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lawful and aligned with national and international sustainability campaigns linking wood pellets to deforestation are misleading
standards. and could harm communities and green energy goals.
In related news, the Director General of Sustainable Forest With over 10 million hectares of land suitable for industrial
Management, Laksmi Wijayanti, said the harvesting of timber and energy forests, Indonesia has vast potential for biomass

is strictly regulated through various permits including Forest development. However, stakeholders urged the government
Utilisation Business Permits (PBPH), Social Forestry and to review biomass pricing policies to attract more investment
Timber Utilisation Permits for Non-Forestry Activities (PKKNK) and position biomass as a key component of the nation’s
in other land use areas. renewable energy future.
These licensing frameworks require that all forest-related
activities such as land preparation, plantation development and Furniture Industry concerned on tariffs and regulations
infrastructure projects be conducted with official authorisation. Indonesia’s furniture and wooden handicraft industry is beginning
The Director of Forest Product Processing and Marketing to recover after facing global economic pressures though the
Development, Erwan Sudaryanto, said the SVLK continues rebound remains uneven. Positive momentum has been seen

to be enhanced to meet global standards, particularly those in several subsectors such as wood, rattan and bamboo
related to deforestation-free trade, while ensuring fairness for products driven by increased export orders from Japan and
domestic businesses and communities. Europe as well as domestic initiatives like the Proudly Made
The Ministry encourages public participation in monitoring in Indonesia (BBI) programme.
and improving transparency through upgraded information This government-backed initiative, along with the e-catalog
systems, aiming to strengthen confidence among both local procurement system, has helped boost local demand and
and international stakeholders in the legality and sustainability support industry growth. According to the Ministry of Industry,

of Indonesian timber. these trends have contributed to an increase in the Industrial
Confidence Index (IKI) for the furniture sector.
Green energy from legally and sustainably managed However, significant challenges persist due to volatility in
forests international trade. The fluctuating US tariff policy continues
The government reaffirmed its strong commitment to preserving to disrupt export orders, particularly for wood and upholstered
forests while ensuring that the biomass industry especially furniture, prompting manufacturers to diversify their markets
wood pellet production operates legally and sustainably. toward Europe, Japan and the Middle East.
All forest-based products in Indonesia comply with the
Timber Legality and Sustainability Assurance Program (SVLK), pxhere.com

which guarantees the legal and sustainable origin of raw
materials and is recognised by global markets.
Indonesia’s wood pellet production reached 333,971 cubic
metres in 2024 tripling since 2020 while exports soared to
US$40 million.
The leaders of the Indonesian Biomass Energy Producers
Association (APREBI) and the Indonesian Biomass Energy

Society (MEBI) stressed the importance of collaboration to
grow the biomass sector responsibly. They argued that negative