First Resources blames El Nino, outside fires for Kalimantan hotspots amid haze scrutiny
The palm oil producer says satellite identification of hotspots does not indicate responsibility or fault
[SINGAPORE] Fires detected within First Resources’ Indonesian palm oil concessions were largely caused by external blazes spreading across its boundaries, said the Singapore-listed palm oil producer on Thursday (Oct 15).
The response follows a Straits Times report citing a recent Greenpeace investigation, which named First Resources and Bumitama Agri among entities with concession areas registering haze source points.
In a regulatory filing, the company attributed the elevated fire risk in West Kalimantan to a “severe” El Nino-induced drought. The extreme weather caused small-scale traditional land clearing by local communities to escalate into uncontrolled wildfires, the company said.
First Resources added that satellite identification of hotspots does not establish a company’s responsibility or prove the deliberate use of fire for land clearing.
“The presence of hotspots within a concession should not, in itself, be interpreted as an indication that the concession holder caused, initiated or condoned a fire,” the company said.
A concession is land that a company has been granted the right to use or develop, with the concession holder being responsible for management of the land.
The company stated that its investigations showed many hotspots were outside its operating boundaries.
However, it acknowledged that some “massive and fast-spreading” fires originating externally had encroached onto its managed areas despite the efforts of its on-site firefighting teams.
Defending its land management practices, First Resources pointed to its “strict Zero Burning Policy” and an “Integrated Fire Management” initiative that includes daily satellite tracking and drone surveillance. The company also noted that it had distributed 17 water pump units to affected villages and thousands of masks to local education offices.
The transboundary haze remains a perennial flashpoint in South-east Asia, with residents in West Kalimantan having launched a class-action lawsuit against the Indonesian government for alleged negligence over the recurring fires.
Singapore is looking into which companies may be responsible for haze-causing fires, said Prime Minister Lawrence Wong in a Facebook post on Thursday.
Where warranted, Singapore will take action under its Transboundary Haze Pollution Act, and also explore joint action with other countries, he added.
