Kencana, a Singapore-listed plantation and agribusiness company, is under investigation following recent forest and peatland fires in Indonesia that have contributed to transboundary haze affecting Singapore, Malaysia, and Indonesia. The company acknowledged that approximately 62 hectares within its concession areas in North Kalimantan and East Kalimantan were affected, but denied that the fires originated from its operations, stating they spread from adjacent land.

The disclosures were made in response to inquiries from Singapore Exchange Regulation amid heightened scrutiny of several Singapore-based plantation companies linked to fires in Indonesia. While some companies have admitted to fires within their concessions, they dispute responsibility for starting the blazes.

Kencana, which operates plantations and mills across Sumatra, Kalimantan, and Sulawesi, emphasized that the affected 62 hectares represent a small fraction of its overall planted area of about 67,862 hectares. The company reported that its firefighting teams have been collaborating with local authorities and communities to manage and contain the fires. They have utilized drones and fire observation towers to monitor active fire fronts and to coordinate ground response efforts. Kencana stated that the situation is currently "under control."

The ongoing investigation and the broader concerns over forest fires highlight continuing challenges in the region related to land management, environmental protection, and cross-border pollution stemming from recurring peatland and forest fires in Indonesia.