Key Takeaways
- • Singapore's National Environment Agency (NEA) served Preventive Measure Notices under the Transboundary Haze Pollution Act (THPA) on three more Indonesian companies on Monday, bringing to 10 the number of Indonesian firms targeted since 16 October, and marking the first notices in this haze episode linked to fires in Kalimantan.
- • The three newly named companies are PT Baratama Putra Perkasa, PT Buana Megatama Jaya and PT Mananjung Hayak; seven others were served on 16 October for fires in Sumatra. No company has yet been fined or sued under the THPA since it took effect in 2014.
- • Under the THPA, companies can face fines of up to S$100,000 per day of haze, or S$50,000 per day for non-compliance with a notice, capped at S$2 million in total, while affected parties may sue without a cap on damages.
- • Singapore's Senior Minister K Shanmugam said the government would use "every legal and regulatory lever" against responsible companies, whether or not they have a Singapore presence, and that the SGX had queried seven Singapore-listed agricultural companies over links to the fires.
- • The Singapore Environment Council placed temporary restrictions on Asia Pulp & Paper's (APP) SGLS+ certification over concessions supplied by three firms, with suspension possible if fire-response reporting proves inadequate.
Summary
Singapore's National Environment Agency (NEA) has served legal notices on three additional Indonesian companies after finding indications that smoke from fires on their land in Kalimantan could have drifted to Singapore. According to the agency, the companies named on Monday, PT Baratama Putra Perkasa, PT Buana Megatama Jaya and PT Mananjung Hayak, bring to 10 the number of Indonesian firms targeted since 16 October under the Transboundary Haze Pollution Act (THPA). The Preventive Measure Notices, issued under Section 9 of the THPA, require recipients to deploy firefighters, stop any burning, and submit plans to extinguish fires and prevent recurrence. Seven companies received similar notices on 16 October for fires in Sumatra. No company has been fined or sued under the law since it came into force in 2014.
NEA's daily haze advisories have identified Kalimantan as a smoke source reaching Singapore since early October, and on 15 October the agency forecast continued easterly-south-easterly drift from the region. Singapore's air quality entered the unhealthy range on 4 September, the first time since October 2023. The 24-hour Pollutant Standards Index reached 203 in the west on 14 October and a season-high of 230 on 18 October. The ASEAN Specialised Meteorological Centre expects El Niño conditions to strengthen through October and November, and Minister Grace Fu has said conditions are unlikely to improve before the inter-monsoon period in late October or early November.
Senior Minister K Shanmugam said on Monday that Singapore would use "every legal and regulatory lever" against responsible companies, whether or not they have a local presence. He said the SGX had queried seven Singapore-listed agricultural companies about their operations and any links to the fires, and that the government would examine whether haze-linked companies receive Singaporean grants or incentives. He added that legislation could be amended or new laws introduced urgently if necessary. Shanmugam said the actions were consistent with policies announced by Indonesian President Prabowo Subianto. The Attorney-General's Chambers has advised that issuing notices this month may raise technical and legal issues, and evidence from Indonesia has become harder to obtain, as the forestry ministry's Sigap mapping platform is now view-only with penalties of up to nine years' imprisonment for unauthorised data extraction.
Enforcement faces practical constraints. Alan Tan, Professor at the NUS Faculty of Law, told Eco-Business that the Act depends on Indonesian cooperation and that prosecutions would likely be limited to companies Indonesia has itself identified and charged. Eco-Business estimated that this year's haze could cost Singapore between S$3.2 billion and S$3.9 billion, exceeding the S$1.83 billion lost in 2015, based on a preliminary assessment by economist Euston Quah; the maximum THPA fine would cover less than a thousandth of that figure. Over the 2015 haze, NEA served notices on six Indonesian companies, two of which were closed in 2017, with the other four still open; three of those firms are among those served last week.
Separately, the Singapore Environment Council on 18 October placed temporary restrictions on Asia Pulp & Paper's (APP) SGLS+ certification. The restriction covers concessions in South Sumatra run by PT Bumi Andalas Permai, PT Bumi Mekar Hijau and PT SBA Wood Industries, which supply wood fibre to APP. APP must report daily on fire response, and the certificate may be suspended if reporting does not show effective fire prevention. Shanmugam cited APP, which is incorporated in Singapore, as an example of the government looking beyond concession holders to the corporations controlling them.
NEA's daily haze advisories have identified Kalimantan as a smoke source reaching Singapore since early October, and on 15 October the agency forecast continued easterly-south-easterly drift from the region. Singapore's air quality entered the unhealthy range on 4 September, the first time since October 2023. The 24-hour Pollutant Standards Index reached 203 in the west on 14 October and a season-high of 230 on 18 October. The ASEAN Specialised Meteorological Centre expects El Niño conditions to strengthen through October and November, and Minister Grace Fu has said conditions are unlikely to improve before the inter-monsoon period in late October or early November.
Senior Minister K Shanmugam said on Monday that Singapore would use "every legal and regulatory lever" against responsible companies, whether or not they have a local presence. He said the SGX had queried seven Singapore-listed agricultural companies about their operations and any links to the fires, and that the government would examine whether haze-linked companies receive Singaporean grants or incentives. He added that legislation could be amended or new laws introduced urgently if necessary. Shanmugam said the actions were consistent with policies announced by Indonesian President Prabowo Subianto. The Attorney-General's Chambers has advised that issuing notices this month may raise technical and legal issues, and evidence from Indonesia has become harder to obtain, as the forestry ministry's Sigap mapping platform is now view-only with penalties of up to nine years' imprisonment for unauthorised data extraction.
Enforcement faces practical constraints. Alan Tan, Professor at the NUS Faculty of Law, told Eco-Business that the Act depends on Indonesian cooperation and that prosecutions would likely be limited to companies Indonesia has itself identified and charged. Eco-Business estimated that this year's haze could cost Singapore between S$3.2 billion and S$3.9 billion, exceeding the S$1.83 billion lost in 2015, based on a preliminary assessment by economist Euston Quah; the maximum THPA fine would cover less than a thousandth of that figure. Over the 2015 haze, NEA served notices on six Indonesian companies, two of which were closed in 2017, with the other four still open; three of those firms are among those served last week.
Separately, the Singapore Environment Council on 18 October placed temporary restrictions on Asia Pulp & Paper's (APP) SGLS+ certification. The restriction covers concessions in South Sumatra run by PT Bumi Andalas Permai, PT Bumi Mekar Hijau and PT SBA Wood Industries, which supply wood fibre to APP. APP must report daily on fire response, and the certificate may be suspended if reporting does not show effective fire prevention. Shanmugam cited APP, which is incorporated in Singapore, as an example of the government looking beyond concession holders to the corporations controlling them.
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