SINGAPORE: The Indonesian authorities have started a preliminary inquiry into suspected land-clearing fires in a concession area operated by a subsidiary of Singapore-listed palm oil producer Kencana Agri.
The company disclosed on Oct 16 that investigators had inspected the affected area in North Kalimantan in September, and that the inquiry was ongoing.
Kencana acknowledged that fires had affected approximately 62 ha within concession areas operated by its subsidiaries in North Kalimantan and East Kalimantan, although it maintained that the fires had spread from adjacent land rather than originating from its operations.
The disclosures came in response to queries from Singapore Exchange Regulation over recent forest and peatland fires in Indonesia and the resulting transboundary haze affecting Singapore, Malaysia and Indonesia.
Kencana is among several Singapore-listed plantation and agribusiness companies that have faced scrutiny over fires in Indonesia in recent days, with some acknowledging fires within their concessions but disputing that they had started them.
The company, which has plantations and mills in Sumatra, Kalimantan and Sulawesi, said the affected area was small compared with its total planted area of around 67,862 ha.
It said its firefighting teams had worked with the local authorities and communities to contain the fire, using drones and fire observation towers to identify active fire fronts and to direct ground crews. “The incidents are under control,” it said. — The Straits Times/ANN
