Indonesia sanctions six companies after fires burn 1,511 hectares in Kalimantan

Indonesia’s Ministry of Forestry has imposed administrative sanctions on six companies holding Forest Utilisation Business Licences (PBPH) after fires were found across a combined 1,511.55 hectares of their managed areas in Kalimantan.

The companies are located in West Kalimantan, Central Kalimantan and East Kalimantan.

Five were subjected to Government Compulsion, requiring them to undertake corrective measures, while PT Mohairson Pawan Khatulistiwa (MPK) received a business licence suspension as well as Government Compulsion because fires in its concession were considered extensive and recurrent.

Six companies and the areas affected

The largest burned area was recorded in the concession of PT Wanakerta Ekalestari (WEL) in West Kalimantan, where 760.51 hectares were affected.

PT MPK, also in West Kalimantan, recorded 394.83 hectares, followed by PT Wana Subur Persada (WSP) with 107.70 hectares and PT Finnantara Intiga (FI) with 95.87 hectares.

PT Putra Sungai Rayo (PSR) in East Kalimantan recorded 82.26 hectares, while PT NES in Central Kalimantan recorded 70.38 hectares. Together, the six areas accounted for 1,511.55 hectares of burned land.

The four companies in West Kalimantan — PT WEL, PT FI, PT MPK and PT WSP — were inspected by the Kalimantan Regional Forestry Law Enforcement Office from 10 to 14 August 2026.

Enforcement measures against PT NES and PT PSR were handled by the Ministry of Forestry’s Directorate of Forestry Oversight, Administrative Sanctions and Civil Affairs.

None of the six companies sanctioned by Indonesia's Forestry Ministry has been publicly identified as a Malaysian or Singaporean company.

One, PT Finnantara Intiga, is part of the Sinar Mas/Asia Pulp & Paper corporate network, which has an international ownership structure.

Companies ordered to improve fire controls

The Government Compulsion sanctions require the companies to improve their fire prevention and control systems and restore areas affected by the fires.

Measures can include improving firefighting preparedness, ensuring adequate equipment and water supplies, strengthening early detection and response systems, and restoring vegetation in affected areas.

For peatland areas, restoration requirements include improving hydrological functions through water management, canal blocking, rewetting and monitoring groundwater levels.

Ardi Risman, Director of Forestry Oversight, Administrative Sanctions and Civil Affairs, said the companies would be monitored to ensure they fulfilled the obligations within the specified time limits.

He said sanctions could be increased if companies failed to comply, including the possibility of business licence revocation.

Director-General of Forestry Law Enforcement Dwi Januanto Nugroho said business licences gave companies the right to manage forest areas but also imposed responsibilities to protect those areas and prevent damage.

He said administrative sanctions were being used to require improvements, restoration and compliance, while criminal proceedings could continue if evidence of criminal activity was found.

Ministry says 42 companies linked to fires in Kalimantan

Separately, Environment Minister Mohammad Jumhur Hidayat said the government had identified around 42 companies in Kalimantan that were allegedly involved in the emergence of forest and land fires.

Jumhur made the statement after inspecting fire-control operations in Banjarbaru, South Kalimantan, on 24 August.

He said several of the companies had shown strong indications of violations, while the data was still being updated. Similar information on companies suspected of involvement in fires in Sumatra was also being compiled.

The minister said suspected violations could involve both individuals and corporations. Criminal allegations would be handled in coordination with the police, while fines and administrative sanctions against companies fall within the Ministry of Environment’s authority.

Jumhur said penalties would not necessarily be limited to fines. The government would also calculate state losses and the costs of restoring environmental damage caused by fires.

In a separate report, Antara said the government was pursuing legal action against about 30 companies over forest and land fires in 2026, with claims for state losses and environmental restoration costs potentially reaching nearly Rp15 trillion (about US$848 million).

Investigations continue across Kalimantan

The sanctions against the six forestry companies come as authorities continue investigating suspected corporate involvement in fires elsewhere in Kalimantan.

In South Kalimantan, the Ministry of Environment said it was investigating 11 companies after satellite hotspot data was found to overlap with concession areas.

Officials stressed that satellite data alone was not definitive evidence of illegal burning and that field inspections were required to establish whether the hotspots represented actual fires or heat generated by legitimate industrial activities.

The wider enforcement operation is taking place as Indonesia battles extensive forest and peatland fires amid a strong El Niño pattern and prolonged dry conditions.

The fires have also generated haze that has spread across national borders into neighbouring Malaysia and Brunei.

The Ministry of Forestry has urged all concession holders to make fire prevention part of routine forest management, particularly during periods of heightened fire risk.