Singapore-listed firm Kencana Agri facing inquiry by Indonesian authorities over suspected land clearing by burning

A preliminary inquiry is an initial investigation used to establish what happened and whether further action is justified. It does not by itself prove wrongdoing. Indonesian authorities opened one after a fire occurred at a Kencana Agri subsidiary in North Kalimantan. The suspected issue is land clearing by burning, which is relevant because such fires can contribute to forest fires and transboundary haze.

The affected area lies along the boundary between Kencana Agri’s land and an adjacent third party’s land. Investigators inspected the site in September and requested information from the subsidiary. Kencana Agri said it cooperated fully and that its subsidiary did not clear or prepare land there, based on information then available.

The inquiry remains open. Kencana Agri says it does not use fire for land preparation and enforces a zero-burning policy. Its management also said available information did not show that the group materially contributed to the fires or haze. Authorities will decide what the evidence supports.

Kencana Agri says its preliminary internal assessment indicates that the fire did not originate within the group’s operations. Instead, it says the fire spread from adjacent areas into land operated by its subsidiaries. The company also says its subsidiary did not carry out land clearing or land preparation in the affected area.

The site sits along the boundary between the group’s land and an adjacent third party’s land. That location creates an important question about origin and responsibility. A fire may enter a concession from outside, even if company teams later fight it there. Investigators therefore need to distinguish where the flames began from where damage was recorded.

Kencana Agri says authorities inspected the site in September and requested information. The subsidiary provided it, while the inquiry continues. The company maintains that it follows a zero-burning policy and does not use fire for land preparation. The boundary evidence could affect any eventual finding.

Kencana Agri reported fire incidents within concession areas operated by subsidiaries in North and East Kalimantan. The affected area was estimated at 62 hectares. The company’s total planted area was about 67,862 hectares across plantations and mills in Sumatra, Kalimantan and Sulawesi.

In proportional terms, the affected land was less than 0.09 per cent of the group’s total planted area. This comparison shows that the fires covered a small share of the company’s operations. However, the location and possible connection to forest and peatland fires still matter because smoke can contribute to wider transboundary haze.

Kencana Agri says the incidents are under control and are being monitored. Its firefighting teams worked with authorities and local communities. Drones and fire observation towers helped locate active fire fronts and direct ground crews. The company continues heightened prevention and monitoring during dry-season conditions while the inquiry proceeds.

Forest and peatland fires produce smoke that can worsen air quality and affect public health, especially for people with breathing or heart conditions. When haze crosses borders, neighboring countries may face disruption, public concern, and pressure to identify its source. The article links the recent fires to worsening haze and says Singapore is examining which companies may be responsible.

Companies can face official inquiries, requests for information, reputational damage, and possible legal action. Kencana Agri is already responding to an Indonesian preliminary inquiry. Singapore’s Prime Minister Lawrence Wong said the country could act under its Transboundary Haze Pollution Act and explore joint action with other countries.

The immediate response includes firefighting, monitoring, and prevention. Kencana Agri says the affected incidents are under control, but the inquiry continues. Other SGX-listed firms, including Golden Agri-Resources and Wilmar International, emphasized their zero-burning or no-burning policies. Responsibility will depend on evidence about each fire’s origin and contribution.

Plantation companies manage their estates, prevent fires, investigate incidents, provide information, and cooperate with authorities. Kencana Agri says its subsidiaries’ firefighting teams worked with Indonesian authorities and local communities. The company also used drones, observation towers, monitoring, and emergency response procedures to control and track the fires.

Indonesian authorities inspect affected areas and conduct inquiries into suspected burning. They may determine whether a fire began inside a concession or spread from elsewhere. Singapore is examining which companies may be responsible for the fires and haze. The country may use its Transboundary Haze Pollution Act and explore joint action with other countries.

The Singapore Exchange Regulation, or SGX RegCo, questioned listed companies about the fires and haze. Companies including Kencana Agri, Golden Agri-Resources, and Wilmar International responded through filings. Local communities also helped fight the fires. Responsibility remains unsettled while investigations and monitoring continue.

To determine whether a fire began inside a concession, investigators first map the earliest known burn area against official land boundaries. They can compare satellite images taken before, during, and after the incident. Fire direction, burn scars, wind, terrain, and the condition of vegetation can also indicate where flames started and how they moved.

Investigators may combine those findings with field inspections, firefighting logs, drone footage, tower observations, company records, and interviews with workers or nearby communities. In this case, the article says authorities inspected the affected area in September. Kencana Agri says its teams used drones and fire observation towers to locate active fronts and direct crews.

The article does not describe a final forensic conclusion. Kencana Agri’s internal assessment says the fire spread from adjacent areas, while the official inquiry remains ongoing. Investigators therefore still need to test that account against physical evidence and information from the neighboring land.

Forest fires create smoke from burning vegetation. Peatlands can produce especially persistent smoke because organic material beneath the surface may continue smoldering. Winds can carry those particles across national borders, creating transboundary haze. The article connects recent forest and peatland fires in Indonesia with worsening haze in Singapore and surrounding countries.

Land clearing by burning is often used because it can remove vegetation quickly and cheaply, especially across large areas. However, it can escape control, damage forests and peatlands, and produce smoke that affects distant communities. The article does not establish that Kencana Agri used burning. Instead, Indonesian authorities are investigating suspected burning near its subsidiary’s boundary.

Kencana Agri says it has a zero-burning policy and does not use fire for land preparation. Golden Agri-Resources and Wilmar International also report strict no-burning policies. The fires remain under investigation, while companies and authorities maintain prevention, detection, firefighting, and monitoring measures.