--- title: Who Is Burning Indonesia's Forests in 2026, and Who Pays for Singapore's Haze? description: Join The Financial Coconut for insights on personal finance, investing, and wealth-building strategies. Start your path to financial literacy today! image: https://www.thefinancialcoconut.com/hubfs/a-wildfire-engulfs-the-chetamon-region-in-the-cana-2026-09-22-17-28-38-utc-jpg.jpeg --- [Skip to content](https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia#main-content) [![Full\_COlour](https://www.thefinancialcoconut.com/hs-fs/hubfs/Full_COlour.png?width=456&height=80&name=Full_COlour.png)](https://www.thefinancialcoconut.com/) - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) Open main navigation Close main navigation - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) - [Contact us](https://www.thefinancialcoconut.com/contact-us) [Contact us](https://www.thefinancialcoconut.com/contact-us) Oct 20, 2026, 10:38:28 AM # Who Is Burning Indonesia's Forests in 2026, and Who Pays for Singapore's Haze? ![Picture of The Financial Coconut](https://www.thefinancialcoconut.com/hs-fs/hubfs/Square%20(2)-3.png?width=50&name=Square%20(2)-3.png) [The Financial Coconut](https://www.thefinancialcoconut.com/blog/author/the-financial-coconut) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) [envelope icon](mailto:?body=https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) [Share this page](https://twitter.com/intent/tweet?url=https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) [![Follow The Financial Coconut](https://no-cache.hubspot.com/cta/default/46975693/interactive-182431637553.png)](https://cta-service-cms2.hubspot.com/web-interactives/public/v1/track/redirect?encryptedPayload=AVxigLL2CjCe42iR2RH2MpVX0Ej%2BKJQ%2F3A0Z7pXnUs35To%2Bo6nbKcpBVq9I98X5NUungVEwfs5YCKuM%2FaP97VxIITkTlihT57%2F%2F4XDW9rT3VR4MatSLDi%2BMU5mbQqihfX3LRRz83ij8K19OiD8UXy8sdct4t0Q%3D%3D&webInteractiveContentId=182431637553&portalId=46975693)   **TL;DR:** 1. The 2026 fires are mostly deliberate land clearing on drained peatland, turbo-charged by a strong El Niño. 2. The Indonesian Forum for Living Environment is an Indonesian environmental non-governmental organisation, WALHI, says 74% of Kalimantan hotspots sit inside corporate concessions. 3. Singapore has served notices on 10 Indonesian companies, but in 12 years the Transboundary Haze Pollution Act has never fined anyone, and the maximum fine is S$2 million against a haze bill that could reach S$3.9 billion. Indonesia's 2026 forest fires are being set mainly by people clearing land for plantations and farms, with a strong El Niño turning drained peatland into tinder. Environmental group Walhi found 74% of Kalimantan hotspots inside corporate concessions, and Singapore has now named 10 Indonesian companies whose land it believes sent smoke our way. ![](https://www.thefinancialcoconut.com/hs-fs/hubfs/a-wildfire-engulfs-the-chetamon-region-in-the-cana-2026-09-22-17-28-38-utc-jpg.jpeg?width=6000&height=4000&name=a-wildfire-engulfs-the-chetamon-region-in-the-cana-2026-09-22-17-28-38-utc-jpg.jpeg) ## Who has been starting the fires in Indonesia in 2026? Drought does not light fires, people do. Indonesia's weather agency BMKG said the El Niño dry spell created the conditions, but an ignition source was still needed. Three groups come up repeatedly: 1. **Concession holders.** Walhi counted 34,262 hotspots across Kalimantan from January to July 2026. About 74% (25,524) were inside licensed areas: 10,739 in oil palm concessions, 7,880 in mining concessions and 6,905 in forest utilisation permit areas. 2. **Smallholders and farmers.** Indonesia's disaster agency has said fires are often started by plantation owners or traditional farmers clearing land for planting. Police arrested 72 people in August on suspicion of starting fires. 3. **State-linked projects.** Walhi's 14 October study, "Who's Behind the Fires?", found 807 hotspots in the Merauke food and energy estate in South Papua, with 674 of them in food estate clusters run by government ministries. Jakarta has sealed around 50 company concessions and sanctioned six permit holders, Bernama and Indonesia Investments reported. Environmentalists such as TheTreeMap's David Gaveau argue the deeper cause is 50 years of permits that drained the peatland in the first place. ## Which companies has Singapore named? **Served Preventive Measure Notices by NEA under the THPA (10 companies)** Sumatra concessions: 1. PT Bumi Andalas Permai 2. PT Bumi Mekar Hijau 3. PT Paramitra Mulia Langgeng 4. PT Sumatera Alam Anugerah 5. PT SBA Wood Industries 6. PT Hutan Lestari Raya 7. PT Bangkanesia 8. PT Buana Megatama Jaya 9. PT Mananjung Hayak 10. PT Baratama Putra Perkasa A notice is not a finding of guilt. It requires the company to deploy firefighters, stop burning and submit an action plan to NEA. On 16 October, the National Environment Agency (NEA) issued Preventive Measure Notices under the Transboundary Haze Pollution Act (THPA) to seven companies holding concessions in Sumatra: PT Bumi Andalas Permai, PT Bumi Mekar Hijau, PT Paramitra Mulia Langgeng, PT Sumatera Alam Anugerah, PT SBA Wood Industries, PT Hutan Lestari Raya and PT Bangkanesia. On 19 October it added three more with concessions in Kalimantan: PT Buana Megatama Jaya, PT Mananjung Hayak and PT Baratama Putra Perkasa. A notice is not a conviction. It requires the company to deploy firefighters, stop any burning, and submit a plan to NEA. Ignoring it can cost up to S$50,000 a day on top of any later penalty. ![](https://www.thefinancialcoconut.com/hubfs/dry-season-vegetation-fire-ignites-florida-forest-2026-09-22-11-21-15-utc-jpg.jpeg) Separately, Walhi traced 93 companies with fire indications to business groups from Singapore and Malaysia, naming Sinar Mas, Wilmar, Musim Mas and First Resources. Greenpeace linked concessions associated with SGX-listed First Resources and Bumitama Agri to fire detections. First Resources has disputed this, saying many hotspots were outside its boundaries and some fires spread into its land from elsewhere. Bumitama had not responded to media queries as of 16 October. Walhi itself cautions that ownership links to a burning concession are not proof that a company set the fire. None of these groups is among the 10 companies NEA has named. ## How much will the 2026 haze cost Singapore, and who pays? Economist Euston Quah, who has costed every major haze episode since 1997, told Eco-Business that damage so far already exceeds 2015 over the same period. Eco-Business calculations based on his preliminary assessment put the 2026 bill at S$3.2 billion to S$3.9 billion, against S$1.83 billion in 2015, the costliest year on record. By 16 October the haze had lasted about 34 days, with the 24-hour PSI peaking at 192 on 9 October. Compare that with the law meant to make polluters pay. Under the THPA, a guilty company faces up to S$100,000 per day of haze, capped at S$2 million. That cap is less than a thousandth of the projected cost. Since the Act took effect in 2014, no company has been fined or sued under it. Of six firms served notices in 2015, four investigations remain open 11 years later. NUS law professor Alan Tan told Eco-Business that Singapore cannot prove facts on the ground without Indonesian cooperation, and that smaller companies with no Singapore presence are likely beyond the Act's reach. One lever that does work: the Act lets anyone in Singapore who suffers loss sue for damages, with no cap. ![](https://www.thefinancialcoconut.com/hs-fs/hubfs/foggy-cityscape-view-with-tall-buildings-2026-09-25-07-50-47-utc-jpg.jpeg?width=5464&height=3640&name=foggy-cityscape-view-with-tall-buildings-2026-09-25-07-50-47-utc-jpg.jpeg) ## What does this mean for your money? **If you invest in Singapore stocks.** Plantation and agribusiness names sit inside ETFs and unit trusts you may already hold, and governance now includes fire risk. How well SGX companies are run was the focus of [Chills with TFC episode 282 on governance and valuations](https://www.thefinancialcoconut.com/blog/chillswithtfc-282), and this season gives you a live test case. **If you watch the cost of living.** The Singapore Institute of International Affairs warned earlier this year that energy costs from the Strait of Hormuz closure had raised planters' production costs by 20% to 30%, making fire a tempting shortcut. The same energy shock behind Singapore's [S$1 billion cost-of-living response](https://www.thefinancialcoconut.com/blog/singapores-1-billion-response-to-the-energy-crisis) is now feeding into the air you breathe. **If you run a business.** Outdoor F&B, events and tourism operators are absorbing the losses Quah is counting. Document them, because the THPA's civil route exists even if no one has used it. Our [Business vertical](https://www.thefinancialcoconut.com/business) covers how SMEs are managing this year's cost shocks. ## FAQ 1. **Who is responsible for the 2026 haze in Singapore?** Fires in Sumatra and Kalimantan, mostly from land clearing on peatland during a strong El Niño. Walhi found 74% of Kalimantan hotspots inside corporate concessions. NEA has named 10 Indonesian companies so far. 2. **Can Singapore fine the companies causing the haze?** In theory, yes: up to S$100,000 a day, capped at S$2 million under the Transboundary Haze Pollution Act. In practice, no company has been fined or sued since 2014. 3. **Are any Singapore-listed companies linked to the fires?** Walhi and Greenpeace have linked concessions associated with First Resources and Bumitama Agri to hotspots. First Resources disputes this. Neither is among the 10 companies NEA has named. 4. **How long will the haze last?** Minister Grace Fu said conditions should improve when the inter-monsoon period arrives in late October or early November. The fires are human-made, the bill lands on Singapore, and the law built to recover it has yet to collect a dollar. Keep an eye on whether NEA moves beyond notices. For analyst-led discussion of what this means for Singapore investors, follow [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) and join the community via the [TFC link hub](https://linkin.bio/thefinancialcoconut). #### References - National Environment Agency, [NEA Issues Notices Under The Transboundary Haze Pollution Act](https://www.nea.gov.sg/media/news/news/index/nea-to-issue-notices-under-the-transboundary-haze-pollution-act-2026) - National Environment Agency, [Haze Situation Update (18 October 2026)](https://www.nea.gov.sg/media/news/advisories/index/haze-situation-update-18-october-2026) - Singapore Statutes Online, [Transboundary Haze Pollution Act 2014](https://sso.agc.gov.sg/Act/THPA2014) - Eco-Business, [This year's haze is set to cost Singapore more than 2015's S$1.83 billion. Who pays for the losses?](https://www.eco-business.com/news/this-years-haze-is-set-to-cost-singapore-more-than-2015s-s183-billion-who-pays-for-the-losses/) - AsiaOne, [NEA issues haze notices to 3 more Indonesian firms, bringing total to 10](https://www.asiaone.com/singapore/nea-serves-notices-three-indonesian-firms-fires-haze) - Bernama, [Singapore To Issue Preventive Measure Notices To Seven Indonesian Firms Linked To Haze](https://bernama.com/en/world/news.php?id=2621483) - Bernama, [Indonesia Seals 50 Companies Over Forest, Land Fire Hotspots](https://www.bernama.com/en/world/news.php?id=2608119) - Walhi via Indoleft, ['Who's behind the fires': Walhi launches study on who benefits from forest fires](https://www.indoleft.org/statements/2026-10-14/whos-behind-the-fires-walhi-launches-study-on-who-benefits-from-forest-fires.html) - Changemakr Asia, [Kalimantan Forest and Land Fires Surge as Hotspots Spread Across Corporate Concessions](https://changemakr.asia/kalimantan-forest-and-land-fires-surge-as-hotspots-spread-across-corporate-concessions/) - ABC News, [Indonesia battling wildfires as smoke haze spreads as far as the Philippines](https://www.abc.net.au/news/2026-09-04/causes-of-indonesian-wildfires-and-how-the-government-tackling/107113456) - Bloomberg, [Indonesia's Worst Fire Season in Years Tests Prabowo Budget Cuts](https://www.bloomberg.com/graphics/2026-indonesia-wildfires-el-nino/) - The Star, [Two Singapore-listed palm oil firms named in Greenpeace report on Indonesian plantation fires](https://www.thestar.com.my/aseanplus/aseanplus-news/2026/10/15/two-singapore-listed-palm-oil-firms-named-in-greenpeace-report-on-indonesian-plantation-fires) - Ecobiz Asia, [Singapore's First Resources Says Many Fire Hotspots Were Outside Its Operating Areas](https://ecobiz.asia/singapores-first-resources-says-many-fire-hotspots-were-outside-its-operating-areas/) - South China Morning Post, [Southeast Asia's 'red alert' haze fight faces economic test](https://www.scmp.com/week-asia/health-environment/article/3358548/southeast-asias-red-alert-haze-fight-faces-economic-test) - Indonesia Investments, [Fires Surge in Kalimantan and Sumatra as Government Cracks Down on Corporate Concessions](https://www.indonesia-investments.com/news/todays-headlines/fires-surge-in-kalimantan-and-sumatra-as-government-cracks-down-on-corporate-concessions/item10025) Let us know what you think about this topic, and what do you want to hear next. You can now be our community contributor and make a [pitch](https://thefinancialcoconut.com/contact/)to have your favourite personality be on our show. Join our [community group](https://linkin.bio/thefinancialcoconut/?fbclid=PAZXh0bgNhZW0CMTEAAaY2-JSYItZawSUnNP4YhAicLp0H2wXwx8EBmQgbzOJrjA6YRiPWXtFDSH4_aem_t1DMRY5jrSAapreaSX9ntw) and drop us your insights on this topic.   ### Stay ahead in your financial journey! Sign up for our newsletter to receive insights, tips, and strategies from The Financial Coconut Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) [envelope icon](mailto:?body=https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) [Share this page](https://twitter.com/intent/tweet?url=https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/a-wildfire-engulfs-the-chetamon-region-in-the-cana-2026-09-22-17-28-38-utc-jpg.jpeg?height=200&name=a-wildfire-engulfs-the-chetamon-region-in-the-cana-2026-09-22-17-28-38-utc-jpg.jpeg)](https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) ## [Who Is Burning Indonesia's Forests in 2026, and Who Pays for Singapore's Haze?](https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/urban-financial-data-overlay-on-city-architecture-2026-09-24-20-49-24-utc-jpg.jpeg?height=200&name=urban-financial-data-overlay-on-city-architecture-2026-09-24-20-49-24-utc-jpg.jpeg)](https://www.thefinancialcoconut.com/blog/indonesia-stock-market-crash-msci-singapore-investors) ## [Why Did Indonesia's Stock Market Crash, and Does It Hit Singapore Investors?](https://www.thefinancialcoconut.com/blog/indonesia-stock-market-crash-msci-singapore-investors) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/woman-using-atm-machine-on-city-street-2026-09-24-05-09-11-utc-jpg.jpeg?height=200&name=woman-using-atm-machine-on-city-street-2026-09-24-05-09-11-utc-jpg.jpeg)](https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) ## [Are Malaysian and Singapore Bank Shares Falling for the Same Reason?](https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/singapore-2026-09-22-16-00-08-utc-jpg.jpeg?height=200&name=singapore-2026-09-22-16-00-08-utc-jpg.jpeg)](https://www.thefinancialcoconut.com/blog/mas-policy-review-14-october-2026-mortgage-savings) ## [MAS Policy Review on 14 October 2026: What Could It Mean for Your Mortgage and Savings?](https://www.thefinancialcoconut.com/blog/mas-policy-review-14-october-2026-mortgage-savings) ## Let us know what you think of this post [![Logo\_White](https://www.thefinancialcoconut.com/hs-fs/hubfs/Logo_White.png?width=111&height=69&name=Logo_White.png "Logo_White")](https://www.thefinancialcoconut.com/) [facebook-f icon](https://www.facebook.com/financialcoconut/) [linkedin-in icon](https://sg.linkedin.com/company/the-financial-coconut) [TikTok icon](https://www.tiktok.com/@thefinancialcoconut?lang=en) [instagram icon](https://www.instagram.com/thefinancialcoconut/) [Follow us on Facebook](https://www.youtube.com/channel/UCREEmSahtQyTBjJudI6kgmg) [Follow us on Facebook](https://open.spotify.com/show/6ndJZx2bk8jYgQHAXIwg1C) [Follow us on Facebook](https://podcasts.apple.com/sg/podcast/the-financial-coconut-podcast/id1487004505) 6 Shenton Way, OUE Downtown 2, #07-13, Singapore 068809 Copyright © 2025 - - [About Us](https://www.thefinancialcoconut.com/about-us) - [Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) - [Blog](https://www.thefinancialcoconut.com/blog) - - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Business](https://www.thefinancialcoconut.com/business) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - - [Contact Us](https://www.thefinancialcoconut.com/contact-us) - [Work With Us](https://www.thefinancialcoconut.com/workwithus) - [Ask Our Experts](https://www.thefinancialcoconut.com/ask-us) - [Make Your Pitch](https://www.thefinancialcoconut.com/make-your-pitch) - [Service and User Agreement](https://www.thefinancialcoconut.com/service-agreement) - [Privacy Policy](https://www.thefinancialcoconut.com/privacy-policy) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "The Financial Coconut", "url" : "https://www.thefinancialcoconut.com/blog/author/the-financial-coconut" }, "dateModified" : "2026-10-20T02:38:28.742Z", "datePublished" : "2026-10-20T02:38:28.000Z", "headline" : "Who Is Burning Indonesia's Forests in 2026, and Who Pays for Singapore's Haze?", "image" : [ "https://www.thefinancialcoconut.com/hubfs/a-wildfire-engulfs-the-chetamon-region-in-the-cana-2026-09-22-17-28-38-utc-jpg.jpeg" ], "mainEntityOfPage" : { "@id" : "https://www.thefinancialcoconut.com/blog/haze-who-is-burning-indonesia", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.thefinancialcoconut.com/hubfs/Full_COlour-2.png" }, "name" : "The Financial Coconut" } } ```