Singapore-listed palm oil producer Kencana Agri faces inquiry by Indonesia govt over suspected land burning

Indonesian authorities are probing a fire at Kencana Agri's subsidiary in North Kalimantan, suspected to be caused by land clearing through burning. Kencana Agri reported fires affecting approximately 62 hectares across concession areas in North and East Kalimantan, which make up less than 0.09 percent of the company's total planted area of around 67,862 hectares.

Singapore will issue preventive measure notices to seven Indonesian companies, requiring firefighting actions, cessation of burning, and development of plans to prevent future fires. The government's move follows Singapore's increased efforts to identify companies responsible for fires in the region. Kencana Agri stated the inquiry concerns a fire near the boundary between its subsidiary's land and an adjacent third party's property in North Kalimantan, adding that its subsidiary hadn't cleared or prepared land by burning in the affected area.

Inspectors visited the site in September, and the subsidiary provided requested information. The investigation is ongoing, and Kencana Agri has pledged to cooperate with investigators. Other palm oil firms, including Golden Agri-Resources, Wilmar International, PT Salim Ivomas Pratama and First Resources, have defended their fire policies, stating that their operations did not contribute to the recent haze.