Singapore-listed firm faces Indonesia's probe over suspected land clearing by burning amid haze
Kencana Agri is among several Singapore-listed firms that have responded to SGX Regco's queries.
Indonesian authorities have launched a preliminary investigation into potential land-clearing fires in a concession area managed by Kencana Agri, a Singapore-listed palm oil producer. Kencana disclosed on October 16 that investigators had inspected the affected region in North Kalimantan in September, and the inquiry was still ongoing.
The company admitted that fires had impacted around 62 hectares within concession areas operated by its subsidiaries in North and East Kalimantan, despite claiming the fires had spread from adjacent land rather than originating from its operations. Kencana is among several Singapore-listed plantation and agribusiness firms facing scrutiny over fires in Indonesia, with some acknowledging fires within their concessions but denying their involvement.
The company, which operates plantations and mills in Sumatra, Kalimantan, and Sulawesi, stated that the affected area was minuscule compared to its total planted area of approximately 67,862 hectares. Its firefighting teams collaborated with local authorities and communities to contain the fire, utilizing drones and fire observation towers to pinpoint active fire fronts and guide ground crews.
Kencana noted that the incidents were under control, with ongoing monitoring and precautionary response measures in place.
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