Japan's biomass energy boom threatens further deforestation in Indonesia

Indonesia's biomass energy sector is driving deforestation, threatening the country's remaining tropical forests and biodiversity hotspots, according to a new satellite analysis. Japan is the biggest destination for Indonesian wood pellets, as the country seeks to meet its renewable energy goals. Biomass power, generated primarily by burning wood, is growing globally as countries accelerate their transition to cleaner energy sources.

However, critics argue that using biomass for co-firing, or mixing it with coal, prolongs the use of polluting fossil fuels and fails to address the need for a transition to clean energy. Environmentalists and scientists warn that continued international demand and weak domestic regulation will lead to further deforestation. In Indonesia, at least 45 biomass concessions have been granted, covering over 750,000 hectares of natural forest.

Indigenous communities living in these areas are particularly vulnerable, as the loss of forest cover would erase their living spaces and cultural heritage. Japan imports a record 8.64 million tons of wood pellets in 2025, a 35% increase from 2024, with over 500% surge in imports from Indonesia. While Japan has stopped subsidies for future large-scale biomass projects, existing certified projects will continue to receive subsidies for up to 20 years.

Environmental researchers warn that Japan's due diligence policies contain loopholes that will likely allow wood pellets linked to deforestation to enter its market.