The Indonesian government continues to promote biomass development as an alternative to fossil fuels, including through Energy Plantation Forests (HTE), which are planned for inclusion in PLN’s RUPTL and the New and Renewable Energy Bill (RUU EBET). Bhima Yudhistira, Executive Director of CELIOS, noted that “the substantial demand for wood pellets for PLTU co-firing is not only for domestic use but also for export, including to Japan. The largest buyers of Indonesian wood pellets are Japan and South Korea, at 10 million tons and 64 million tons respectively in 2023.” He added that the expansion of Japanese companies “has triggered deforestation in Kalimantan” and that commitments to decarbonization through voluntary certification have proven “ineffective in addressing supply chain issues at PT Korintiga Hutani.”

Muhamad Saleh, Legal Researcher at CELIOS, pointed to regulatory vulnerabilities in HTE, including lax oversight of concessions and ongoing agrarian conflicts. Saleh said that “National Strategic Projects are given special ease in managing forest areas. PSNs are exempt from paying Non-Tax State Revenue (PNBP) for the use of forest areas, as well as from compensation and watershed rehabilitation obligations.”

Mhd Zakiul Fikri, Legal Director at CELIOS, added that HTE projects “are not oriented toward profit-sharing or the involvement of local communities, but toward extractive forestry industries.” He stressed that the People's Plantation Forest (Hutan Tanaman Rakyat) scheme, which is intended to support community access, has instead been “hijacked by companies to increase their production capacity,” as seen at PT Korintiga Hutani in Kotawaringin Barat, leaving the agrarian reform mandated by the 1960 Agrarian Law unrealized.

The Indonesian government continues to promote biomass development as an alternative to fossil fuels, including through Energy Plantation (HTE), which are planned to be included in PLN’s RUPTL and the Renewable Energy Bill (RUU EBET). Bhima Yudhistira, Executive Director of CELIOS, highlighted that “the demand for co-firing PLTU wood pellets is not only for domestic use but also for export, notably to Japan. The largest buyers of Indonesian wood pellets are Japan and South Korea, with 10 million tons and 64 million tons respectively in 2023.” He added that the expansion of Japanese companies “has triggered deforestation in Kalimantan” and that voluntary carbon certification programs “have proven ineffective in addressing supply chain issues at PT Korintiga Hutani.”

Muhamad Saleh, Legal Researcher at CELIOS, pointed out regulatory vulnerabilities in HTE, including weak oversight of concessions and ongoing agrarian conflicts. Saleh noted that “National Strategic Projects are given ease in managing forest areas. PSNs are exempt from paying Non-Tax State Revenues (PNBP) for forest area use, as well as from compensation and watershed rehabilitation obligations.”

Mhd Zakiul Fikri, Legal Director at CELIOS, emphasized that HTE projects “are not oriented toward profit-sharing or involving local communities, but rather focused on extractive forestry industries.” He stressed that the Community Plantation scheme, which is intended to support public access and management, has been “hijacked by companies to increase their production capacity,” as seen at PT Korintiga Hutani in Kotawaringin Barat, preventing the agrarian reform mandated by the 1960 Agrarian Law from being realized.

Contact person:

Mhd Zakiul Fikri (+62 853-2811-5510)

As a matter of transparency, and to ensure that the public receives balanced information, we are attaching the full details of the response provided by PT KORINTIGA HUTANI. We believe that by presenting different perspectives, the public can assess the information more objectively and on the basis of valid data.

The response document can be accessed via the following link: