Despite Forest Fires, Haji Isam-Owned Issuer PGUN Continues Operations
Jakarta, CNBC Indonesia — Haji Isam-owned issuer PT Pradiksi Gunatama Tbk (PGUN) has commented on the continuity of its business following forest and land fires near its concession area. Management said the fires had not affected PGUN’s operations.
According to a disclosure to the Indonesia Stock Exchange (IDX), harvesting and processing activities at the palm oil mill (PKS) continue as normal.
“Forest and land fires around the concession area have not halted the Company’s main operations. Harvesting and processing at the palm oil mill continue as normal,” management said on Wednesday (14 October 2026).
Management explained that all plantation and palm oil processing operations are concentrated in one area, Paser Regency, East Kalimantan, including several subdistricts such as Batu Engau. The area is managed directly by the company.
The concession and palm oil mill in Paser Regency account for 100% of the company’s crude palm oil (CPO) and palm kernel (PK) production, as well as all its revenue. All CPO output is allocated to meet the needs of its affiliate, PT Jhonlin Agro Raya Tbk, for fatty acid methyl ester (FAME).
The company said the direct financial impact was relatively contained and immaterial to its overall revenue and net profit. Biological assets, including oil palm trees, and fixed assets such as mills, heavy equipment and infrastructure were said to be well protected, with no material damage requiring large-scale asset write-offs.
The company also confirmed there had been no unplanned shutdown at the palm oil mill or closure of plantation operations as a result of the fires.
To mitigate the risk, the company has adopted short- and long-term strategies. In the short term, it has established a forest and land fire task force with patrol and firefighting teams, monitored hotspots in real time using satellites and conducted daily ground patrols. It has also prepared portable water pumps, water trucks and heavy equipment, alongside reservoirs, canals and dams as water reserves.
The company has also established standard operating procedures for responding to fires, aiming for teams to reach a fire site within 15–30 minutes of receiving a report. Measures include creating firebreaks to prevent the spread of flames and maintaining communication with the Regional Disaster Management Agency (BPBD), the Indonesian National Armed Forces (TNI), the National Police (Polri) and the Forestry Office.
In the longer term, the company is operating a water-management system to maintain groundwater and canal levels and keep the land moist. It has adopted a zero-burning policy across its operations and subsidiaries, and is supporting Fire-Free Communities (Masyarakat Bebas Api, or MBA) through joint prevention programmes and education on fire hazards in villages near the concession.
Management added that the company is not facing, and is not at risk of facing, severe administrative sanctions such as land sealing or revocation of its business licence, or civil and criminal lawsuits related to the fires.