SE Asia

Great Haze II - burning concessions identified by Greenpeace

This study by Greenpeace presents hots spots for 11-21 June mapped onto palm oil concession. Just palm oil concessions? According to WRI study, these account for 20% of hot spots. There are other types of concessions afire and about half of fires are outside of concession areas. Anyhow, in the coming weeks, the Haze Blame Game will unfold.

Great haze II - the blame game starts

It’ll be interesting to see which companies get investigated and possibly blamed for contributing to SE Asia's second great haze. The recently announced Indonesia list of names being investigated coincides with WRI's report which uses NASA data on fires overlaid on plantation concession maps (yellow highlighted names).

Foreign-owned and foreign-based Indonesian companies seem to be the focus of the first set of names announced. More companies will be named in days to come, presumably to include the locally based Indonesian names.

The Indonesian government had identified 8 Malaysian and 2 Singaporean based companies behind the forest burning in Sumatera.  They are under investigation.

  1. PT Langgam Inti Hiberida [KLAU RIVER ENT SDN BHD]
  2. PT Bumi Rakksa Sejati, 
  3. PT Tunggal Mitra Plantation [SIME DARBY]
  4. PT Udaya Loh Dinawi,
  5. PT Adei Plantation [KLK]
  6. PT Jatim Jaya Perkasa [*NOT OWNED BY WILMAR - updated 23 June 2013]
  7. PT Multi Gambut Industri,
  8. PT Mustika Agro Lestari

  1. Asia Pulp & Paper 
  2. APRIL         

WRI's analysis with NASA fire data is worth looking at. Weblink:

WRI's analysis of NASA fire alert data during the recent period, finds that 48% of the fires were outside of concession areas, 27% in timber plantations, 20% in oil palm areas, 4% in protected areas and 1% in logging areas. The high proportion (nearly half) outside of concession areas differs from NGO assessments of an earlier SE Asian haze episode which only attributed 20% of "blame" on smallholder farmers. Does this imply that plantation practices have improved?

WRI provides a top 15-17 list with ranking of concession companies by the number of fire alerts in their areas. The oil palm list and the timber plantation lists are as follows:

Trends in planted area for the Top 10

Khor Reports comment: The recent 3-year expansion by the ten largest plantations has averaged some 18,000 ha each year. The annual net increase in their planted area has decelerated from an average of 33,000 to11,300 and 9,300 ha per year. The recent Indonesian moratorium on deforestation has been successfully diluted by corporate and development lobbies. Indonesian planters note that uncertainty surrounding the moratorium had the impact of tamping back their country's 2010 expansion to some 300,000 ha instead of a minimum 500,000 ha per year in prior years (refer to ). Indonesia is widely reported as deforesting at the rate of 1 million ha per year. This implies that oil palm new plantings accounts for half of Indonesia's recent annual deforestation.

The Top 30

The Top 30 public-listed SE Asian plantation groups, listed by market capitalization:

Source: Khor Reports
Data: Bloomberg, 27 Jan 2011

The aggregate landbank (hectares) for selected top plantation groups (inclusive own estates, smallholder / plasma, interest in joint ventures, and unplanted areas):

Source: Khor Reports
Data: Recent company annual reports