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Olam Group has stated that it faces no direct operational exposure to the recent forest and peatland fires in Indonesia, clarifying that it does not own or operate any oil palm plantations or concessions within the country. This response followed inquiries from the Singapore Exchange Regulation (SGX RegCo) regarding whether the company's activities could be linked to transboundary haze affecting the region.
The mainboard-listed group pointed out that Olam Agri ceased to be a subsidiary in April 2026 following its sale to a Saudi fund. While approximately 70% of Olam Agri’s global palm oil sourcing volume originates from Indonesia, the company functions primarily as an intermediary trader, sourcing products from third-party refineries rather than owning production assets such as mills or plantations.
According to the group, the responsibility for directly preventing or suppressing fires and managing land rests with upstream landowners and plantation operators. Nevertheless, Olam Agri manages upstream environmental risks through rigorous monitoring, supplier engagement, and a responsible sourcing framework.
Olam Group emphasized that it was not aware of any material impact on Olam Agri’s palm oil sourcing operations arising from the recent fires, nor was it aware of any formal regulatory inquiries or notices. As part of its standard monitoring process, the group reviewed fire alerts, stakeholder reports, and media coverage concerning the situation in Indonesia.
Specific mills and corporate groups referenced in external reports have been screened against Olam Agri’s supply chain. While several cases have been clarified by the companies involved, others remain under internal assessment. Ultimately, the group does not expect fire-related matters to have any material operational, financial, legal, regulatory, or reputational impact. Shares of Olam rose 1.1% to $0.91 prior to the announcement.
Source: The Straits Times / The Business Times