Indonesia Sanctions Six Companies After Kalimantan Forest Fires Burn 1,511 Hectares

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August 25, 2026 | 09:32 am

TEMPO.CO, Jakarta - Indonesia's Ministry of Forestry has imposed sanctions on six companies holding Forest Utilization Business Licenses (PBPH) following monitoring results that revealed that the Kalimantan forest fires started within their managed areas, totaling 1,511.55 hectares.

Ardi Risman, the Ministry's Director of Supervision, Administrative Sanctions, and Civil Forestry Matters, stated in a confirmation from Jakarta on Tuesday that administrative sanctions were issued to four companies in West Kalimantan—PT WEL, PT FI, PT MPK, and PT WSP.

Sanctions were also imposed on PT NES in Central Kalimantan and PT PSR in East Kalimantan.

These sanctions were issued due to recurring forest and land fires within the companies' operational areas. Under these sanctions, the companies are required to improve fire control measures and restore the affected areas.

"Government enforcement measures require the companies to fulfill established obligations, ranging from improving fire control systems to restoring affected areas within a specified timeframe. For PT MPK, we have imposed both the suspension of its business license and a government enforcement order due to the extensive and recurring nature of the fires. We will monitor and evaluate the fulfillment of all these obligations," said Ardi.

He added that if the companies fail to meet these requirements, the sanctions could be escalated in accordance with regulations, potentially leading to the revocation of their business licenses.

Monitoring results showed that the largest burned area was recorded at PT WEL, covering approximately 760.51 hectares. This was followed by 394.83 hectares at PT MPK; 107.7 hectares at PT WSP; 95.87 hectares at PT FI; 82.26 hectares at PT PSR; and 70.38 hectares at PT NES.

The total burned area across these six companies amounted to 1,511.55 hectares. The imposition of sanctions serves as a follow-up measure regarding the oversight of corporate obligations to prevent and control forest and land fires within their operational areas. Companies may also be ordered to undertake vegetation restoration in affected areas.

Specifically for peatlands, restoration obligations entail restoring hydrological functions through water management, canal blocking, peat rewetting, and groundwater level monitoring.

In a similar statement, Dwi Januanto Nugroho, the Director General of Law Enforcement (Gakkum) at the Ministry of Environment and Forestry, noted that holding a business license entails a responsibility to safeguard the area and prevent environmental damage.

Administrative sanctions are employed to rectify non-compliance while compelling corrective actions and restoration. However, enforcement measures may escalate if suspected criminal offenses are detected.

"We use administrative sanctions to compel corrective action, restoration, and compliance; however, if criminal elements are identified, criminal proceedings will ensue. This also serves as a warning to anyone who deliberately sets forest fires or profits from fires and environmental damage. We will investigate and pursue legal action based on the available evidence," stated Dwi Januanto Nugroho.


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