Indonesian ex-minister criticises Singapore over notices to Indonesian companies; Shanmugam says action will continue

SINGAPORE: Former Indonesian Trade Minister Muhammad Lutfi’s six-minute Oct 19 Instagram video criticising Singapore’s response to this year’s severe cross-boundary haze received a lot of attention this week. 

While Mr Lutfi may have raised a legitimate issue regarding corporate accountability, he also made some unsubstantiated claims and even accusations. Moreover, netizens both in Singapore and Indonesia have responded to the video to say that Indonesian authorities need to be doing more to hold Indonesian companies accountable for the forest and peat fires that caused the haze.

What he said in the video

Mr Lutfi made the video in response to Minister for Sustainability and the Environment Grace Fu announcing on Oct 16 that preventive notices would be issued to seven Indonesian companies whose concessions were linked by the  National Environment Agency (NEA) to fires that have reached Singapore. Since then, similar notices have been issued to three more companies.

The former Minister said that Singapore should not just send notices. If the Government believes companies linked to Singapore are responsible, then it should investigate and prosecute the corporations based in Singapore behind them.

Moreover, he claimed that the Government was merely making a show of action in order to appease voters, and that Singapore profits from some of the companies, though he failed to show any evidence of this.

He also pointed out that four of the initial seven companies have links to Singapore. However, none of these firms is Singapore-listed companies.

Perhaps one of Mr Lutfi’s most glaring errors was his claim that “Singapore has no jurisdiction in Indonesia.” 

The Transboundary Haze Pollution Act 2014 was passed to specifically deal with this problem, allowing the city-state to issue preventive measures concerning fires outside its borders where the smoke is likely to move towards Singapore and seek information from people or entities overseas.

And Singapore is prepared to do exactly that.

On Monday afternoon (Oct 19), Senior Minister and Coordinating Minister for National Security & Minister for Home Affairs K Shanmugam emphasised the Government’s position to take robust measures against these firms and even others.

Speaking to journalists during a visit to Woodlands Checkpoint, he said, “They may think that it is hard to get evidence, and that they may think that they can escape scrutiny. But they should not underestimate the Singapore government's determination to act.”

The companies, he added, “cannot play hide and seek,” and Singapore is ready to exert pressure “on their bottom lines, including on their access to financing, and including on their standing with investors.”

As for its present laws, Singapore is also ready to amend them or even introduce new laws as needed, he added, saying that the matter will be pursued as long as it takes. /TISG

Read also: Singaporeans urge PM Wong to do more after he announces probe into companies behind haze