Indonesia is beginning to look to wood biomass as one alternative in the energy transition, legitimized through the Energy Plantation (HTE) scheme under Ministry of Environment and Forestry Regulation No. 62 of 2021 on diversifying forest-area functions to support national energy security. Wood biomass in the form of wood pellets and wood chips is being promoted for co-firing with coal at power plants and touted as a way to reduce dependence on fossil energy. However, a CELIOS study titled The Green Ambition Trap for Forests: Japan's Energy Transition and Illegal Biomass Exports That Harm Indonesia highlights the case of Indonesia’s largest HTE concession, PT Korintiga Hutani, covering 94,378 hectares. All of its production is exported to Japan, which not only imports biomass but also invests heavily in biomass projects in Indonesia.

Japan's biomass ambitions are driven by its GX (Green Transformation) strategy, which emerged after the Fukushima disaster, as well as its Feed-In Tariff policy, which spurred a surge in biomass imports from Indonesia. Between 2012 and 2023, wood chip exports surged by 4,377.5%, while wood pellet exports skyrocketed by 254,275%, or 2,500 times. However, CELIOS found significant discrepancies in the two countries’ trade data. CELIOS researcher Viky Arthiando Putra said: “For wood chips (HS440122), the import discrepancy reached 3.04 million tons, worth USD153.9 million. For wood pellets (HS440131), the volume discrepancy was 19,547 tons, equivalent to USD5.1 million. This mismatch raises concerns about possible loopholes for illegal practices in the wood biomass supply chain.” In response, Farid Amir, Director of Agricultural and Forestry Product Exports at DAGLU, said: “In addition to the possibility of illegal exports or smuggling through unofficial routes, discrepancies may also result from changes in loading and unloading port locations that affect customs records. However, this tonnage gap must still be monitored and followed up.”

The CELIOS study also calculated Japan’s carbon debt resulting from these biomass imports. CELIOS energy researcher Fiorentina Refani emphasized: “With PT Korintiga Hutani alone exporting 963,636 m³/year of wood chips and 265,000 m³/year of wood pellets, Japan incurs a global carbon debt of 562,848.21 tons of CO2eq per year—not including emissions from land conversion or fire risks associated with monoculture systems.” She concluded by emphasizing that “the carbon-neutral narrative attached to wood biomass for the electricity sector is nothing more than a myth.” Uli Arta Siagian of Walhi also raised ecological concerns: “As long as the energy transition is framed as a business scheme, its consequences will continue to negate and marginalize communities.” Similarly, Katherine Hasan of CREA warned that claims of emissions reductions from biomass should be treated skeptically, since the evidence to date shows that its impact has not been significant.

Indonesia has been turning to wood biomass as a potential alternative in the energy transition, legitimized through the Energy Plantation (HTE) scheme under the Ministry of Environment and Forestry Regulation No. 62/2021, which allows diversification of forest land use to support national energy security. Wood pellets and wood chips are being promoted for co-firing with coal in power plants, touted as a solution to reduce fossil fuel dependence. However, a CELIOS study titled "BORNEO FOREST’S SILENT SACRIFICE: Japan's Energy Transition and the Shadow of Indonesia Illegal Biomass Trade" highlights how the largest HTE concession, PT Korintiga Hutani, with 94,378 hectares, directs 100% of its wood pellet and wood chip production to Japan. The research team underscores Japan’s deep involvement—not only importing biomass but also investing heavily in biomass projects across Indonesia.

The report reveals that Japan’s biomass ambition, driven by its GX (Green Transformation) strategy and the post-Fukushima nuclear phaseout, has fueled massive biomass imports from Indonesia. Between 2012 and 2023, wood chip exports rose by 4,377.5% and wood pellet exports skyrocketed by 254,275%—a 2,500-fold increase. Yet, glaring discrepancies were found between Indonesia’s and Japan’s trade data. CELIOS researcher Viky Arthiando Putra noted, “For wood chips (HS440122), the import discrepancy reached 3.04 million tons worth USD 153.9 million. For wood pellets (HS440131), the volume gap was 19,547 tons worth USD 5.1 million. This mismatch raises concerns over potential loopholes for illegal practices in the biomass supply chain.” Farid Amir, Director of Agricultural and Forestry Product Exports at DAGLU, also addressed this finding: “Besides possible illegal exports or smuggling through unmonitored routes, discrepancies may arise from shifts in port locations affecting customs data. But the tonnage gap must be monitored and followed up.”

The study also calculated the carbon debt Japan incurs through biomass imports. CELIOS energy researcher Fiorentina Refani explained, “With PT Korintiga Hutani alone exporting 963,636 m³/year of wood chips and 265,000 m³/year of wood pellets, Japan bears a global carbon debt of 562,848.21 tons of CO2eq annually—and this doesn’t even account for land conversion or fire risks from monoculture systems.” She concluded, “The excess emissions from planting, maintenance, and combustion show that the carbon-neutral narrative tied to wood biomass use in power generation is a myth.” Environmental concerns were echoed by Uli Arta Siagian from Walhi, who stated, “As long as energy transition is framed as a business scheme, its consequences will continue to negate and marginalize communities.” Katherine Hasan, an analyst at CREA, added that claims of emission reduction from biomass must be met with skepticism, since evidence so far shows minimal impact.

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