IOI Corporation Bhd (IOI) and Sime Darby Plantation Bhd have denied that plantations operated by their Indonesia subsidiaries have been sealed off after authorities there accused them of starting fires that have caused transboundary smoke affecting Malaysia.

The subsidiaries of IOI Corp and Sime Darby were named along with those of TDM Bhd and Kuala Lumpur Keong Group in a Reuters report which cited Indonesia’s Environment Minister Siti Nurbaya Bakar as saying the plantations under the four Malaysian companies have been identified for burning their land and had been sealed off.

IOI Corp in a statement tonight said its subsidiary, PT Sukses Karya Sawit (PT SKS), had not received any official notification, and had been working to put out fires in recent months.

“PT SKS has been on high alert and has put in place measures to deal with the dry weather and the risk of fire. 

“We were able to quickly extinguish several small fires that have occurred over the last couple of months and have assisted other companies and villagers to respond to fires on our neighbouring lands,” IOI Corp said in a statement.

Sime Darby, in a separate statement, said no action has been taken by Indonesian authorities to seal off the plantation run by its subsidiary PT Sime Indo Agro (PT SIA) as of this afternoon.

PT SIA is part of the Minamas Group, a wholly subsidiary of Sime Darby in Indonesia.

Sime Darby said it monitored all its operation sites throughout the year.

Both companies said they maintained firefighting resources at their estates and conducted fire prevention and surveillance.

Sime Darby said a recent fire on Septembefr 3 had occurred outside the operation area of PT SIA and on lands occupied by local communities.

The company said it had clarified this to the Indonesian environment and forestry authorities.

It said it observed a Zero-Burning Replanting Technique at all its global operations, and also extends this policy to its plantations’ neighbours within 5km of its estates’ boundaries by monitoring and putting out any fires.

Sime Darby said it engages local communities in Indonesia on fire prevention and sustainable agricultural practices.

Malaysia’s Primary Industries Minister Teresa Kok earlier today said she viewed with concern the Indonesian authorities’ claim that four Malaysian companies had allegedly started fires on their plantation lands.

Kok said the four were major oil palm plantation players and had adopted certified sustainable cultivation practices, either through the Malaysian Sustainable Palm Oil, Roundtable on Sustainable Palm Oil, International Sustainability and Carbon Certification or a combination of these systems. – September 13, 2019.