Japanese and Indonesian Environmental NGOs Urge Hanwa Co., Ltd. to Halt Imports of Forest-Destructive Biomass Fuel “Indonesia’s forests are not fuel.”
A coalition of Japanese and Indonesian environmental NGOs submitted today a letter of request and questionnaire to Hanwa Co., Ltd., urging the company to suspend imports of wood pellets from Indonesia.
In Indonesia, so-called Industrial Plantation Forests for Energy (Hutan Tanaman Energi, HTE) have been rapidly expanding for wood pellet production, now reaching approximately 1.3 million hectares. This expansion has led to the logging of natural forests and the conversion to monoculture plantations, resulting in serious concerns about biodiversity loss, increased flood risks, and negative impacts on local communities’ livelihoods and land use.
In particular, in Gorontalo Province in northern Sulawesi, one of the known supply areas for Hanwa’s imported wood pellets, NGOs and civil society groups in Indonesia have raised strong concerns, declaring that “Indonesia’s forests are not fuel.”
Anggi Putra Prayoga, FWI Campaigner stated, “Forests have crucial functions that must be preserved, namely protecting human life from the climate crisis. There is no sustainability if the practices are destructive to forests. FWI’s investigation results in the field mention that the utilization of natural forest wood is done on a massive scale. This is also reinforced by the V-Legal report."
Defri Sofyan, Executive Director of WALHI Gorontalo, stated, “Our research in two villages—areas overlapping with concessions connected to Hanwa Co.—found that the company failed to obtain the Free, Prior, and Informed Consent (FPIC) of local communities. From the very beginning, the communities have firmly rejected the company’s presence, fearing forest destruction that could lead to floods and landslides, as well as the loss of access to forests that are essential for their livelihoods. The study also found no improvement in income or employment opportunities, contrary to company claims, alongside significant biodiversity loss and degradation of river quality.”
Junichi Mishiba, a forest campaigner at Friends of the Earth Japan, stated: “Biomass power generation has been promoted under the FIT (Feed-in Tariff) scheme as an initiative that ‘contributes to environmental conservation.’ However, it is completely self-defeating that this has led to the logging and conversion of Indonesia’s rich natural forests. The Japanese government and companies should recognize once again that the FIT system is a public scheme funded by surcharges on electricity bills, and they must review the policy accordingly.”
The signatory organizations call on Hanwa to cease importing wood pellets linked to deforestation and to disclose its procurement policy and due diligence process related to sustainability and human rights.
Signatory Organizations
- Friends of the Earth Japan
- National Executive of Wahana Lingkungan Hidup Indonesia (WALHI) / Friends of the Earth Indonesia
- Regional Executive of WALHI Gorontalo
- Forest Watch Indonesia
- Trend Asia
Date: November 6, 2025
To:
Mr. Yoichi Nakagawa
President & CEO
Hanwa Co., Ltd.
Subject: Request to Cease the Import of Wood Pellets Threatening Indonesia’s Forests
Dear Mr. Nakagawa,
Indonesia’s rich natural forests, which have long been diminished by logging and plantation development, are now facing a new crisis in the name of “decarbonization.” Under so-called Energy Plantation Forests (Hutan Tanaman Energi / HTE) established for biomass power generation and coal co-firing, natural forests are being cleared and converted into industrial plantations.
In 2019, 13 such HTE areas were established, and by 2025 this number has expanded to 57.
According to estimates by Indonesian NGOs, approximately 1.3 million hectares of forest are now at risk of being cleared for wood pellet production.
The situation is particularly serious in Gorontalo Province in northern Sulawesi, where the clearing and conversion of natural forests are destroying rich biodiversity, increasing the risk of floods, and disrupting traditional land and forest use by local communities.
Your company, Hanwa Co., Ltd., has been importing a significant volume of wood pellets from Gorontalo, Indonesia. These pellets are used as fuel in Japan’s biomass power plants and coal-fired plants engaging in co-firing. However, as described above, the production of these wood pellets is associated with severe environmental and social problems. Indonesian environmental organizations have voiced strong concerns, declaring that “Indonesia’s forests are not fuel.”
In light of these circumstances, we respectfully request that your company stop the import of wood pellets from Indonesia in order to prevent further destruction of natural forests.
We would also appreciate it if you could kindly provide responses to the attached Questionnaire Regarding Wood Pellets from Indonesia.
Sincerely,
Friends of the Earth Japan
National Executive of Wahana Lingkungan Hidup Indonesia (WALHI) / Friends of the Earth Indonesia
Regional Executive of WALHI Gorontalo
Forest Watch Indonesia
Trend Asia
Questionnaire on Wood Pellets from Indonesia
1. Awareness and Information Sources
What is your company’s understanding of the fact that wood pellet imports may be linked to natural forest clearing, biodiversity loss, and the disruption of local communities’ land and forest use?
What information serves as the basis for that understanding?
2. Consistency with Hanwa’s Environmental and Human Rights Policies
Do you not consider that such circumstances are inconsistent with your company’s environmental and social policies (*1, *2), particularly those relating to the protection of nature and respect for human rights?
*(1) Environmental Policy / Code of Conduct
a. Compliance with environmental laws and regulations (“Compliance with guidelines”)
b. Consideration for the natural environment (“Consideration for biodiversity”)
https://www.hanwa.co.jp/csr/environment/management.html
(2) Hanwa Group Human Rights Policy
https://www.hanwa.co.jp/csr/society/human-rights.html
3. Voluntary Efforts to Ensure Legality and Sustainability of Imported Wood Pellets
Your company states that it is undertaking voluntary initiatives to ensure the legality and sustainability of imported wood pellets, such as (1)Establishing procurement policies in line with legality and sustainability standards(2) Conducting voluntary due diligence.
a. Could you please disclose your company’s Procurement Policy in line with Legality and Sustainability?
b. In your voluntary due diligence, how does your company confirm the following aspects when procuring wood pellets produced in Gorontalo Province? What documents or information are used as evidence to support your verification?
i. The impact of wood pellet production on natural forests
ii. The impact on surrounding villages and residents near logging sites
iii. For each of the following:
(a) Traceability (proof of origin) (b)Legality (c)Sustainability
