Indonesia revokes five forestry licences over Kalimantan fires as haze persists

Indonesia has revoked the business licences of five forestry companies in Kalimantan as part of enforcement action linked to forest and land fires, with the affected concessions covering a combined 92,464 hectares.

Forestry Minister Raja Juli Antoni announced the revocations on 21 September, saying the companies had violated obligations attached to their forestry concessions. The government said a total of 1,169.13 hectares within the five concession areas had been recorded as burned.

The five companies are PT Wana Lestari Jaya in Sanggau and Sekadau, West Kalimantan; PT Prima Multi Buana in Banjar, South Kalimantan; PT Pancaran Wana Nusa in Lamandau, Central Kalimantan; PT Grace Putri Perdana in Lamandau, Sukamara and Ketapang; and PT Babugus Wahana Lestari in Kapuas, Central Kalimantan.

The Forestry Ministry said the largest burned area was recorded in PT Pancaran Wana Nusa's concession, at 497 hectares. PT Grace Putri Perdana had 374.99 hectares of burned land, followed by PT Babugus Wahana Lestari with 231.10 hectares, PT Wana Lestari Jaya with 47.84 hectares and PT Prima Multi Buana with 18.20 hectares.

Government cites concession obligations

Raja Juli said holders of Perizinan Berusaha Pemanfaatan Hutan (PBPH), Indonesia's forestry business-use permits, have obligations to protect their concession areas and comply with the conditions attached to their licences.

The minister said the revocations were part of law enforcement over violations by the companies. He also said the action was being taken under instructions from President Prabowo Subianto.

The government has not said that the five companies were found to have deliberately started the fires. Its announcement instead refers to violations and failures to fulfil obligations relating to the management and protection of concession areas.

The five concessions vary considerably in size. PT Wana Lestari Jaya holds about 29,140 hectares, PT Prima Multi Buana 11,882 hectares, PT Pancaran Wana Nusa 3,812 hectares, PT Grace Putri Perdana 28,990 hectares and PT Babugus Wahana Lestari 18,640 hectares.

Companies are Indonesian legal entities, with some international corporate links

The five companies are Indonesian PT entities holding forestry concessions in Kalimantan. Available public records do not establish that any of the five is incorporated in Malaysia or Singapore.

There is, however, an international corporate connection involving PT Grace Putri Perdana.

Environmental research organisation AidEnvironment has reported that the company is part of Ciliandry Anky Mandiri and is associated with the Fangiono family, which also operates First Resources and other palm-oil businesses.

First Resources itself is incorporated in Singapore, listed on the Singapore Exchange and has a corporate office in Singapore. The company says its plantation operations are concentrated in Indonesia.

This connection does not mean that PT Grace Putri Perdana is a Singapore-incorporated company. Indonesian forestry records list Grace Putri Perdana as a PBPH concession holder in Central Kalimantan, with a concession area of 28,990 hectares.

Fires continue to affect neighbouring countries

The licence revocations come as smoke from fires in Indonesia continues to create a regional haze concern.

Singapore's National Environment Agency (NEA) said on 21 September that moderate to dense smoke plumes were being observed from fires in Kalimantan and southern Sumatra. It said prevailing winds were expected to continue blowing from the southeast, creating a risk of smoke haze affecting Singapore.

At 6pm on 21 September, Singapore's 24-hour Pollutant Standards Index (PSI) ranged from 66 to 81, in the Moderate range, while one-hour PM2.5 concentrations were between 20 and 33 micrograms per cubic metre. NEA forecast the 24-hour PSI to range from Moderate to Low Unhealthy.

The haze has also affected parts of Malaysia.

In Sarawak, 647 schools across 12 districts were temporarily closed from 7 to 11 September because of haze conditions. The closure affected 563 primary schools with 108,477 pupils and 84 secondary schools with 90,082 students, or 198,559 pupils in total. Home-based teaching and learning was implemented during the closures.

The regional effects cannot, however, be attributed specifically to the five concessions whose licences were revoked. The Indonesian government's announcement identifies the burned areas and enforcement action against the companies, while Singapore's NEA describes smoke plumes from fires in Kalimantan and southern Sumatra more broadly.

The Forestry Ministry's latest action therefore covers five specific forestry concessions, while the wider haze situation remains linked to fires across several parts of Indonesia. Monitoring of fires and smoke movement continues as dry conditions persist in parts of Kalimantan and Sumatra.