How Indonesia’s Forests Are Being Sacrificed for Global Biomass Demand

Indonesia’s forests, known for their rich biodiversity and carbon-absorbing capacities, face a rising threat from the booming international biomass energy industry. Countries like Japan and South Korea, committed to cleaner energy, are increasing their biomass imports from Indonesia, leading to large-scale deforestation. This situation is raising alarms among environmentalists and communities alike, as it risks driving the loss of critical forestland and prolonging reliance on fossil fuels.

The International Biomass Boom and Its Impact on Indonesia

Biomass energy, seen by many as a renewable alternative to fossil fuels, involves burning organic materials like wood, plant waste, and agricultural by-products to generate electricity. The flexibility of biomass allows coal power plants to burn it alongside coal, which is why South Korea and Japan are investing heavily in this energy form to meet their own carbon reduction goals. 

According to Indonesia’s export data, the surge in demand since 2021 has seen vast quantities of wood pellets, a popular biomass form, shipped predominantly to Japan and South Korea. Financial investments from these nations have incentivized the growth of Indonesia’s biomass production, but environmentalists argue that this approach undermines true sustainability by driving deforestation rather than using agricultural or wood industry waste.

Biomass Production: A New Threat to Indonesian Forests

In areas where forest lands are cleared for biomass production, the ecological impact is severe. Auriga Nusantara, a conservation organization, estimates that 9,740 hectares (around 24,070 acres) of forest have already been cleared in areas designated for biomass since 2020. Disturbingly, a third of this land includes untouched forests vital for biodiversity. Areas cleared for wood pellet production often double as critical habitats for endangered species, including Sumatran rhinos, elephants, orangutans, and tigers.

Kelsey Manurung, the director of Auriga Nusantara, highlights that forest destruction in these areas leads to increased erosion, disrupts ecosystems, and threatens both wildlife and local communities. As deforestation continues to expand, the long-term impacts could lead to ecosystem collapse, exacerbating natural disasters and reducing forests’ capacity to mitigate carbon emissions.

Biomass Production in Gorontalo and Beyond: Alarming Deforestation

In Gorontalo, on the island of Sulawesi, the toll of biomass production is particularly evident. Over 3,000 hectares (7,410 acres) of primary forest has been razed by Banyan Tumbuh Lestari, a major biomass producer. Additionally, 2,850 hectares (7,040 acres) were cleared for logging infrastructure alone. Once felled, the trees are turned into wood pellets at facilities such as Biomasa Jaya Abadi, Indonesia’s leading wood pellet exporter from 2021-2023. 

Despite the massive environmental impact, biomass producers have not responded to media inquiries, including requests from The Associated Press. Similarly, Indonesian governmental agencies have yet to provide detailed responses on policies aimed at regulating this booming industry.

The Push for Biomass Co-Firing: A Domestic Challenge

Indonesia’s own energy policy is now leaning toward biomass, with plans from the state electricity company Perusahaan Listrik Negara (PLN) to implement 10% biomass co-firing in 52 coal plants. PLN estimates that this shift would require eight million tons of biomass per year—well beyond the nation’s current production capacity of one million tons as of 2023. According to Trend Asia, a civil society group, meeting this ambitious target would demand a 66% increase in forest plantation land, likely leading to further destruction of intact forests.

Gregorius Adi Trianto, a spokesperson for PLN, has attempted to reassure the public that their biomass plans rely on organic waste rather than newly felled trees. Yet, environmentalists express doubts, pointing out Indonesia’s history of limited regulatory enforcement and potential loopholes that could lead to ongoing deforestation.

Weak Regulations and Lack of Oversight Fueling the Crisis

A core problem facing Indonesia’s biomass industry is the lack of regulatory frameworks and oversight, which many believe is accelerating deforestation. With government agencies such as Indonesia’s Ministry of Environment and Forestry yet to formalize stringent regulations, biomass companies operate with limited accountability. For example, the country’s concession system for forest use allows large swathes of land to be legally cleared for energy plantation purposes. 

In addition to international demand, the lack of regulatory framework is evident domestically. For instance, while South Korea and Japan invest millions to develop Indonesia’s biomass capacity, the local regulatory system is lagging behind, leaving room for environmental degradation. 

Environmental and Carbon Implications of Biomass Production

The environmental cost of biomass production is extensive. Unlike natural forests, biomass plantations do not support the same biodiversity, nor do they offer the same level of carbon sequestration. When forests are logged, habitats are destroyed, soil erosion increases, and natural carbon-capturing processes are disrupted. 

Some scientists argue that biomass, particularly when wood-based, could be even more carbon-intensive than coal in certain conditions, as burning wood releases large amounts of carbon while simultaneously removing trees that could otherwise absorb it. Critics of biomass use claim that it merely delays the transition to cleaner energy sources like wind and solar.

The Path Forward: Sustainability and Policy Reform

While the demand for biomass is unlikely to diminish, there are steps that both international buyers and Indonesian authorities can take to make production more sustainable. Experts recommend the use of agricultural by-products or other non-forest biomass sources. Moreover, creating strict policies that protect primary forests from being converted into biomass plantations will be essential to avoid further ecological degradation.

For Indonesia, establishing clear, enforceable regulations for biomass production and exports will be critical to preserving its forest ecosystems. Collaboration with international environmental bodies could offer models for sustainable production and forest management practices that minimize harm.
As biomass demand continues to rise, Indonesia’s forests risk becoming collateral damage in the global shift toward cleaner energy. Without meaningful intervention and strict regulatory measures, the country may see irreparable damage to one of the world’s most important natural carbon sinks, compromising biodiversity and undermining local communities.