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Indonesia’s Forest Fires Raise Questions Over Palm Oil and Timber Firms

  Environmental campaigners and government officials are calling for greater accountability from companies operating in Indonesia as widespread forest fires...

 

Environmental campaigners and government officials are calling for greater accountability from companies operating in Indonesia as widespread forest fires continue to cause environmental damage and hazardous haze.

Data from Nusantara Atlas indicates that nearly two million hectares of land have been affected by fires this year. Environmentalists say deforestation and the draining of peatlands for agricultural activities have made many areas more susceptible to burning, while drought and a strong El Niño weather pattern have worsened conditions.

The Indonesian environmental organisation WALHI reported that about half of the high-confidence fire hotspots identified by NASA fell within company concessions. Its analysis identified 40 palm oil and timber concessions in the affected areas.

WALHI representative Umi Ma’rufah said the repeated occurrence of fires raises concerns about the environmental practices of companies operating in these locations.

Singapore has also taken action, issuing preventive notices to 10 companies under its Transboundary Haze Pollution Act. The notices require the firms to strengthen fire prevention measures and submit action plans. Companies that fail to comply could face penalties.

Singapore Senior Minister K. Shanmugam said the fires should not be viewed solely as natural disasters, arguing that corporate activities also contribute to the problem.

Some companies have disputed claims linking them to the fires. First Resources said flames spread into its concession from surrounding areas, while Asia Pulp and Paper maintained that fires occurring on supplier concessions do not automatically establish deliberate burning or prove that concession holders were responsible.

David Gaveau, founder of Nusantara Atlas, explained that satellite imagery can help researchers identify where fires started, but cannot always establish whether they were deliberately set, accidental or spread from neighbouring land.

Environmental lawyer Azam Hawari said fires originating outside a company’s property do not necessarily remove its legal responsibility. He noted that companies are expected to maintain adequate firefighting personnel and equipment, while practices such as draining peatlands could expose them to liability for serious environmental damage.

Indonesia has announced administrative sanctions against dozens of companies, alongside criminal proceedings involving 125 individuals and corporations. However, environmental campaigners argue that enforcement remains inadequate, pointing to companies that have yet to pay fines or restore damaged forests.

Researchers at Singapore Management University, including professor Holly Yang and student Ashmit Bansal, have mapped links between concession owners, lenders, investors and supply chain partners. Yang said identifying these relationships can help investigators and campaigners seek answers, although such connections alone do not prove that a company is responsible for a fire.

Environmental advocates continue to call for stronger enforcement, greater transparency and more effective monitoring to prevent recurring fires and hold responsible parties accountable.

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