New satellite analysis by environmental groups has revealed that expanding deforestation in Indonesia is largely driven by the country's growing wood pellet and chip industry. This surge in production is threatening the remaining tropical forests, key biodiversity areas, and Indigenous lands across Indonesia. The findings highlight a troubling trend where the demand for biomass — organic material such as wood and plant waste — is leading to the clearing of natural forests, particularly in regions where regulation is weak. The biomass industry has become a significant driver of deforestation in Indonesia, according to Timer Manurung, director of the Indonesian environmental group Auriga Nusantara. He noted that much of Indonesia's biomass is exported, with Japan being the main destination. As Japan works to meet its renewable energy goals, its demand for Indonesian wood pellets has grown dramatically. Critics argue that weak oversight and continued subsidies may allow deforestation to persist despite environmental concerns. Biomass is increasingly used in power generation, often burned alongside coal in existing power plants. While some argue that this transition helps reduce reliance on fossil fuels, others warn that it prolongs the use of polluting energy sources. The International Energy Agency reports that global bioenergy use has increased by over 55% since 2015, but experts emphasize the need for sustainable practices, such as using waste and agricultural residues rather than clearing forests for biomass production. In Indonesia, environmental organizations have found that at least 45 concessions for biomass production have been granted, covering over 750,000 hectares of natural forest. These concessions threaten the livelihoods of Indigenous communities, such as the Polahi people, who rely on the forest for both survival and cultural identity. The expansion of biomass-linked deforestation also puts at risk habitats for endangered species like tarsiers and endemic buffalo. Japan's demand for Indonesian wood pellets has surged, with the country importing a record 8.64 million tons in 2025, a 35% increase from the previous year. Imports from Indonesia have risen over 500% since 2023, driven by Japan's need for alternative energy sources. While Japan has halted subsidies for new biomass projects, existing ones will continue to receive support for up to 20 years. Critics argue that current policies lack sufficient oversight to prevent deforestation-linked biomass from entering the market. Despite repeated calls for stronger due diligence, Japan's Forestry Agency has not addressed concerns about the link between imported biomass and deforestation.