Deforestation Linked to Wood Pellet Exports Threatens Biodiversity and Indigenous Communities in Indonesia

Wood pellet exports from Indonesia, primarily to Japan and South Korea, are linked to increased deforestation impacting 347 Indigenous territories and over 4.3 million hectares of biodiverse forests. The report reveals that between 2025 and 2026, Japan's imports accounted for nearly 75% of Indonesia's wood pellet exports, raising concerns over the sustainability of these practices.

Key Biodiversity Areas, including orangutan habitats, are at risk as more than 11 million hectares of forest cover overlap with chip mill haul zones. The Polahi Indigenous community, residing in Gorontalo, faces significant threats due to expanded wood pellet sourcing, with 21% of their forest area already deforested. The findings challenge the perception of biomass as a renewable energy source, highlighting its detrimental carbon emissions and urging for improved regulations on bioenergy trade.