Indonesia warns concession holders: Fire prevention failures face sanctions

Indonesia's Ministry of Environment and Forestry (KLH) has issued a stern warning to all concession holders, urging them to bolster efforts in preventing forest and land fires (karhutla) as the dry season approaches. With the El Niño phenomenon expected to exacerbate drought conditions in 2026, the government is emphasizing that companies found negligent in fire prevention within their operational areas could face severe penalties.

Minister of Environment and Forestry, Moh Jumhur Hidayat, stated that the government convened a working meeting on preventing and anticipating forest and land fires in peatland ecosystems. This initiative is part of a national action plan to address the heightened risk of karhutla during the dry season. The meeting included nearly 400 concession-holding companies managing millions of hectares of plantation and industrial land. The government's directive is clear: companies must ensure no fires occur within their concessions and proactively prevent any potential fire outbreaks.

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Fires must not occur within concession areas, and all points that have the potential to develop into fires must be prevented from the outset.

"Fires must not occur within concession areas, and all points that have the potential to develop into fires must be prevented from the outset," Jumhur said in a press release on Saturday (July 11, 2026). He also noted Indonesia's participation in an ASEAN ministerial meeting in Bali the previous day, which focused on collaborative efforts to prevent forest fires and address potential coastal fires. These regional discussions aim to counter the threat of transboundary haze and prolonged drought.

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Uncontrolled drainage causes groundwater levels to drop and makes peat dry, making it more flammable. Therefore, the construction of canal barriers and water management must be a priority for companies.

A primary strategy promoted by the government is the re-wetting of peatlands by maintaining groundwater levels. This is to be achieved through controlled canal systems that prevent rapid water outflow, thereby preserving soil moisture throughout the dry season. Jumhur explained that uncontrolled drainage lowers groundwater levels, drying out peatlands and making them more susceptible to fire. Consequently, the construction of canal barriers and effective water management are designated priorities for companies.

Beyond their own concession areas, companies are also required to cooperate with local communities and regional governments to implement land-wetting measures within a five-kilometer radius. This collaborative approach is deemed crucial, as hydrological systems and fire spread do not recognize administrative boundaries. Jumhur estimates that over 20,000 canal management and re-wetting activities will be necessary during the El Niño period to maintain peatland ecosystem moisture. He reiterated that companies proven negligent, leading to fires, will face significant sanctions, including administrative penalties, compensation claims, environmental restoration orders, and potentially criminal prosecution.

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Companies that are proven negligent and cause fires can face severe sanctions. In addition to administrative sanctions, companies also face potential claims for damages, environmental restoration obligations, and criminal proceedings according to applicable regulations.