Indonesia to open cases against Sime Darby firms

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Sumatra firesIndonesia said it will open criminal cases against 8 Malaysia-owned companies believed to be responsible for the disastrous forest fires in Sumatra that enveloped Singapore and large parts of Peninsular Malaysia over the past week and caused health concerns and business shutdowns in the worst air pollution crisis in Southeast Asia in 16 years.

Two of the companies, PT Tunggal Mitra Plantations and PT Bhumi Rakksa Sejati, are owned by the world’s largest palm oil planter, Malaysia’s Sime Darby Bhd, via its Indonesian subsidiary Minamas Plantation. However, Sime Darby has denied any wrongdoing of its subsidiaries.

Another firm is PT Multi Gambut Industri, known in Malaysia as PT TH Indo Plantations, a unit of the Malaysian state-linked Pilgrimage Fund Board, which also said that the fires happened outside the boundaries of its concession area.

As per a 2009 Indonesian law, a person or company found guilty of starting a forest fire can face up to 10 years in jail and $1 million in fines. A company can also have its profits seized for the damages done and its operations shut down.

 

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Reading Time: 1 minute

Indonesia said it will open criminal cases against 8 Malaysia-owned companies believed to be responsible for the disastrous forest fires in Sumatra that enveloped Singapore and large parts of Peninsular Malaysia over the past week and caused health concerns and business shutdowns in the worst air pollution crisis in Southeast Asia in 16 years.

Reading Time: 1 minute

Sumatra firesIndonesia said it will open criminal cases against 8 Malaysia-owned companies believed to be responsible for the disastrous forest fires in Sumatra that enveloped Singapore and large parts of Peninsular Malaysia over the past week and caused health concerns and business shutdowns in the worst air pollution crisis in Southeast Asia in 16 years.

Two of the companies, PT Tunggal Mitra Plantations and PT Bhumi Rakksa Sejati, are owned by the world’s largest palm oil planter, Malaysia’s Sime Darby Bhd, via its Indonesian subsidiary Minamas Plantation. However, Sime Darby has denied any wrongdoing of its subsidiaries.

Another firm is PT Multi Gambut Industri, known in Malaysia as PT TH Indo Plantations, a unit of the Malaysian state-linked Pilgrimage Fund Board, which also said that the fires happened outside the boundaries of its concession area.

As per a 2009 Indonesian law, a person or company found guilty of starting a forest fire can face up to 10 years in jail and $1 million in fines. A company can also have its profits seized for the damages done and its operations shut down.

 

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