Indonesia’s forest fires linked to 21 Malaysian-affiliated companies, NGO alleges

MALAYSIA/INDONESIA: An Indonesian environmental group has linked 21 Malaysian-affiliated companies to forest and land fires, raising questions about corporate oversight and responsibility for recurring haze.

Wahana Lingkungan Hidup Indonesia (WALHI) made the allegation in a report released in Kuala Lumpur. Its analysis recorded 30,927 fire hotspots across Indonesia between January and September.

Nearly half were within oil palm plantations and forestry concessions, where companies hold rights to use the land, New Straits Times (NST) reported (Oct 26).

Kalimantan records thousands of hotspots

West Kalimantan recorded 9,529 hotspots, while Central Kalimantan had 7,141. Air pollution in affected areas reached unhealthy to hazardous levels, according to the report.

WALHI also found that some high-risk concessions were linked to business groups with ties to Singapore, Hong Kong and offshore tax havens. The findings point to a corporate ownership network that extends beyond Indonesia’s borders.

The allegations come after Greenpeace Indonesia and Pantau Gambut identified 20 entities linked to forest fires in a separate report dated Oct 5. Their dataset covered haze sources from Aug 1 to Oct 1 and included companies from Malaysia and Singapore.

WALHI said some Indonesian entities had also appeared in a 2019 report on fires affecting land they owned. It urged authorities to review permits, restrict operations, suspend activity or revoke concessions held by repeat offenders.

However, Malaysian government spokesman Datuk Seri Fahmi Fadzil said on Oct 16 that checks had found no Malaysian plantation companies with Indonesian oil palm concessions involved in haze-linked fires. Most observed fires, he said, were outside Malaysian firms’ concessions.

Corporate oversight is important beyond national borders

The competing accounts show why the location of a fire and the ownership of nearby land are important. Satellite hotspots can guide checks, but the allegations still need to be assessed against company records and concession boundaries.

Indonesia’s authorities can investigate the named firms and act where evidence supports penalties. For neighbouring countries, including Singapore, reliable findings and firm enforcement are important because smoke from land fires can cross borders. Claims should be tested with evidence, not treated as proof of guilt.