Indonesia to revoke plantation firms’ land rights over Kalimantan fires

In a move aimed at curbing the recurrent forest and land fires that have devastated large swaths of Kalimantan, Indonesia announced on Monday that it would revoke or restrict cultivation rights for 11 plantation firms linked to the blazes.

The decision, made by the Ministry of Agrarian Affairs and Spatial Planning, follows recommendations from the national police’s criminal investigation department, according to a statement released by the ministry.

Three of the firms will see a full revocation of their cultivation rights after repeated fires damaged more than half of their concession areas and after it was found the companies lacked adequate fire‑prevention facilities and violated land‑use conditions.

The remaining eight companies will face a mix of measures, including partial revocation of rights, denial of new cultivation permits or a further review of their land use status.

According to the ministry, the affected cases span across South, West, and East Kalimantan, regions that have seen a surge of uncontrolled fires largely blamed on commercial clearing practices.

Background of the Fires in Kalimantan

Kalimantan – the Indonesian part of Borneo – has long struggled with seasonal forest fires, many of which are driven by the planting and harvesting cycles of palm oil and other timber plantations.

In recent years the fires have caused significant loss of peatland, a critical carbon store, and have been linked to adverse health and climate impacts, both locally and in the wider region.

Industrial investigations have shown that a number of large plantation groups have repeatedly breached fire‑prevention protocols and failed to maintain adequate buffer zones or firebreaks, increasing the likelihood of wildfire spread.

Government Response and Enforcement

The ministry’s crackdown reflects a broader push by Jakarta to tighten oversight of plantation land use.

By revoking cultivation rights, the government is effectively cutting off access to legal land tenure and making it more difficult for companies to secure new permits.

While the exact timeline for the revocation process has not yet been clarified, officials have indicated that the ministry will work with the police and local governors to finalize the paperwork and enforce the new restrictions.

Industry and Environmental Implications

The decision is likely to impact Indonesia’s palm oil export chain, as the affected firms constitute a significant share of the country’s plantation output.

Environmental groups have welcomed the move as a decisive step toward reducing the frequency and intensity of forest fires, which contribute to rising atmospheric carbon and haze that affects air quality in Southeast Asia.

At the same time, plantation operators and trade associations have expressed concern about the potential economic disruption and the need for clear regulatory guidance on how prohibited companies can mitigate the environmental damage they caused.

Open Questions and Next Steps

Key questions remain about how the revocation will be implemented, how companies will be notified, and what recourse, if any, will be available to firms that disagree with the decision.

Policymakers have also been asked to clarify whether crop cultivation will be allowed on the affected lands in the future under stricter fire‑prevention requirements, and whether there will be compensation for areas that have been declared unfit for agricultural use.

The ministry’s announcement marks an early stage in a potentially broader regulatory overhaul that could see more extensive land‑use restrictions and heightened enforcement of fire‑prevention standards across Indonesia’s forest‑rich provinces.