Japan's Growing Biomass Demand Is Fueling Deforestation in Indonesia, Analysis Finds

A surge in Indonesia's wood pellet and wood chip production is driving a new wave of deforestation in the country's tropical forests, according to satellite analysis by the environmental groups Earth Insight, Auriga Nusantara and the Indigenous Peoples' Alliance of the Archipelago. The groups say Japan, which is expanding its use of biomass power to meet renewable energy targets, is the biggest destination for the exported wood.

"The biomass industry has become a new driver of deforestation in Indonesia," said Timer Manurung, director of Auriga Nusantara. Worldwide bioenergy use grew by more than 55% between 2015 and 2024, according to the International Energy Agency, while biomass made up less than 6% of Japan's electricity generation in 2024, according to the Institute for Sustainable Energy Policies.

The analysis found at least 45 biomass concessions have been granted in Indonesia, covering more than 750,000 hectares (1.85 million acres) of natural forest. The groups said the concessions threaten habitats for species including tarsiers and endemic buffalo and pigs, and could erase forest relied on by Indigenous communities such as the isolated Polahi people.

Japan imported a record 8.64 million tons of wood pellets in 2025, a 35% increase over 2024, according to the Global Trade Algorithmic Intelligence Center. Wood pellet imports from Indonesia specifically surged more than 500%, from 66,460 tons in 2023 to 402,310 tons in 2025.

Katsuhiro Suzushima, an environmental researcher at Japan's Global Environmental Forum, said Japan has stopped subsidies for new large-scale biomass projects, but projects already certified will keep receiving subsidies for up to 20 years after they begin operating.