Indonesian authorities probe SGX-listed Kencana Agri over land-clearing fires

Kencana Agri, which trades on the Singapore Exchange, faces scrutiny from Indonesian officials investigating suspected unauthorised land clearing through burning. The inquiry follows a spike in fires across Indonesia that have contributed to haze affecting the region, including Singapore.

The company issued a statement on Friday distancing itself from the fires and associated haze. Several other SGX-listed firms with operations in Indonesia similarly moved to clarify their positions amid growing concerns over agricultural land-clearing practices in the country.

Indonesian authorities have intensified monitoring of land-clearing activities as seasonal fires pose significant air quality risks to neighbouring countries. The investigations reflect mounting pressure on companies to adopt sustainable practices and comply with environmental regulations governing forest and land management.

The matter underscores ongoing challenges in enforcing environmental compliance across Southeast Asia's agricultural sector, where illegal or uncontrolled burning remains a persistent issue during dry seasons.