Foreign-owned plantation companies operating in Indonesia are subject to the country’s legal framework, as holding land concessions in regions such as Sumatra and Kalimantan requires local incorporation. This places these firms under the direct jurisdiction of Indonesian authorities, which are responsible for auditing concession activities, freezing assets, and prosecuting executives when necessary.
Efforts by neighboring countries like Singapore and Malaysia to address the recurrent haze problem caused by peatland fires have been limited by sovereignty concerns. These countries cannot enforce laws beyond their borders without violating Indonesia’s territorial integrity. As a result, calls have grown for Indonesia to take greater responsibility in managing and regulating its plantation sector to prevent environmental damage.
Critics argue that attributing decades of environmental degradation solely to the foreign ownership of plantations overlooks deeper issues such as weak regulatory frameworks, ineffective law enforcement, and entrenched local interests. While foreign companies are not exempt from accountability, the primary obligation to combat fires and protect the environment rests with Indonesia’s government.
To address these challenges, some experts advocate for greater transparency from Indonesian authorities, including the publication of detailed concession maps that clearly identify areas under plantation management. They also call for stricter enforcement actions against subsidiaries implicated in environmental violations, regardless of their ownership, and recommend permanently revoking the licenses of repeat offenders.
Moreover, responsible investment practices and adherence to environmental, social, and governance (ESG) principles must extend beyond national borders. Investors, financial institutions, and consumers in countries such as Malaysia and Singapore are urged to scrutinize the practices of companies operating in Indonesia to discourage irresponsible behavior.
Ultimately, sovereignty entails not only protecting a country’s borders but also exercising effective governance within them. As the root of the haze problem lies primarily in inadequate oversight and enforcement, Indonesia faces increasing pressure to strengthen its internal regulatory mechanisms and hold all plantation operators—domestic or foreign—accountable for environmental compliance.