Indonesia to Japan Wood Pellet Export Guide 2025

1. Market Overview: Indonesia as a Wood Pellet Supplier to Japan

Indonesia has rapidly emerged as one of Japan's primary suppliers of wood pellets, fueled largely by Japan's renewable energy policy. Between 2021 and 2023, Indonesian wood pellet exports to Japan grew from just 54 metric tons to over 52,735 metric tons — a dramatic increase driven by Japan's Feed-in Tariff (FIT) program and its long-term carbon neutrality goals.

Japan and South Korea together absorbed more than 99% of Indonesia's wood pellet exports during this period, making the Japan market strategically critical for Indonesian exporters. Key production provinces include Central Java, East Java, and Gorontalo, utilizing wood species such as Sengon, Meranti, and Teak.

Key Trade Figures (2021–2024):

Year	Indonesian Exports to Japan (Metric Tons)
2021	~54 MT
2022	~15,000 MT (est.)
2023	~52,735 MT
2024	Growing (102,265 MT total to Japan + Korea, Oct 2023–Aug 2024)

The trade corridor is governed by two key trade agreements: the Japan-ASEAN Comprehensive Economic Partnership Agreement (AJCEP), effective December 2008, and the Japan-Indonesia Economic Partnership Agreement (JIEPA), effective July 2008. These agreements set preferential tariff rates that benefit Indonesian exporters.

Wood Pellet Export Indonesia to Japan: Complete Requirements Guide (2025)

See also: Learn how to choose the right fuel for your pellet stove.

2. Japan's Wood Pellet Import Market Profile

Understanding Japan's market structure is essential for exporters seeking to comply with buyer requirements.

Why Japan Imports So Many Wood Pellets

Japan pledged to reduce GHG emissions by 46% by fiscal year 2030 (from FY2013 levels) and achieve carbon neutrality by 2050. The 2023 Green Transformation (GX) Basic Policy, approved by PM Kishida's Cabinet, designates renewable energy — including biomass — as a primary power source. Japan imported an estimated 4.25 million bone-dry tons of wood pellets in 2023.

Market Segmentation

Japan classifies imported wood pellets under two categories within its FIT system:

"Unutilized wood" — Domestic material from forest thinning and residues (higher subsidy tier)
"General wood and agricultural residues" — Includes all imported wood pellets (lower subsidy tier, but large volume)

Key Japanese Importers of Indonesian Wood Pellets

Identified Japanese importers include:

Mizuho Farm Co., Ltd.
Shammah Co., Ltd.
SMB Kenzai Co., Ltd.
Hanwa Co., Ltd.
Optimum Trading Co., Ltd.
CNS Co., Ltd.

Japan's 2030 Biomass Target

Japan has set a biomass power target of 3.7–4.6% by 2030 (approximately 20% of total renewable generation), translating to estimated annual biomass demand of 13–18 million metric tons. This structural demand makes the Japanese market a long-term opportunity for Indonesian suppliers who can meet compliance requirements.

3. Indonesian Export Regulations & Documentation

Before reaching Japan, wood pellet exports from Indonesia must comply with several Indonesian government regulations. Non-compliance — including missing documents — has led to seizures and enforcement actions in recent years.

3.1 Mandatory Export Documents from Indonesia

Every shipment of wood pellets from Indonesia to Japan requires the following documents:

Document	Issuing Authority	Purpose
V-Legal Document	Accredited LVLK (Timber Legality Verification Body)	Proof of legal timber sourcing; required per SVLK
Certificate of Origin (CoO)	Ministry of Trade / Chamber of Commerce	Preferential tariff eligibility under JIEPA/AJCEP
Certificate of Analysis (CoA)	Certified laboratory	Product quality and specification verification
Shipper's Declaration / IMDG Certificate	Shipper	Required for hazardous goods classification under IMSBC Code
Packing List	Exporter	Customs declaration
Bill of Lading (B/L)	Shipping company	Title and transport document
Commercial Invoice	Exporter	Customs value declaration
Phytosanitary Certificate	Ministry of Agriculture (BKSDA)	If required by Japan's plant quarantine authority

Important: The Certificate of Analysis, Certificate of Origin, and Shipper's Declaration are specifically required under the International Maritime Solid Bulk Cargoes (IMSBC) Code for wood pellet shipments. Seizures have occurred when these documents were absent.

3.2 SVLK (Sistem Verifikasi Legalitas Kayu) — Mandatory Timber Legality Certification

The Indonesian Timber Legality and Sustainability Verification System (SVLK) is the cornerstone of Indonesian wood export regulation. Under Minister of Environment and Forestry Decision No. SK 9895/MenLHK-PHL/BPPHH/HPL.3/2022, SVLK certification is mandatory for all wood product exporters from Indonesia, regardless of whether the export destination is the EU, Japan, or elsewhere.

SVLK comprises two core standards:

VLK (Verifikasi Legalitas Kayu) — Timber Legality Verification
PHPL (Pengelolaan Hutan Produksi Lestari) — Sustainable Production Forest Management

What exporters need:

An S-LK (Sertifikat Legalitas Kayu) or S-PHPL certificate from a KAN-accredited Certification Body (LVLK)
A V-Legal Document issued per shipment (per invoice) — valid for 4 months from issuance
The V-Legal Document must be obtained from an accredited LPVI (Independent Assessment and Verification Body)

Key SVLK Facts:

Indonesia is the only country in the world with a FLEGT (Forest Law Enforcement, Governance and Trade) license
For exports to Japan, the document is called a V-Legal Document (the FLEGT license terminology applies only to EU/UK destinations)
Applies to 48 HS codes covering wood products
SVLK certificate valid for 3 years with annual surveillance audits
Exporters must document chain of custody from raw material source to finished product

3.3 Required Business Licenses for Wood Pellet Exporters

Indonesian companies exporting wood pellets must hold:

NIB (Nomor Induk Berusaha) — Business Identification Number
SIUP — Trade Business License
ETPIK (Eksportir Terdaftar Produk Industri Kehutanan) — Registered Exporter of Forest Industry Products
Tax Identification Number (NPWP)
Deed of Incorporation
Company Registration Certificate

3.4 Export Licensing Updates (Permendag 8 & 9 of 2025)

Per Indonesian Ministry of Trade Regulation updates in 2025 (Permendag 8/2025 and 9/2025), forestry products including wood and bamboo fall under enhanced export policy oversight. Exporters must stay updated on the current list of regulated and banned commodities under MOF Decree No. 6/KM.4/2025 (effective March 2025).

3.5 Wood Pellet Classification Under Indonesian Law

Wood pellets are solid biomass fuels and are generally classified under HS Code 4401.31.00 (wood pellets) in Indonesian customs. They are subject to SVLK requirements as a processed wood product from forest industry.

4. Japanese Import Requirements & Regulations

Japanese importers of Indonesian wood pellets must comply with multiple Japanese regulatory frameworks. Understanding these requirements is critical for Indonesian exporters seeking to build long-term supply relationships with Japanese buyers.

4.1 Japan Customs Import Procedures

Wood pellets imported into Japan must:

Be declared to Japan Customs (税関) with correct HS code classification
Be accompanied by a Commercial Invoice, Packing List, and Bill of Lading
Comply with Japan's Plant Protection Law (quarantine requirements for solid wood biomass)
Undergo Plant Quarantine Inspection by the Ministry of Agriculture, Forestry and Fisheries (MAFF) if required

4.2 Plant Quarantine Requirements (Japan MAFF)

Wood pellets, as processed wood products, generally face lower phytosanitary risk than raw logs or chips; however, importers must confirm current MAFF guidance. Exporters should:

Confirm whether a Phytosanitary Certificate from Indonesia's BKSDA is required
Ensure pellets are manufactured to a temperature that kills any plant pests (typically during the pelletizing process at >70°C)
Check Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) website for updated import permits

4.3 Tariff Rates under JIEPA/AJCEP

Under the Japan-Indonesia Economic Partnership Agreement (JIEPA) and Japan-ASEAN Comprehensive Economic Partnership Agreement (AJCEP), Indonesian wood pellets may qualify for preferential tariff rates. The Certificate of Origin (Form JIEPA or Form AJ) must be submitted at customs to claim these preferential rates.

Verify current tariff rates through Japan's METI Tariff Schedule or the Japan Customs Tariff Portal, as rates are subject to periodic review.

5. Sustainability Certification Requirements

This is the most critical compliance area for Indonesian wood pellet exporters targeting Japan's biomass energy sector. Japan's regulatory and market environment increasingly demands credible sustainability certification.

5.1 Overview of Recognized Certification Schemes

Japan's Ministry of Economy, Trade and Industry (METI) recognizes several third-party chain-of-custody (CoC) certification schemes for biomass used in its FIT/FIP programs:

Certification	Full Name	Recognition Status
FSC	Forest Stewardship Council	Recognized by METI
PEFC	Programme for the Endorsement of Forest Certification	Recognized by METI
SFI	Sustainable Forestry Initiative	Recognized
SBP	Sustainable Biomass Program	Recognized; METI-approved in 2024
RSB	Roundtable on Sustainable Biomaterials (Japan FIT Scheme)	Formally recognized by METI (August 2024)
SVLK/V-Legal	Indonesian Timber Legality System	Accepted as base legality proof

Note: While Indonesia's SVLK/V-Legal certification satisfies the legality requirement, Japanese power plant operators increasingly require FSC, SBP, or PEFC certification to satisfy their internal sustainability procurement policies and future METI sustainability requirements.

5.2 Sustainable Biomass Program (SBP) — Key Certification for Japan FIT

The SBP certification scheme was specifically approved by Japan's METI as compliant with the FIT/FIP legislative requirements. For Indonesian exporters supplying biomass power plants:

SBP certification covers the full supply chain from forest to power plant
SBP requires lifecycle GHG calculations (see Section 6.2)
The SBP Instruction Document for Japan (v1.0, March 2024) provides specific GHG default values for Indonesian-origin wood pellets based on transport distance categories (6,500 km, 9,000 km, and 18,000 km from Indonesia to Japan)

5.3 RSB Japan FIT Scheme

In August 2024, METI formally recognized the Revised RSB Standard for Japan FIT (RSB-STD-13-001) Version 2.0, which expanded the list of eligible feedstocks. This provides another pathway for Indonesian exporters to demonstrate compliance with Japan's FIT sustainability criteria.

5.4 METI's Biomass Sustainability Working Group Criteria

Japan's Biomass Sustainability Working Group evaluates biomass fuel sustainability under the following criteria:

Environment — No clearing of primary forests; biodiversity protection
Social and Labor — Community rights, worker welfare
Food conflicts — No competition with food production
Governance — Legal compliance in the country of origin

6. Japan's FIT/FIP Program & Biomass Eligibility

6.1 What is the FIT Program?

Japan's Feed-in Tariff (FIT) program, established under the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources (Act No. 108 of 2011), offers guaranteed purchase prices for renewable electricity — including electricity from biomass power plants using wood pellets.

Since 2022, no new FIT certification for imported woody biomass power plants is being issued in Japan. However, existing FIT-approved power plants continue to operate and procure wood pellets, representing the bulk of current import demand.

The Feed-in Premium (FIP) program has partially replaced FIT for newer projects, offering market-linked premiums rather than fixed tariffs.

6.2 Lifecycle GHG Emission Requirements

From April 2023, METI required all FIT/FIP biomass power generators to calculate lifecycle GHG emissions for their fuel. METI published default GHG emission values for different biomass feedstocks and transport routes.

For Indonesian wood pellets specifically, the SBP Instruction Document for Japan (2024) provides these GHG calculation categories:

Transport distance categories for Indonesian wood pellets to Japan:

Short haul: ~6,500 km
Medium haul: ~9,000 km
Long haul: ~18,000 km

Raw material type categories:

Forest residues
Other trees and Short Rotation Coppice
Sawmill residues

Exporters supplying FIT/FIP-eligible power plants must either provide actual lifecycle GHG data or rely on METI-published default values. The calculation must account for:

Forest harvesting
Transport to pellet mill
Pelletizing process (including drying fuel type)
Maritime transport (using Handy Size or Supramax ship defaults)
Power generation process

6.3 Biomass Sustainability Reporting (From April 2024)

From April 2024, METI introduced mandatory sustainability requirements for Palm Kernel Shell (PKS). While this directly targeted PKS, it signals Japan's direction toward broader mandatory sustainability requirements for all imported biomass including wood pellets. Power plants are required to report information on biomass sustainability to METI.

7. Japan Revised Clean Wood Act (April 2025)

This is one of the most significant regulatory changes affecting the Japan wood pellet import market in 2025.

7.1 Background

Japan's original Clean Wood Act (Act on Promotion of Use and Distribution of Legally Harvested Wood and Wood Products, 2016) was a voluntary program. The Revised Clean Wood Act was passed in Japan's Diet on May 8, 2023, and came into full effect on April 1, 2025.

7.2 Key Changes Under the Revised Act

The major change is the mandatory legality due diligence requirement for Type 1 wood-related businesses (including importers):

Type 1 businesses (importers) must now:

Collect raw material information, including:
- Tree species name (scientific name preferred)
- Harvested area (country, region)
- Documentation proving legality of harvest (government certificates, FSC/PEFC certifications, SVLK V-Legal documents)
Confirm legality through risk-based due diligence:
- Assess risks based on collected information and government-published country risk assessments
- Conduct additional checks for high-risk origins
Create and maintain records for 5 years, including:
- Raw material information collected
- Results of legality due diligence
- Reasons for confirming legality
Transfer information to downstream buyers when products are sold
Report annually if handling volumes exceed thresholds:
- Imported timber: total volume of 30,000 m³ or more (log equivalent)
- Imported furniture, paper, and other goods: 15,000 tons or more

7.3 What This Means for Indonesian Exporters

For Indonesian wood pellet exporters, the Revised Clean Wood Act means Japanese buyers must now document the legal origin of every shipment. As a supplier, you should:

Ensure your SVLK V-Legal Document is valid and accompanies every shipment
Provide the species name and harvest area information with each delivery
Be prepared to share your SVLK certificate and chain-of-custody documentation
Understand that Indonesia's SVLK/V-Legal system is explicitly recognized as sufficient documentation under the Revised Clean Wood Act
Consider obtaining FSC or PEFC CoC certification to simplify your Japanese buyer's due diligence process

8. Quality Standards & Product Specifications

8.1 ISO 17225-2 Standard for Industrial Wood Pellets

The international standard for wood pellet quality most relevant to Japan's industrial/energy sector is ISO 17225-2, which classifies industrial wood pellets into grades I1, I2, and I3.

Japanese power plant operators typically require Grade I1 or I2 pellets with the following specifications:

Parameter	Unit	Typical Japanese Requirement
Diameter	mm	6–12 mm
Length	mm	≤ 40 mm (3.15× diameter)
Moisture content	% (ar)	≤ 10%
Ash content	% (d)	≤ 1.5% (I1), ≤ 3.0% (I2)
Calorific value (NCV)	MJ/kg (d)	≥ 16.5
Mechanical durability	%	≥ 97.5%
Fines (< 3.15 mm)	%	≤ 1.0%
Bulk density	kg/m³	≥ 600

8.2 JAS Standard for Wood Pellet Fuel

On June 15, 2023, Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) published a new Japanese Agricultural Standard (JAS) for wood pellet fuel for residential use. While this JAS standard primarily targets residential pellets, it signals Japan's direction toward more formalized domestic quality standards.

For industrial/power generation pellets, buyers typically reference ISO 17225-2 or specify requirements in commercial contracts.

8.3 Certificate of Analysis Requirements

Japanese buyers typically require a Certificate of Analysis (CoA) from an accredited testing laboratory for each shipment, covering at minimum:

Moisture content
Ash content
Calorific value (gross and net)
Mechanical durability
Fines content
Bulk density
Chemical analysis (chlorine, sulfur content if required)

9. HS Code & Customs Classification

Indonesia Export HS Code

4401.31.00 — Wood pellets (sawdust and wood waste and scrap, agglomerated in the form of logs, briquettes, pellets or similar forms)

Japan Import HS Code

4401.31 — Wood pellets
Confirm with Japan Customs Tariff Schedule for exact 9-digit tariff line

Important Notes on Classification

Biomass fuel pellets made entirely from wood should be classified under 4401.31
Pellets made from agricultural residues may have different HS codes
Correct classification affects tariff rate and applicable FIT eligibility

10. Logistics & Shipping Considerations

10.1 Shipping Route & Distance

Major Indonesian export ports for wood pellets:

Semarang (Central Java)
Surabaya (East Java)
Gorontalo (Sulawesi)

Typical shipping distance from Indonesian ports to Japanese ports: approximately 5,000–6,500 km

10.2 Ship Types & Bulk Cargo Classification

Wood pellets are classified as a Group B cargo under the IMSBC Code (International Maritime Solid Bulk Cargoes Code), meaning they can liquefy or undergo other physical changes under certain conditions. Specific requirements include:

Declaration of the cargo as wood pellets (IMSBC Schedule)
Shipper's Declaration confirming cargo properties
Monitoring for CO and oxygen-depleting gases during transport (wood pellets emit CO and CO₂ during storage and transport)
Adequate ventilation requirements

Ship size defaults used in METI's GHG calculations:

Handy Size (typically 15,000–35,000 DWT)
Supramax (typically 45,000–60,000 DWT)

10.3 Moisture Control During Transport

Maintaining moisture content ≤10% throughout the supply chain is critical. Exporters should:

Use covered storage at port
Use moisture-resistant packaging or covers during loading
Include moisture content in the Certificate of Analysis at point of export

11. Compliance Checklist Summary

For Indonesian Exporters — Pre-Shipment Checklist

Company-Level (One-Time / Periodic)

[ ] SVLK S-LK Certificate obtained from KAN-accredited LVLK (valid 3 years)
[ ] ETPIK registration as registered forest industry product exporter
[ ] NIB, SIUP, NPWP, Company Registration in order
[ ] FSC/PEFC/SBP CoC certification (strongly recommended for FIT buyers)
[ ] Supply chain traceability system documented

Per-Shipment Documents

[ ] V-Legal Document (valid 4 months, issued per invoice by accredited LPVI)
[ ] Certificate of Origin (Form JIEPA or AJ for preferential tariff)
[ ] Certificate of Analysis (from accredited lab, for relevant quality parameters)
[ ] Shipper's Declaration / IMSBC cargo declaration
[ ] Commercial Invoice
[ ] Packing List
[ ] Bill of Lading
[ ] Phytosanitary Certificate (if required by MAFF)

Sustainability & FIT Compliance (For Buyers in Japan FIT/FIP Program)

[ ] SBP, FSC, PEFC, or RSB Japan FIT scheme certification
[ ] Lifecycle GHG calculation or METI default value documentation
[ ] Species name and harvest area documentation (Revised Clean Wood Act)
[ ] Sustainability criteria compliance (no primary forest clearing, social/labor standards)

For Japanese Buyers (Importers) — Post-April 2025 Revised CWA Requirements

[ ] Collect raw material information from Indonesian supplier (species, harvest area)
[ ] Verify legality documentation (V-Legal Document, FSC/PEFC CoC)
[ ] Conduct risk-based due diligence and document reasoning
[ ] Maintain records for 5 years
[ ] Transfer information to downstream buyers
[ ] Report annually if handling volume exceeds thresholds (30,000 m³ log equivalent for timber)

12. Frequently Asked Questions

Q: Is Indonesia's SVLK/V-Legal certification sufficient for exporting wood pellets to Japan?

A: Yes, SVLK/V-Legal is the mandatory Indonesian export documentation and is recognized under Japan's Revised Clean Wood Act as proof of legal harvest. However, for wood pellets destined for Japan's FIT/FIP biomass power plants, Japanese buyers will typically also require FSC, SBP, or PEFC certification to meet their sustainability obligations to METI.

Q: Do wood pellets from Indonesia require a Phytosanitary Certificate to enter Japan?

A: This depends on the processing method. Wood pellets that have been sufficiently heat-treated during the pelletizing process (typically exceeding 56°C for 30 minutes or the relevant ISPM 15 standard) may not require a phytosanitary certificate. Exporters should confirm with Japan's MAFF and the Indonesian Agricultural Quarantine Agency (BBKP) prior to each shipment.

Q: What sustainability certifications are recognized by Japan's METI for the FIT program?

A: METI recognizes FSC, PEFC, SFI, SBP, and RSB Japan FIT Scheme. The SBP certification was specifically designed for industrial biomass and includes Japan-specific GHG default value calculations. RSB's revised Japan FIT Standard was formally recognized by METI in August 2024.

Q: How has the Revised Clean Wood Act (April 2025) changed requirements for Japanese importers?

A: The Revised Clean Wood Act, in force since April 1, 2025, makes legality due diligence mandatory for Japanese importers. They must now collect species and harvest area information, document their legality checks, maintain records for 5 years, and pass this information to downstream buyers. Indonesian suppliers should proactively provide V-Legal documents, species names, and harvest location data with every shipment.

Q: Can small Indonesian companies export wood pellets to Japan without FSC certification?

A: Yes, SVLK is the mandatory minimum. However, without FSC or SBP certification, access to Japan's FIT-eligible power plant buyers is significantly restricted, as these buyers face METI sustainability reporting requirements. For industrial-scale supply to Japanese biomass power plants, obtaining SBP or FSC CoC certification is strongly advisable.

Q: What is the HS code for wood pellets in Indonesia and Japan?

A: Both countries use HS Code 4401.31 for wood pellets. In Indonesia, this is 4401.31.00; verify the exact 9-digit Japanese tariff line with Japan Customs for applicable rates under JIEPA/AJCEP.

Q: Are there GHG emission limits for wood pellets entering Japan?

A: METI requires FIT/FIP biomass power plants to calculate lifecycle GHG emissions and has published default values. While there is no hard cap per pellet shipment per se, power plants must demonstrate their fuel meets GHG thresholds to maintain FIT/FIP eligibility. The SBP certification covers lifecycle GHG calculation, and METI-published default values can be used for Indonesian-origin wood pellets.

Key Regulatory Bodies & Resources

Body	Role	Website
KLHK (Ministry of Environment and Forestry, Indonesia)	SVLK policy, V-Legal licensing	menlhk.go.id
Ministry of Trade Indonesia	Export licensing, CoO	kemendag.go.id
Japan Forestry Agency (MAFF)	Clean Wood Act, timber import guidance	maff.go.jp
METI	FIT/FIP policy, biomass sustainability	meti.go.jp
Japan Customs	Tariff classification, import procedures	customs.go.jp
SBP	Sustainable Biomass Program certification	sbp-cert.org
FSC	Forest Stewardship Council certification	fsc.org