September 16, 2019

Authorities respond to Sime Darby and IOI denials

JAKARTA ( - Sime Darby and IOI have denied that palm concessions belonging to them have been sealed due to forest and land fires. Nonetheless, the Indonesian Environment and Forestry Ministry continues to insist that it did seal these concessions on the ground as part of law enforcement actions to combat fires causing haze.

"The sealing of a burned location is part of the law enforcement process. We will apply multi-layered law enforcement, at the administrative, civil and criminal levels," explained the Ministry's Law Enforcement Director General Rasio “Roy” Ridho Sani in Jakarta (Sep 15).

PT SIA, a subsidiary of Sime Darby whose palm oil concession is situated in West Kalimantan province, is one of 42 concessions that have been sealed by the Ministry’s law enforcement team according to the latest update (Sep 14).

The Sime Darby concession is listed as one of the Malaysian palm oil concessions sealed due to clear evidence of forest and land fires in its concession, as seen in the following photos.

Based on the on-site verification report shown by the ministry, there is a signature of a representative from the Sime Darby company. This report served as the basis for the sealing carried out by the ministry as well as for subsequent law enforcement actions. 

Meanwhile, PT SKS, a subsidiary of IOI, is another of the 42 concessions sealed by the ministry's law enforcement team as of mid-September 2019.

The photos below show evidence highlighting the reason why Indonesian authorities sealed the IOI palm oil concession, as previously reported by (Sep 13).

The on-the-ground verification report of the ministry’s law enforcement team also contains the signatures of representatives from the IOI company. The report also served as the basis for the sealing of the location and further law enforcement stages.

Indonesian authorities have pointed out that the denials of the two Malaysian giants about the law enforcement process taking place in their concessions are irrelevant, as this process will continue to the next phase anyway.

“As I explained earlier, the sealing of these concessions will be followed by further stages, which may take the form of administrative, civil or criminal sanctions. This process continues,” Director General Roy asserted.