Singapore-listed First Resources, Bumitama Agri point to El Nino, say some fires began beyond their boundaries
Palm oil producer First Resources said the current hotspots are largely concentrated in regions where the group does not operate, while Bumitama Agri said a number of incidents appear to have developed outside the areas directly managed by the group.
Motorists drive through haze from wildfires in Central Kalimantan, Indonesia, on Oct 14, 2026. (Photo: Reuters/Arief Rahman Septian Prathama)
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SINGAPORE: Singapore-listed palm oil producers First Resources and Bumitama Agri pointed to this year’s El Nino event and fires spreading from regions where it does not operate in response to queries about its links to the ongoing haze.
The two companies, along with First Borneo Plantations, were identified in an Oct 5 Greenpeace report as being associated with companies whose plantation concessions are contributing to the haze.
Plantation concessions are areas of land that a company is allowed to use or develop, likely for palm oil planting in this case.
Palm oil stocks slid when trading on the Singapore Exchange opened on Friday (Oct 16), with First Resources shares losing as much as 9.1 per cent to S$3.71 as at 9.20 am, before later inching back up to close at S$3.80.
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Also on the Singapore Exchange, Bumitama Agri was down 7.5 per cent to an intraday low of S$1.73, before settling at S$1.78 at market close. Bumitama Agri requested for a trading halt during the lunch break, and requested to lift the halt after the close.
Amid worsening haze conditions and intensifying scrutiny, First Resources on Thursday said effective fire risk management remains a top priority for the group.
The company added that it implements robust fire prevention, monitoring and firefighting measures throughout its operations.
“In recent months, fire risk across West Kalimantan has been significantly heightened due to prolonged dry conditions associated with the 2026 El Nino event,” said First Resources.
It added that the number of hotspots has declined sharply over the last few weeks.
Current hotspots, said First Resources, are “largely concentrated in regions where the group does not operate”.
The company will work with the government, local communities and other stakeholders to mitigate fire risks and support suppression efforts, it added.
In a separate statement released on SGX on Thursday, First Resources said there have been cases of fires originating outside its boundaries spreading into areas under its management.
Some of these fires were “too massive and fast-spreading to be fully contained” despite its efforts to do so, the company said.
“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,” it added.
Similarly, Bumitama Agri said a number of incidents appear to have developed outside the areas directly managed by the group before spreading across surrounding landscapes.
“Based on the internal observations and preliminary investigations currently available to the group, no evidence has been established linking the group’s operations with initiation of the fires under investigations and to the haze in question,” executive chairman and CEO Lim Gunawan Hariyanto said in a statement published on SGX.
He said fire prevention and management are longstanding priorities for Bumitama, and its approach includes early detection, preparedness, suppression and recovery.
Fire risks are monitored through satellite-based hotspot tracking, 24-hour field monitoring and hourly patrols, artificial intelligence-enabled closed-circuit television and thermal-imaging drones, he said.
Singapore Exchange Regulation (SGX RegCo) said it has engaged listed issuers with agricultural operations and plantations in Indonesia to seek information, including whether their activities may have contributed to the haze and the measures they are taking in response.
SGX RegCo said listed companies are expected to disclose material information in a timely and transparent manner and keep stakeholders informed as the situation develops. It added that it would take appropriate regulatory action if companies fail to meet their disclosure obligations.
CNA has reached out to First Borneo Plantations with queries, but the company has not responded.
POSSIBILITY OF LEGAL ACTION?
Prime Minister Lawrence Wong on Thursday said Singapore is looking into which companies may be responsible for the forest and peatland fires in Indonesia.
“Where warranted, we will take action under Singapore’s Transboundary Haze Pollution Act, and explore joint action with other countries,” he said in a social media post.
The Act, which came into effect in 2014, allows authorities to take legal action against companies responsible for causing or contributing to haze pollution in Singapore, even if their activities take place overseas.
Minister for Sustainability and the Environment Grace Fu said on Wednesday that Singapore was keeping its options open on taking action under the Act, while collecting and reviewing data on the situation.
In 2015, the National Environment Agency (NEA) identified fires on concession lands associated with six companies and issued legal notices to them under the Transboundary Haze Pollution Act.
Investigations into four of the six companies remain ongoing, NEA said in response to CNA’s queries this week.
“As such, NEA is unable to disclose further details,” a spokesperson said.
The companies are PT Bumi Andalas Permai, PT Bumi Mekar Hijau, PT Sebangun Bumi Andalas Woods Industries and PT Rimba Hutani Mas.
Indonesian Foreign Minister Arrmanatha Nasir said on Thursday that President Prabowo Subianto has approved foreign assistance to tackle forest and land fires that have worsened the regional haze crisis, according to local media reports.
Source: CNA/an/ml
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