Indonesia is reinstating a specialized agency under direct presidential oversight to address the recurring problem of haze caused by peatland fires, a significant source of toxic smoke affecting the region. The National Peatland and Mangrove Management Agency (BPGMN) was announced on September 24 by President Prabowo Subianto amid escalating fire incidents in peatlands that have once again deteriorated air quality in Indonesia and neighboring Singapore.

The BPGMN will operate directly under President Prabowo’s supervision, a move expected to enhance its authority to coordinate across various ministries and enforce regulations more effectively on concession holders, including large plantations. This structure is designed to overcome challenges faced by previous peatland restoration bodies, which lacked sufficient power inside corporate concessions to enforce peatland protection measures.

Indonesia’s peatlands, covering an estimated 33 million hectares and among the largest globally, are highly vulnerable to fire, especially when degraded. According to the Environment and Forestry Ministry, over 80% of the 24.1 million hectares of assessed peat ecosystems are currently degraded to various degrees. Peatlands, when dried out, can ignite easily and burn for extended periods, producing persistent haze that contributes to severe respiratory health issues regionally.

The preceding agencies—the Peatland Restoration Agency (BRG) established in 2016 and later its successor, the Peatland and Mangrove Restoration Agency (BRGM)—had temporary mandates that ended this year, leaving a gap in dedicated peat restoration efforts as fires intensified again in 2026. The new BPGMN is expected to continue restoration work but with a mandate and specific targets yet to be clarified by an upcoming presidential regulation currently under preparation by the Forestry Ministry.

Experts caution that the success of BPGMN will depend heavily on its ability to enforce policies that address permits and operational practices contributing to peatland degradation. Uli Arta Siagian of environmental group WALHI emphasized that without genuine political will and corrective policy measures, the new agency risks becoming a mere rebranding of previous efforts. Likewise, Bhima Yudhistira Adhinegara, executive director of the Center of Economic and Law Studies in Indonesia (CELIOS), called for BPGMN to be vested with “super powers” that include not only problem identification but also execution authority, such as auditing and sanctioning concession holders, with transparent reporting and measurable performance indicators.

One of the critical weaknesses exposed in past efforts was limited authority within corporate concessions, where peatland damage often occurs. Although the government has taken some action—including the recent revocation of licenses for five firms involved in land fires—the responsibility for peatland management largely remains with concession holders. BPGMN is expected to have broader powers to monitor compliance, require restoration measures like re-wetting, and impose sanctions to prevent further degradation.

Funding also poses a challenge. While the former agencies operated on state budgets supplemented by foreign support totaling around 500 billion rupiah (approximately $31 million) annually, experts like Bhima suggest significantly higher, sustained funding is necessary—potentially exceeding 12 trillion rupiah ($877 million) annually—to adequately implement prevention, monitoring, and restoration programs.

The agency’s establishment follows consultations between President Prabowo and a group of scientists and environmental professionals, many of whom worked with previous peat restoration bodies. These experts highlight the need for real-time water-table monitoring to enable early intervention before fires break out and for incorporating local communities into restoration efforts. They argue that restoration success should be gauged by ecosystem recovery rather than infrastructure alone.

Additionally, initiatives to provide sustainable livelihoods that do not degrade peatlands—such as aquaculture ventures in peatland water—are being advocated to align economic incentives with conservation goals. Experts also call for regional collaboration with countries like Malaysia and Singapore to support green investments benefiting local communities and to strengthen peatland protection across Southeast Asia.

By placing the BPGMN directly under presidential control and granting it enhanced authority, Indonesia aims to build on a decade of lessons learned and reduce the cyclical damage from peat fires. However, analysts agree that the true test of the agency will be its ability to translate scientific knowledge and policy into effective, enforceable action that addresses the underlying causes of peatland degradation.