 2021, output was valued at 4 517 M US$, a significant 23.6% drop from 2020. From 2018 to 2021, production value decreased by 40.4%, with a CAGR of -15.8%.

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

Parameter		2019	2020	2021	CAGR
1	Change from last year	(11.2%)	(12.1%)	(23.6%)	(15.8%)

Source: SHEV.io

Exports wood fuel from Indonesia

Exports in kind, K m³

Wood fuel exports from Indonesia increased for the third consecutive year. In 2021, exports stood at 3 501 K m³, a 50.4% rise compared to 2020. Over the 2018-2021 period, exports grew by 62.7%, with a CAGR of 17.6%.

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

Parameter		2019	2020	2021	CAGR
1	Change from last year	2.2%	5.9%	50.4%	17.6%

Source: SHEV.io

From 2018 to 2021, Japan (42.0% of exports in kind), South Korea (20.1%), and China (11.9%) were the primary buyers of Indonesian wood fuel, together accounting for 74.0% of total exports in volume.

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

Source: SHEV.io

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

Source: SHEV.io

Exports in value, M $ US

After a two-year decline, Indonesia's wood fuel exports increased in value. In 2021, exports reached 428.8 M US$, a 20.2% uptick from 2020. Over the 2018-2021 period, export value rose by 11.2%, with a CAGR of 3.6%. The lowest value was recorded in 2020 at 356.6 M US$, with the largest decline of 5.1% occurring in 2019.

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

Parameter		2019	2020	2021	CAGR
1	Change from last year	(5.1%)	(2.5%)	20.2%	3.6%

Source: SHEV.io

During 2018-2021, Indonesian wood fuel was exported to many markets, with even the largest destinations—Japan, South Korea, and Saudi Arabia—together representing only 44.2% of total export value.

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

Source: SHEV.io

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

Source: SHEV.io

Imports wood fuel to Indonesia

Imports in kind, K m³

Wood fuel imports into Indonesia showed significant volatility. In 2019, imports peaked at 2 173 K m³, then dropped sharply to a low of 2 K m³ in 2020, a 1 151-fold difference between these years. In 2021, imports recovered to 47 K m³, a dramatic 2 416.7% increase year-over-year. The largest decline of 99.9% was recorded in 2020.

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

Parameter		2019	2020	2021	CAGR
1	Change from last year	174.3%	(99.9%)	2 416.7%	(60.9%)

Source: SHEV.io

From 2018 to 2021, Vietnam and Malaysia were the dominant suppliers of wood fuel to Indonesia, together accounting for 84.2% of total imports in volume, with other sources each holding relatively small shares.

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

Source: SHEV.io

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

Source: SHEV.io

Imports in value, M $ US

Wood fuel import values into Indonesia were highly volatile. In 2019, the value peaked at 134.1 M US$, then fell to a low of 1.1 M US$ in 2020, a 122-fold difference. In 2021, imports increased to 5.0 M US$, a 357.6% gain from the previous year. The largest decline of 99.2% occurred in 2020.

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

Parameter		2019	2020	2021	CAGR
1	Change from last year	217.4%	(99.2%)	357.6%	(50.8%)

Source: SHEV.io

Throughout 2018-2021, Vietnam (61.6% of import value), Malaysia (16.8%), and Australia (9.7%) formed the core of Indonesia's wood fuel imports, together accounting for 88.1% of total import value.

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

Source: SHEV.io

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

Source: SHEV.io