Indonesia Sanctions Six Companies Over Forest Fires, Freezes One Permit

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Ecobiz.asia – Indonesia’s Ministry of Forestry has imposed administrative sanctions on six forest concession holders after inspections found forest and land fires across a combined 1,511.55 hectares in West Kalimantan, Central Kalimantan and East Kalimantan.

Five companies were ordered to comply with government enforcement measures, while PT MPK was hit with both a business permit suspension and government enforcement order after fires on its concession were found to be extensive and recurrent.

Director General of Forestry Law Enforcement Dwi Januanto Nugroho said the sanctions were intended to address corporate non-compliance and compel concession holders to improve fire prevention and restore affected areas.

“Business permits give companies the right to manage forest areas, but they also carry an obligation to protect them and prevent damage,” Dwi said in a statement in Jakarta on Tuesday (Aug. 25, 2026). “Administrative sanctions are used to compel improvement, restoration and compliance. But where criminal elements are found, criminal proceedings will continue.”

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The six companies are PT WEL, PT FI, PT MPK and PT WSP in West Kalimantan; PT NES in Central Kalimantan; and PT PSR in East Kalimantan.

PT WEL recorded the largest burned area at 760.51 hectares, followed by PT MPK at 394.83 hectares, PT WSP at 107.70 hectares, PT FI at 95.87 hectares, PT PSR at 82.26 hectares and PT NES at 70.38 hectares.

The ministry has ordered the companies to improve their forest and land fire prevention systems and restore affected areas.

The required measures include ensuring the readiness of fire-control teams, firefighting equipment and water sources, as well as maintaining fire-monitoring towers, canal blocking infrastructure and early detection and response systems.

Companies may also be required to restore vegetation in affected areas. In peatland ecosystems, restoration includes improving hydrological functions through water management, canal blocking, peatland rewetting and monitoring of groundwater levels.

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Dwi said law enforcement would continue where investigations identify suspected criminal violations related to forest and land fires.

He stressed that the impact of forest and land fires extends beyond the burned areas, potentially affecting public health, education, aviation, transportation and economic activity.

“No party should profit while the public and the state bear the consequences,” Dwi said, adding that law enforcement must protect affected communities and public interests while ensuring compliance with national law.

Ardi Risman, Director of Forestry Oversight, Administrative Sanctions and Civil Enforcement, said the implementation of the government enforcement orders would be subject to continued evaluation. Companies must fulfill all obligations within specified deadlines.

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For PT MPK, the permit suspension was imposed alongside the government enforcement order because fires occurred over a large area and repeatedly.

“If the requirements are not fulfilled, sanctions can be escalated in accordance with the regulations, including the revocation of the business permit,” Ardi said.

Four companies in West Kalimantan were previously inspected by the Kalimantan Regional Forestry Law Enforcement Office on Aug. 10–14, 2026. Enforcement against PT NES and PT PSR was handled by the Directorate of Forestry Oversight, Administrative Sanctions and Civil Enforcement.

The Ministry of Forestry has urged all concession holders to make fire prevention an integral part of forest management, particularly during periods of elevated fire risk.

The government said criminal, administrative and civil enforcement measures remain available where violations or losses meeting the relevant legal requirements are identified. ***

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