Seven Concession Holders Draw Scrutiny Over Sumatra Fires
Indonesia’s disaster agency mapped fires across 44 forest-conversion and plantation areas in South Sumatra, while Singapore’s environment authority identified seven concession holders as suspected sources of cross-border haze.
SUMATRA, Indonesia — Fires across 44 forest-conversion and plantation areas in South Sumatra have drawn scrutiny from Indonesian and Singaporean authorities, underscoring how land clearing in the region can send haze across national borders. Indonesia’s disaster agency says many fires were found near concession boundaries, while Singapore’s environment authority identified seven companies as suspected sources of haze affecting the city-state.
Kristomei Sianturi, head of Indonesia’s National Disaster Management Agency (BNPB), said the affected areas included oil-palm plantations, industrial timber plantations, forest-management units and protected forests. The concentration of fire hotspots along the edges of land-conversion permits, he said, suggested deliberate land clearing or expansion may have been involved.
Singapore’s National Environment Agency (NEA) identified the seven companies through meteorological data and satellite imagery, according to the information reported. The companies are PT Bumi Andalas Permai, PT Bumi Mekar Hijau, PT Paramitra Mulia Langgeng, PT Sumatera Alam Anugerah, PT Hutan Lestari Raya, PT Bangkanesia and PT SBA Wood Industries. The identification indicates suspected links to cross-border haze; it does not establish that any company started a fire.
BNPB has urged law enforcement to investigate individuals and corporations responsible for burning. “It is pointless for us to work hard if firefighting efforts are not coordinated. One person tries to put the fire out, another sets one, and it flares up again,” Kristomei said in Jakarta on Monday, Oct. 19, as quoted, Indonesia’s state news agency.
Three firms linked to APP supply chain
PT Bumi Andalas Permai, PT Bumi Mekar Hijau and PT SBA Wood Industries are described as long-term exclusive suppliers of pulpwood to Asia Pulp and Paper (APP) Indonesia, part of the Sinar Mas Group. Pulpwood is processed into pulp used to make paper, tissue and cardboard; acacia and eucalyptus are among the species commonly used in Indonesia.
APP’s sustainability dashboard lists the three companies as holding industrial timber plantation concessions in Ogan Komering Ilir district, South Sumatra. It gives the area of Bumi Andalas Permai’s concession as 190,415 hectares, Bumi Mekar Hijau’s as 249,650 hectares and SBA Wood Industries’ as 136,525 hectares. Those figures describe the concessions associated with the suppliers and are not, by themselves, evidence of fire-setting.
PT Paramitra Mulia Langgeng is a subsidiary of the Sungai Budi Group, which owns the Rose Brand label. The company and Sungai Budi executives have previously attracted media attention over a bribery case involving executives of state-owned forestry company PT Inhutani V and permits to manage forest areas in Lampung. The reported case provides background on the business group but does not establish a connection to the fires now under scrutiny.
Concessions in Bangka Belitung also under scrutiny
Public information about the other three companies is limited. PT Sumatera Alam Anugerah holds a concession in Muara Enim, South Sumatra, while PT Hutan Lestari Raya and PT Bangkanesia hold concessions in the Bangka Belitung Islands, off Sumatra’s southeastern coast.
Local media reported in 2023 allegations of foreign control over 20,000 hectares of former PT Bangkanesia concession land. The available information does not detail what happened to those allegations or establish a direct link to the mapped fires.
The reported haze has reached beyond Indonesia, affecting Singapore. The fires also raise concerns about air quality and daily life in affected communities, while testing whether enforcement can prevent new burning after crews bring existing fires under control.
Singapore temporarily restricts APP environmental label
Singapore’s Environment Council (SEC), a nonprofit organization that administers environmental labeling programs, announced on Monday, Oct. 19, a temporary restriction on APP’s Singapore Green Labelling Scheme Plus (SGLS+) certification. The label applies to APP pulp and paper products.
Singaporean outlet Mothership reported that the certification was introduced by SEC in 2017, after the 2015 haze crisis. Its requirements include measures to reduce fire risks on plantations, fire prevention and compliance with a no-burning policy across a company’s supply chain. About 58 pulp and paper products, including printing paper and paper used in hygiene products, had received the certification.
SEC has said the label helps consumers make informed purchasing decisions and support products with stronger environmental credentials. APP products were removed from supermarket shelves in 2015 after SEC suspended the company’s environmental certification amid the haze crisis. The products returned to supermarkets in 2019 after APP obtained SGLS+ certification.
