Ecobiz.asia — Indonesia’s Ministry of Forestry has assured Japanese energy companies that wood pellet production in the country is carried out in line with sustainable forest management principles, amid growing international scrutiny over deforestation risks in the biomass industry.
The assurance was conveyed by Ade Mukadi, Director of Forest Product Processing and Marketing Development (BPPHH), during a meeting with representatives from Tokyo Gas Co., Ltd. and Hanwa Co., Ltd..
Both companies are buyers of wood pellets produced by PT Biomasa Jaya Abadi, which operates a production facility in Pohuwato Regency, Gorontalo Province.
The meeting was held to address concerns from the buyers regarding potential deforestation linked to the development of Indonesia’s wood pellet industry.
“We are strongly committed to sustainable forest management. That is why we pay close attention to issues such as the European Union Deforestation Regulation, as well as aspects of feasibility, legality and sustainability in forest governance,” Ade said in a statement on Friday (March 6, 2026).
Tony Rianto, head of the Forestry Ministry’s subdirectorate for forest product certification and marketing, said forest management in Indonesia is guided by four key principles: ecological, social and economic sustainability; transparency and accountability; legal compliance; and protection of community rights, including those of indigenous peoples and forest-dependent local communities.
To ensure legality and sustainability in forestry products, Indonesia has implemented the Sistem Verifikasi Legalitas dan Kelestarian, a national system that verifies that timber products are harvested, transported, processed and traded from legal and sustainable sources.
According to Tony, the SVLK covers the entire forestry supply chain, from forest management units to the marketplace. Verification is conducted by independent certification bodies that audit upstream forestry operations, processing industries and trading entities.
“This comprehensive coverage ensures full traceability from forest to market, ensuring that traded products meet legality and sustainability requirements,” he said.
The Forestry Ministry has also strengthened traceability through the integration of geolocation-based digital technologies. Timber harvesting locations, transport documents and export permits are now digitally recorded and linked to geographic coordinates that can be verified through digital platforms and QR codes.
During the meeting, Tokyo Gas and Hanwa also sought clarification on Indonesia’s deforestation control mechanisms through the Annual Work Plan (RKT) for forest utilisation, including biodiversity protection practices.
Ade explained that the RKT is a mandatory operational document prepared annually by forestry companies as part of their long-term Forest Business Work Plan (RKU).
“The RKT restricts harvesting to approved areas and volumes. It also designates protected zones where logging is prohibited, including areas that serve as wildlife protection habitats,” Ade said.
He stressed that forest management in Indonesia aims to maintain a balance between economic interests, ecological protection and the long-term sustainability of forest resources. ***
