To strengthen and expand export opportunities, the Indonesian Palm Kernel Shell Entrepreneurs Association (APCASI) participated in the International Biomass Expo 2026, held from March 17 to 19 at Tokyo Big Sight. This participation was supported by BPDP and the Directorate General of National Export Development of the Ministry of Trade, in collaboration with ITPC Osaka and the Trade Attaché of the Indonesian Embassy in Tokyo.

As part of the official program, the event was inaugurated by the Ambassador of the Republic of Indonesia to Japan, H.E. Nurmala Kartini Pandjaitan Sjahrir. On the sidelines of the exhibition, APCASI also hosted a business forum titled "The Amazing Indonesia Palm Biomass," bringing together key stakeholders from Indonesia and Japan.

APCASI Chairman Dikki Akhmar stated that the showcase featured PKS and EFB pellets. "PKS has maintained a stable market in Japan over the past three years. Moving forward, we aim to accelerate EFB pellet development as a promising alternative energy source," he said.

From a broader perspective, Indonesia's palm biomass potential is estimated at 232 million metric tons annually, equivalent to up to 38,760 MW of power generation capacity, presenting significant opportunities to support the global energy transition.

Deputy Ambassador Maria Renata Hutagalung noted that palm biomass trade contributes positively to Indonesia–Japan trade relations. "The Indonesian Embassy in Tokyo will continue to support market access and promotion for Indonesian businesses," she stated.

BPDP Director Lupi Hartono reaffirmed the agency's commitment to both promotion and research aimed at enhancing the value of palm-derived products, including biomass.

PT Sucofindo President Director Sandry Pasambuna highlighted the company's cooperation with Japan Quality Assurance to strengthen the credibility of Indonesian biomass certification.

Director General of National Export Development Fajarini Puntodewi noted that palm biomass is a key export commodity with strong potential for foreign exchange earnings, supported through coordinated promotion efforts in Japan.

Looking ahead, "with rising global demand for renewable energy, Indonesian palm biomass is well-positioned to strengthen its role as a sustainable and competitive energy source in the international market," she concluded.

The meeting was part of Indonesia's ongoing engagement with international partners to strengthen mutual understanding of sustainable forest management and the governance framework underpinning Indonesia's forest-based industries, including the emerging biomass sector.

Ade Mukadi, Director of Forest Product Processing and Marketing Development at the Ministry of Forestry, emphasized that Indonesia continues to strengthen its forest governance architecture to ensure that forest utilization is conducted responsibly and in accordance with national regulations and sustainability principles.

"Indonesia has established a comprehensive forest governance framework that integrates legality assurance, sustainability standards, and independent verification. We continue to enhance this system to ensure transparency, accountability, and supply chain integrity," Ade stated.

Tokyo Gas and Hanwa are buyers of wood pellets produced by PT Biomasa Jaya Abadi (PT BJA), which operates in Pohuwato Regency, Gorontalo Province.

Tony Rianto, Head of the Sub-Directorate for Forest Product Certification and Marketing, explained that Indonesia's forest governance system is guided by four key pillars: sustainable forest management that balances ecological, social, and economic functions; transparency and accountability; regulatory compliance; and respect for indigenous peoples and local communities.

Central to this framework is Indonesia's Timber Legality and Sustainability Verification System (SVLK), a national assurance system ensuring that forest products originate from legal and sustainably managed sources. The system covers the entire supply chain—from harvesting and transportation to processing and export—and is implemented through independent verification bodies accredited to audit forest operators, industries, and exporters.

Furthermore, Indonesia continues to enhance the system in line with evolving global market expectations, including the development of geolocation-based monitoring at harvesting sites and the digitalization of transport and export documentation.

These measures are designed to strengthen traceability and support compliance with emerging international due diligence requirements, such as the European Union Deforestation Regulation (EUDR).

During the meeting, discussions also covered Indonesia's forest utilization planning framework, including the Annual Work Plan (RKT), which regulates harvesting activities under approved long-term forest management plans and incorporates biodiversity safeguards and conservation measures.

The Ministry reaffirmed that forest utilization activities are subject to rigorous regulatory oversight and monitoring mechanisms to ensure compliance with environmental safeguards and sustainable forest management practices.

The meeting followed an earlier discussion between Tokyo Gas and Hanwa and the Pohuwato Regency Government on Monday (March 2). Regent Syaiful A. Mbuinga confirmed that PT BJA has fulfilled all licensing requirements, operates legally, and contributes to the local economy by employing more than 1,500 workers.

Investment in Pohuwato, including from PT BJA, has contributed to regional economic growth of around 9%, with the local government maintaining strict oversight of investment activities in the region.

The Indonesian Biomass Energy Producers Association (APREBI) helped facilitate the meeting between the Ministry of Forestry and the Japanese companies. "We are pleased that this dialogue could take place and that the Ministry has once again clarified its position. Hopefully, Indonesia's biomass industry will continue to grow sustainably," said Dikki Akhmar, Secretary-General of APREBI.

The Indonesian Biomass Energy Producers Association (APREBI) affirmed that Indonesia's biomass industry grows through legal and sustainable practices under the government's SVLK certification system, not through deforestation. "Wood pellet producers operate within Industrial Forest Plantations (HTI) and uphold sustainability standards. With trillions invested, no company would risk its credibility by sourcing illegally," said APREBI Secretary-General Dikki Akhmar.

Official figures show that Gorontalo now contributes approximately 29.96 percent of Indonesia's national wood pellet output. This performance positions the province as a major hub for the country's biomass industry, which plays a role in renewable energy and carbon reduction strategies.

According to the national forest authority, wood pellet production in Indonesia reached 333,971 cubic metres in 2024 (an increase from 103,356 m³ in 2020). The sector is supported by 35 active licensed plants and a combined annual licence capacity of 3.18 million m³.

Central to this growth is the Sistem Verifikasi Legalitas dan Kelestarian (SVLK), or Timber Legality and Sustainability Verification System, which ensures raw materials originate from legal and sustainable sources, notably from HTI. Director of Forest Product Processing and Marketing, Erwan Sudaryanto, stated in a November 5 forum in Jakarta that the system features a robust legal basis and independent auditing.

"SVLK ensures every forest product harvested, transported and traded in Indonesia is legal and sustainable under national law," Erwan noted.

International demand for certified wood pellets is rising, with markets such as Japan, South Korea and the European Union requiring proof of legality and sustainability. This trend gives Indonesia—especially Gorontalo—an edge in the global biomass supply chain.

From a business perspective, analysts say the Gorontalo case underscores the potential for forest-based industries to combine profitability and sustainability. With over 10.36 million hectares identified as potential land for HTI and energy plantations, Indonesia is tapping into large-scale opportunity without necessarily expanding into natural forest areas.

Although the term deforestation of Gorontalo in Indonesia remains referenced in public discourse, industry and government players argue the situation is better described as managed forestry investment under established governance frameworks, rather than uncontrolled forest loss.