South Korean politician calls for investigation of biomass energy material imported from Indonesia

JAKARTA, Indonesia -- A South Korean National Assembly member has called for a moratorium on wood pellet imports from Indonesia and an investigation into their environmental impacts after government data and satellite analysis linked the country's biomass imports to deforestation in Indonesia.

“We should stop imports of wood pellets … and it’s important for our government to investigate exactly what kinds of environmental destruction is occurring on the spot,” Moon Dae-Lim, a lawmaker with South Korea's main liberal opposition Democratic Party, said in recent written responses to questions from The Associated Press. “Identifying and correcting potential risks in supply chains and value chains is key to a sustainable project.”

Biomass can come from organic material like plants, wood and waste, and many coal-fired power plants can be easily modified to burn it alongside coal to make energy. As countries accelerate their energy transitions, demand for biomass is growing: The use of bioenergy has increased an average of about 3% per year between 2010 and 2022, the International Energy Agency said. Experts including the IEA say it’s important for that demand to happen in a sustainable way, such as using waste and crop residue rather than converting forest land to grow bioenergy crops.

In South Korea, bioenergy has grown to become the second-largest source of renewable energy and over 80% of its main raw material — energy-dense wood pellets — is dependent on imports, according to a policy report on the state audit authored by Moon and published in October.

Data shows that a growing number of those wood pellets come from the vast tropical archipelago nation of Indonesia. In 2023 the country was the third-largest source of wood pellet imports for South Korea behind Vietnam and Russia.

Over 60% of biomass made from pristine natural forests destroyed for wood pellet production since 2021 were shipped to South Korea, AP found in an examination of satellite images, company records and Indonesian export data. In the same time frame, Indonesia's wood pellet exports to South Korea jumped from 50 tons to over 68,000 tons.

The largest exporter of wood pellets from Indonesia from 2021-2023, according to data Indonesian nongovernmental conservation organization Auriga Nusantara compiled from the Indonesian Ministry of Environment and Forestry database, was Biomasa Jaya Abadi. The wood pellet processing company is located in Gorontalo, near a concession owned by Banyan Tumbuh Lestari.

Over 3,000 hectares (7,410 acres) of forest have been razed in a concession owned by Banyan Tumbuh Lestari, from 2021 to 2024, according to satellite analysis shared with AP by international environmental organization Mighty Earth. An additional 2,850 hectares (7,040 acres) were cleared for logging roads.

“If we block the imports of (Biomasa Jaya Abadi's) wood pellets, we can prevent a great deal of forest destructions that happen in Indonesia for the purpose of exporting to South Korea,” Moon said. “The Korean government’s active responses to forest destructions can also send a message on the importance of sustainability to not only the Indonesian government but also related industries across Asia.”

In an email, a spokesperson from Biomasa Jaya Abadi said that it harvested its forest products strictly from within government-designated areas and that it replants trees.

“The company’s wood pellet ecosystem has a very rigorous legality, traceability and compliance procedures put in place to ensure that the company adheres fully to all applicable regulations in Indonesia,” the spokesperson wrote.

Environmental activist groups lauded Moon's report and questioning as a step in the right direction for demanding accountability for South Korea's biomass use.

“Moon’s questioning represents a pivotal moment. By highlighting the climate injustice tied to South Korea’s energy policies, these inquiries put pressure on the Korea Forest Service to confront its role in failing to regulate high-risk imports,” said Hansae Song, program lead at South Korea-based nongovernmental organization Solutions for our Climate. "We hope to see this scrutiny lead to a reevaluation of import standards and compel the Ministry of Trade, Industry and Energy to rethink its subsidy policies, which currently benefit a narrow group of corporate interests at the expense of global forests."

In responses to question posed by AP, the Korea Forest Service said it had asked the Indonesian government to provide biomass-related data via a South Korean-Indonesia forestry cooperation center in Indonesia. But it hasn’t received an official response as Indonesia’s Ministry of Environment and Forestry was split into the environment ministry and the forest ministry in October.

The Korea Forest Service also told AP it had confirmed that Indonesia wood pellets were produced via legal tree-cut procedures in the country. It said it respects other countries’ related domestic policies on tree cuts.

“Each country has rights to govern itself in line with its own economic and environmental policies, and that must be respected,” the Korea Forest Service said. “If we take unilateral actions on the wood products endorsed by the Indonesian government, there are concerns about possible diplomatic and trade disputes erupting. Thus, we ask for the Indonesian government to confirm relevant data and validity of certifications of legality."

Indonesia's Ministry of Forestry did not respond to requests for interview or comment from AP. Banyan Tumbuh Lestari do not have contact information publicly available; AP contacted their main shareholders seeking comment but got no response.

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Kim reported from Seoul, South Korea.

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