This study examines food consumption patterns in Indonesia across urban, rural, and forested areas with varying levels of tree cover loss (TCL). Using household food consumption data from the National Socio-economic Survey in 2008 and 2017, and data from the Global Forest Watch website, we identify differences in food consumption patterns in urban, rural, and forested areas with high and low TCL. The results indicate a dietary transition is occurring in Indonesia, characterized by increased consumption of wheat, chicken, fish, sugar-sweetened beverages, processed, ultra-processed, and ready-to-eat foods, and a decline in the consumption of green leafy vegetables and fresh legumes across all area categories. Diet quality is declining in all area categories, however, urban areas showed the most accelerated decline, with declining dietary diversity, decreasing consumption of healthy foods, while increasing consumption of less healthy foods and the highest consumption of ultra-processed foods. Furthermore, foods consumed more in urban (vs. rural) and high-TCL (vs. low-TCL) areas, such as wheat, broiler chicken, dairy, and packaged foods, are associated with modern diets and sourced from farther away, indicating accelerated modernization and delocalization of diets. Conversely, foods consumed more in rural and low-TCL areas, such as traditional staple foods, free-range eggs, and dark green leafy vegetables, are considered more locally sourced and traditional. We conclude that dietary transitions occur across all regions, but the modernization of diets is more accelerated in urban and high-TCL areas. Given the mixed health consequences of modern diets, policies should anticipate negative impacts while preserving positive aspects.