Kencana Agri face inquiries over Indonesian forest fires
On 16 Oct, plantation company Kencana Agri released a public statement in response to the Singapore Exchange Regulation’s inquiries.
Listed on the Singapore Exchange since 2008, the corporation owns plantations in the Sumatra, Kalimantan, and Sulawesi regions of Indonesia.
This accounts for a total planted area of approximately 67,862 hectares.
The inquiry follows investigations opened by the Indonesian authorities regarding the recent land and forest fires in Indonesia, contributing to the subsequent transboundary haze.
Corporation releases report
According to the corporation’s report, incidents were recorded in concession areas operated by its North and East Kalimantan subsidiaries.
They occurred on the border of land owned by the corporation and land belonging to an adjacent third party.
This affected approximately 62 hectares of land, or under 0.09% of Kencana Agri’s total planted area.
The group’s preliminary internal assessments indicated that the fire spread from adjacent areas, rather than originating from the producer’s operations.
The release stated that the subsidiary did not carry out land clearing or land preparation in the affected area, to the best of the corporation’s knowledge.
In Sept 2026, investigators conducted a field inspection of the affected area.
Kencana Agri maintained that the subsidiary is continuing to provide information and cooperate with the Indonesian investigators.
Source: Earth.org
Kencana Agri emphasises policies, investigations remain ongoing
In the press release, Vice Chairman and Executive Director Ratna Maknawi continued to emphasise Kencana Agri’s staunch zero-burn policies.
She said: “The Group maintains adequate fire prevention, detection and emergency response protocols and controls across its Indonesian plantation operations.”
These measures are intended both to minimise the risk of fires within the Group’s operational areas and to facilitate a prompt response where fires originating from surrounding areas threaten to spread into its estates.
In an article by Jawawa, the company claimed that it had not received any other investigation notices, allegations, or requests for information regarding the fires from the media or government.
Maknawi stated that they did not expect the investigation to leave an “operational, financial, legal, regulatory or reputational impact” on Kencana Agri.
As the inquiry by the relevant authorities is ongoing, Kencana Agri pledged to monitor its operations, assess the effect of the dry weather conditions and take preventive measures.
Further updates regarding the investigations are forthcoming.
Source: The Sun
Grace Fu and Lawrence Wong on taking action against corporations
On 5 Oct, a report from Greenpeace identified 20 Singapore-originated companies connected to the Indonesia fires.
Among those listed were locally affiliated companies such as PT Damai Agro Sejahtera, PT Kayung Agro Lestari, and PT Arjuna Utama Sawit.
Prime Minister Lawrence Wong posted a Facebook update on 15 Oct saying that the government was investigating which companies were potentially responsible for the fires.
Where warranted, we will take action under Singapore’s Transboundary Haze Pollution Act (THPA) and also explore joint action with other countries.
Source: Facebook
At a press conference on 16 Oct, Minister for Sustainability and the Environment Grace Fu stated that the National Environment Agency (NEA) has issued Preventive Measure Notices (PMNs) to seven companies located in Sumatra. This required the companies to stop the recurrence of haze-causing fires.
The companies are:
- PT Bumi Andalas Permai
- PT Bumi Mekar Hijau
- PT Paramitra Mulia Langgeng
- PT Sumatera Alam Anugerah
- PT SBA Wood Industries
- PT Hutan Lestari Raya
- PT Bangkanesia
As of Monday (19 Oct), NEA has issued PMNs to another three companies located in Kalimantan:
- PT Buana Megatama Jaya
- PT Mananjung Hayak
- PT Baratama Putra Perkasa
They would also consider other measures under the THPA, if they found evidence that the companies caused the fires contributing to the transboundary haze.
In the meantime, NEA will continue to monitor the evolving situation and the companies’ responses.
We will also draw on lessons from past cases as we assess the current haze episodes and consider what further action may be warranted under the THPA.
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Featured image adapted from Open Kerja and Free Malaysia Today.