Several palm oil companies operating in Indonesia have issued clarifications on forest and peatland fires and the resulting haze, detailing the impact on their plantations, fire prevention measures, and responses to regulatory inquiries.
The disclosures come amid heightened fire activity across parts of Indonesia during prolonged dry conditions associated with the 2026 El Niño event.
Companies have highlighted the challenges of containing fires that can spread across concession boundaries, while outlining their efforts to strengthen monitoring, firefighting and community engagement.
Kencana Agri (SGX:BNE) said fires affected an estimated 62 hectares within concession areas operated by its subsidiaries in North and East Kalimantan, representing less than 0.09% of its total planted area of approximately 67,862 hectares.
Based on preliminary internal assessments, the company said the fires appeared to have spread from adjacent areas. It added that an inquiry into a North Kalimantan incident by authorities remains ongoing, with the company cooperating with investigators.
First Resources (SGX:EB5) and its subsidiary PT Austindo Nusantara Jaya Tbk (IDX:ANJT), acquired in May 2025, confirmed that while fire conditions and localized haze caused operational disruptions due to poor visibility and air quality, they do not expect a material operational or financial impact.
First Resources said many hotspots identified near its West Kalimantan concessions originated outside its operating boundaries, while some fires had spread into areas under its management.
Bumitama Agri (SGX:P8Z) said fires had affected some areas within or adjoining its permits, particularly community-managed and unplanted land.
The company said preliminary investigations and field observations had not established evidence linking its operations to the initiation of the fires under investigation or the haze in question.
It also cited an official record from an Indonesian authority indicating that a fire at one affected concession originated outside the concession before spreading into it.
Indofood Agri Resources (SGX:5JS) said hotspots appeared randomly and on a small scale within its plantation areas, allowing it to address them promptly. The company said the incidents had not materially affected its business activities or continuity.
Across their disclosures, the companies highlighted zero-burning policies, satellite-based hotspot monitoring, ground patrols and dedicated firefighting teams as key elements of their prevention and response strategies.
Several also cited coordination with local authorities and communities, alongside measures to protect conservation areas and manage fire risks during the dry season.
The disclosures reflect the distinction companies are drawing between detecting hotspots within concession boundaries and establishing where a fire originated.
Investigations and operational assessments remain ongoing in some areas, while the companies have said they will continue monitoring conditions and cooperating with relevant authorities.
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