President Prabowo Subianto’s directive for police to press ahead against companies linked to forest and land fires gives Indonesia’s environmental law enforcement a strong political backing and raises the stakes for 95 corporations already flagged as implicated in the damage.
Indonesia orders police to pursue fire-linked companies
The order matters because it signals that karhutla enforcement is not being treated as a symbolic campaign, but as a test of the government’s willingness to police one of the country’s most costly recurring environmental and economic risks. Forest and land fires have long disrupted agriculture, logistics, public health and tourism, while also exposing the state to criticism over weak deterrence.
Legal expert Romli Atmasasmita said Prabowo’s public comments amount to a clear endorsement of National Police Chief Listyo Sigit Prabowo and his team, who have identified companies suspected of violating the law in connection with the fires. He said the president’s stance reflects the “political will” needed for cases to move forward without interference.
Prabowo made the remarks at the PAN party’s 28th anniversary event in Jakarta, where he instructed police not to hesitate in pursuing all parties involved and said the law should be applied evenly in the forestry sector. He also cited police figures showing 95 corporations were suspected of bearing responsibility for fires that have damaged millions of hectares of forest.
For investors, the message is twofold: enforcement risk is rising for plantation, forestry and land-intensive businesses, while companies with cleaner supply chains may benefit if the crackdown forces tougher compliance across the sector. The move could also sharpen scrutiny of insurers, lenders and commodity buyers exposed to operators with land-clearing risk.
The next catalyst will be whether police turn the presidential backing into formal charges, asset seizures or broader corporate probes, which would signal how aggressively Jakarta plans to enforce environmental rules going into the next dry season.
| Entity | Gains | Losses |
|---|---|---|
| National Police / Kapolri | ▲Political backing | ▼Enforcement pressure |
| Prabowo administration | ▲Stronger anti-karhutla stance | ▼Accountability if cases stall |
| Compliant plantation firms | ▲Fairer competition | ▼None immediate |
| 95 flagged corporations | ▲None | ▼Legal and reputational risk |


