Five Companies Sanctioned for Kalimantan Forest Fires, One Licence Suspended
The Ministry of Forestry has imposed administrative sanctions on six companies holding Forest Utilisation Business Permits (PBPH) after forest and land fires were detected across 1,511.55 hectares in West Kalimantan, Central Kalimantan, and East Kalimantan. Five companies were subjected to Government Enforcement Orders, while PT MPK received a heavier sanction in the form of Business Licence Suspension alongside a Government Enforcement Order, as the fires in its area were deemed extensive and recurrent.
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. Based on monitoring results, PT WEL recorded the largest burned area at approximately 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.
Director General of Forestry Law Enforcement Dwi Januanto Nugroho stated that every business permit in forest areas carries an obligation to protect the area and prevent damage. “Business permits grant the right to manage forest areas, but they carry an inherent obligation to protect and prevent damage. We use administrative sanctions to compel improvement, restoration, and compliance. However, when criminal elements are found, the criminal process continues,” Januanto said in a statement quoted on Tuesday (25/8/2026).
“This is also a warning to anyone who deliberately burns forests or profits from fires and damage to forest areas. We will investigate and proceed based on evidence,” he added.
The sanctions require the companies to improve their fire control systems and restore affected areas. Inspections covered the readiness of firefighting teams, equipment, water sources, watchtowers, canal blocks, and early detection and response systems. For peatland areas specifically, restoration includes improving hydrological functions through water management, canal blocking, rewetting of peat, and monitoring of groundwater levels.
Januanto stressed that forest fire management is not only about damage to company areas but also has direct impacts on communities and economic activity. “Forest fires are not just about how many hectares burned. There are people whose health is disrupted, children whose learning activities may be affected, flights and transport can be disrupted, economic activity is depressed, and the state must deploy significant resources to control the fires,” he said.
“No party should profit while the public and the state bear the consequences. Law enforcement must protect affected communities, safeguard public interests and facilities, while ensuring state law is upheld and responsible parties face the consequences of their actions,” Januanto continued.
Meanwhile, Director of Forestry Supervision, Administrative Sanctions, and Civil Affairs Ardi Risman said obligations under the Government Enforcement Orders will continue to be monitored and evaluated. “Government Enforcement Orders impose consequences on companies to fulfil established obligations, from improving fire control systems to restoring affected areas within specified time limits. For PT MPK, we imposed Business Licence Suspension alongside a Government Enforcement Order because the fires occurred extensively and repeatedly. The implementation of all these obligations will be monitored and evaluated. If they are not fulfilled, sanctions can be escalated in accordance with regulations, up to and including revocation of the business permit,” Ardi said.
The Ministry of Forestry affirmed that monitoring will continue, especially during fire-prone periods. If criminal elements or recoverable losses are found, the government is open to using criminal, administrative, or civil instruments.