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Kencana Agri, a palm oil producer listed on the Singapore Exchange, is facing an official inquiry from the Indonesian government regarding suspected land clearing by burning in North Kalimantan. The investigation aligns with Singapore's intensified efforts to hold companies accountable for forest fires contributing to regional transboundary haze.
Kencana Agri disclosed the preliminary inquiry following questions from Singapore Exchange Regulation (SGX RegCo). The company stated that the investigation focuses on a fire that occurred near the boundary of its subsidiary’s land and an adjacent property. According to the firm, the subsidiary had not engaged in land clearing or preparation through burning in the affected area. Investigators inspected the site in September, and the company has been cooperating by providing requested information.
Internal records indicate that fires within concession areas in North and East Kalimantan affected approximately 62 hectares. This area represents less than 0.09 per cent of the group's total planted estate of 67,862 hectares. Kencana Agri’s preliminary assessment suggests that the fires likely spread from neighbouring lands. The company’s firefighting units collaborated with local authorities and communities to contain the blazes, utilizing drones and observation towers for detection.
Singapore’s Prime Minister Lawrence Wong recently highlighted that the nation is investigating firms responsible for forest and peatland fires, noting that actions could be taken under the Transboundary Haze Pollution Act. Minister for Sustainability and the Environment Grace Fu further announced that preventive measure notices would be issued to seven Indonesian companies. These notices mandate the deployment of firefighting teams and the submission of rigorous action plans to prevent future incidents.
Several other palm oil majors have issued statements regarding the situation. Wilmar International and Golden Agri-Resources reaffirmed their long-standing zero-burning policies, with Wilmar noting that all replanting since 2013 has been conducted mechanically. PT Salim Ivomas Pratama, a subsidiary of Indofood, also highlighted its use of satellite data for fire detection. Conversely, a Greenpeace report published on Oct 5 linked First Resources and Bumitama Agri to concessions contributing to the haze, though both companies have stated that some fires originated outside their managed areas.
Source: The Independent Singapore