Deforestation of natural forests in Pohuwato, Gorontalo by several companies, to meet the needs of wood pellet exports to South Korea and Japan (Photo: FWI)
Indonesia’s energy transition threatens the sustainability of tropical rainforests and encourages illegal exports of energy materials.
A brief report was received by the Indonesia Maritime Security Agency (Bakamla) of the Central Maritime Zone in Manado, North Sulawesi. A ship was suspected of sailing from Trikora Port, Gorontalo to Japan, with illegal cargo on the night of August 15.
The commander of the patrol State Ship (KN) Gajah Laut-404, Lieutenant Colonel Tri Haryanto decided to follow the report and prepared his men to carry out an ambush. After almost a night of lurking in Tomini Bay, at around 02.00 in the next day morning they found a suspicious ship at position 00°05’416” N – 123°07’549” E or in the waters of Tomini Bay, Gorontalo.
To confirm his suspicions, Commander Tri Haryanto ordered his personnel to open radio communication with the ship. Commander Gajah Laut ordered the ship to turn off its engine. Later, after finding out that the ship’s captain had a Filipino accent, communication was conducted in Tagalog. The ship obeyed and turned off its engine. He also introduced himself as the captain of the MV Lakas ship from the Philippines.
Bakamla ordered the MV Lakas ship to fly the Indonesian flag. According to Indonesian shipping laws, every foreign ship entering a port, while in port and about to depart from a port in Indonesia, must fly the Indonesian flag in addition to its national flag. After communicating, Bakamla personnel decided to conduct further inspection of the ship. They approached the Lakas which appeared to be slightly adrift in the sea which was quite calm that night.
On the stern of the black ship, it was written in white paint: LAKAS MANILA. The patrol boat KN Gajah Laut continued to approach the right side of the Lakas, and several patrol officers jumped with full weapons, some on standby. There was no resistance when they were ordered to stop their activities.
After a quick inspection, it was discovered that the MV Lakas was registered in the Philippines and captained by Eduardo Hermosa Abiga with 17 crew members. That night they departed from the Special Terminal Port of Trikora Village, Popayato, Gorontalo, which was specifically built to transport wood pellets to the port of Fushiki, Japan.
Unfortunately, they could not show several important documents such as the Certificate of Analysis, Certificate of Origin, and Certificate of Shipper Declaration required for the transport of dangerous goods which according to the IMSBC wood pellets are included in the dangerous good group B category.
After the hatch was opened, it was finally confirmed that the MV Lakas was indeed transporting 10,545 metric tons of wood pellets but it was suspected to be illegal. Without complete documents, MV Lakas registered with IMO number 9726736 and weighing 13,522 tons and all its crew were secured and taken to the nearest Gorontalo port to undergo further inspection.
Recently, FWI’s investigation found that pellet exports had been carried out 21 times, including by transhipment in the middle of the sea, which is still controversial due to weak government supervision.
Deforestation of natural forests in Pohuwato, Gorontalo by several companies, to meet the needs of wood pellet exports to South Korea and Japan (Photo: FWI)
The Pellet Economy
In accelerating Indonesia’s energy transition program, biomass energy, especially from wood pellets, is one of the prima donnas to replace coal, known as “dirty energy” that can worsen the climate crisis.
Director of Forest Product Processing and Marketing Development of the Ministry of Environment and Forestry Ristianto Pribadi stated that based on data there are currently 44 Forest Product Utilization Business Permit (PBPHH) units in 15 provinces that produce wood pellets. “In Gorontalo, there are two PBPHH units with a production capacity of 1.14 million m3 per year, making it the largest nationally,” he said.
The State Electricity Company (PLN), the only company permitted to produce and trade electricity in Indonesia, stated that biomass co-firing is a cheap solution to reduce emissions from fossil fuel power plants and is a strategy to reduce carbon emissions. The electricity producer is targeting 52 coal-fired power plants (PLTU) in Indonesia to use biomass-based fuel as an energy source with a portion of 5-10% by 2025. According to their data, the wood pellets needed are at least 8-14 million tons per year which will be met from the production of energy plantation forests (HTE).
PLN President Director Darmawan Prasodjo told journalists that the program is part of the green transformation carried out by PLN to reduce carbon dioxide emissions produced by power plants. “The total carbon emissions that have been successfully reduced through co-firing in 33 PLTUs are 391 thousand tons of carbon dioxide,” he said. The company will use five biomass for co-firing coal-fired PLTUs, namely sawdust, wood chips, palm shells, corn cobs, and solid combustible fuel. The company needs as much as 383 thousand tons of biomass to support co-firing at 33 PLTU locations.
Specifically for Gorontalo province, according to data from the Central Statistics Agency, wood pellets are the commodity that dominates exports in the province from January to September 2024. Head of BPS Gorontalo Province Mukhamad Mukhanif said that in general from January to September 2024, Gorontalo Province recorded exports worth 46 million US dollars and wood pellets contributed 18 million US dollars or 40 percent of total exports.
Evidence of wood pellets confiscated from the MV Lakas vessel by the Indonesian Bakamla patrol which was to be exported by PT BJA from Gorontalo to Japan, which is suspected of being illegal by environmental activists. (Photo: IST)
Forest Damage
In fact, since last January, members of the Gorontalo Regional Representative Council have highlighted the licensing problem owned by one of the companies located in Londoun Village, West Popayato District, Pohuwato Regency. The company named PT Biomasa Jaya Abadi (PT. BJA) is suspected of destroying 28 thousand hectares of Pohuwato forest and violating several regulations including licensing regulations for business actors in the Gorontalo Province. In addition, this company has also manipulated its business activities from palm oil but produces wood pellets which are similar to renewable alternative fuels.
At least, there are seven wood pellet export companies, including BJA. They obtain their raw materials from palm oil companies that have transformed into energy plantation forests (HTE), namely, PT Banyan Tumbuh Lestari (BTL) and PT Inti Global Laksana (IGL). Both of these companies are also in Gorontalo with an area of 27,353.53 hectares or around 28 thousand ha.
Likewise abroad, wood pellets are also export products, not cheap goods. According to the Wood Legality Information System, the average price of wood pellet biomass is IDR 2,170 per kilogram.
Illegal Exports
The question that arises is, if the need for biomass domestically is so high, why is PT Biomassa allowed to export to Japan and Korea? No one can answer the question clearly except because of the high price disparity between the export and domestic markets. If in the domestic market wood pellets are worth IDR 2,200/kg, then in the Japanese market they are worth IDR 8,900/kg.
After almost nine months since the regional parliament members examined PT Biomassa’s activities, they have not announced the results to the public. Forest Watch Indonesia finally decided to conduct its own investigation, and witnessed that illegal exports continued even until this report was written.
Anggi Putra Prayoga the Campaign, Advocacy, and Media Manager of Forest Watch Indonesia, said that what two companies did was not in accordance with the real energy transition. This is because the production of wood pellet biomass produces carbon emissions from the deforestation of the two companies. “What the two companies, PT Banyan Tumbuh Lestari and PT Inti Global Laksana, made was not an energy plantation forest, but an emission forest because they cleared natural forests,” Anggi told beritalingkungan.com.
From satellite and spatial imagery analysis by Forest Watch Indonesia in the 2021-2023 period, PT BTL deforested 1,105 hectares of natural forest and converted the wood into wood pellets.
Transhipment of wood pellets at sea from a small boat to an export vessel in the waters of Tomini Bay, Gorontalo, Indonesia, which is suspected of being illegal by environmental activists (Photo: FWI)
Rebuttal
A direct rebuttal came from the MV Laksa agent. According to PT Dalian Putra Maritim, the MV Lakas agent in Indonesia, the ship already had all the documents needed to export wood pellets. On August 18, after meeting with the Lakas agent, Bakamla decided to let the ship sail to its destination.
Another rebuttal came from PT BJA. Burhanuddin, the Operational Director of PT BJA in Gorontalo, confirmed that the wood pellet processing company in Pohuwato, Gorontalo Province, has selected all permits for the company’s operational activities.
PT BJA’s business activities have received approval from the Ministry of Environment and Forestry (KLHK) with the Issuance of the Decree (SK) of the Minister of Environment and Forestry (Menlhk) No. SK. 267/Menlhk/Setjen/HPL.3/5/2021 on May 28, 2021 concerning Forest Product Processing Business Licensing (PBPHH).” “The permit from the Ministry of Environment and Forestry is one of the bases for PT BJA to operate as it is now,” he said.
Meanwhile, the Ministry of Forestry and Environment (KLHK), which is most responsible for licensing all these companies, did not want to respond to questions from FWI or journalists.
In a conference of the Indonesian Biomass Energy Producers Association in Gorontalo City in mid-September, the Director of Forest Product Processing and Marketing Development of the Ministry of Environment and Forestry (KLHK) Ristianto Pribadi actually praised the export of wood pellets from Gorontalo.
He said that the wood used by the wood pellet industry must come from legitimate and legal sources, such as from Industrial Plantation Forests, plantations that already have business use rights, or Social Forestry areas managed by the community. He also said that the management of the forestry industry is now getting better, where the implementation of the Legality and Sustainability Verification System (SVLK) guarantees that every exported product comes from a source of raw materials that is well managed.
“The forestry industry has a big role to play in regional development. The key is that it is socially acceptable, ecologically sustainable and profitable,” he said. He did not even mention the status of the wood processed by the three wood pellet companies that are suspected of destroying Gorontalo’s tropical forests, namely PT BJA, PT BTL, and PT IGL and did not respond to the strong protests of environmental activists.
IGG Maha Adi
