Olam Group denies direct exposure to Indonesian fires

By the Editorial Team · Friday, October 23, 2026

Olam Group stated that it and its former subsidiary Olam Agri are not involved in operating oil palm plantations in Indonesia and denied any direct role in the recent forest and peatland fires. The company highlighted its function as a trader sourcing from third parties, affirmed its environmental risk controls, and said it does not expect the fires to significantly affect its business or regulatory standing.

Olam Group has denied any direct operational involvement in the recent forest and peatland fires in Indonesia, stating that neither it nor its subsidiary Olam Agri owns or operates oil palm plantations or concessions in the country. The company made the clarification on October 21 in response to inquiries from the Singapore Exchange Regulation regarding potential links between its activities and transboundary haze issues in the region.

Olam Group emphasized that Olam Agri ceased to be its subsidiary in April 2026 after being sold to a Saudi investment fund. While approximately 70% of Olam Agri’s global palm oil sourcing volume originates from Indonesia, the company primarily functions as an intermediary trader. It sources from third-party refineries without owning or managing plantations, mills, refineries, or other palm oil processing facilities within Indonesia.

The group pointed out that the responsibility for fire prevention, suppression, and land management lies with upstream landowners and plantation operators. Nevertheless, it noted that Olam Agri maintains environmental risk controls through ongoing monitoring, supplier engagement, and adherence to a responsible sourcing framework.

Olam Group reported no awareness of any significant effects of the recent fires on Olam Agri’s palm oil sourcing operations, nor any formal regulatory inquiries or notices related to these incidents. The company has reviewed recent fire alerts, stakeholder reports, and media coverage concerning the Indonesian fires as part of its monitoring processes.

It added that mills and corporate entities mentioned in external reports were cross-checked against Olam Agri’s supply chain, with relevant suppliers and affiliated groups contacted for clarification when necessary. While some issues have been resolved following engagement, others remain under internal review or await further information.

The company does not anticipate the fire-related matters to have any substantial operational, financial, legal, regulatory, or reputational impact on its business. Following the announcement, Olam’s shares edged up by one cent, or 1.1%, to 91 cents.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.