Palm Oil Firms Deny Role in Indonesia Fires, Cites El-Nino As Culprit

SINGAPORE, Oct 19: Several Singapore-listed palm oil companies have moved to distance themselves from the ongoing forest fires in Indonesia that have triggered the region’s worst transboundary haze episode in more than a decade.

Wilmar International, First Resources, Kencana Agri, Bumitama Agri and Golden Agri-Resources issued statements reaffirming their commitment to zero-burning policies following reports linking plantation activities to the fires.

Most of the companies attributed the severity of the situation to prolonged dry weather associated with El Niño conditions. They said drought had increased the risk of vegetation and peatland combustion, making fire prevention more challenging.

Indonesia Fires

The firms maintained that fires originated outside their concessions before spreading into plantation areas. Wilmar said all land clearing and development activities are conducted mechanically, while several companies highlighted the deployment of dedicated firefighting teams and specialised personnel.

Kencana Agri disclosed that it is cooperating with Indonesian authorities over a preliminary inquiry involving a fire incident at one of its subsidiaries in North Kalimantan.

The statements followed inquiries from Singapore Exchange Regulation (SGX RegCo), which said it is seeking information from plantation operators regarding the impact of the fires, possible contributions to the haze and mitigation measures taken.

Meanwhile, Singapore authorities have issued preventive measure notices to seven companies under the Transboundary Haze Pollution Act as investigations continue.

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