Former Indonesian Trade Minister Muhammad Lutfi has questioned whether Singapore will pursue haze-linked firms as firmly as it pursues ordinary citizens, pointing out that the city-state is a regional hub for the companies’ headquarters, capital and decision-making. In a social media video, Lutfi called the preventive notices issued by Singapore’s National Environment Agency (NEA) insufficient, according to a Plan B report. He urged Singapore to go further, including searches or legal action where the evidence justifies it, and said corporate headquarters and family offices should not be exempt from scrutiny.
Lufti asked whether companies that enjoy tax incentives for basing themselves in Singapore should face scrutiny over activities linked to haze pollution elsewhere. He also alleged that some palm oil groups use Singapore-based holding companies and trading arms to shift profits out of their Indonesian plantations, raising questions about their tax arrangements. These allegations have not been independently established.
Singapore’s pledge
Lutfi’s remarks came after Senior Minister K. Shanmugam said on October 19 that Singapore would use every legal lever against companies tied to the fires and would keep pursuing the matter after the haze clears. Speaking to reporters, Shanmugam said government agencies were considering legal, regulatory, and economic measures, including pressure on companies’ bottom lines, access to financing, and standing with investors. “They should also be under no illusion that they can simply wait for the haze to clear and return to business as usual. We will pursue this matter for as long as it takes,” he said.
The minister said the scrutiny would go beyond plantation operators to larger corporate groups and the people who ultimately control them. Authorities would also examine whether haze-linked firms enjoy Singapore government grants or incentives, which depend on lawful and responsible conduct, Shanmugam said. The Monetary Authority of Singapore has supervisory jurisdiction over banks to ensure they manage the environmental and legal risks of lending to such companies, he added.
Companies in question
The NEA has issued notices under the Transboundary Haze Pollution Act, 2014, to 10 Indonesian firms: seven were announced first, and three more on October 19. The first seven are: Bumi Andalas Permai, Bumi Mekar Hijau, Paramitra Mulia Langgeng, Sumatera Alam Anugerah, SBA Wood Industries, Hutan Lestari Raya and Bangkanesia. The three newest are Buana Megatama Jaya, Mananjung Hayak and Baratama Putra Perkasa.
Checks by The Straits Times found that four of the first seven had Singapore links. Bumi Andalas Permai, Bumi Mekar Hijau and SBA Wood Industries supply Asia Pulp and Paper, which maintains a Singapore presence. All three received similar notices during the 2015 haze crisis, and those cases remain open. Paramitra Mulia Langgeng is a subsidiary of the Sungai Budi Group, led by Singapore permanent resident Oey Widarto. The group’s vice-chairman, Santoso Winata, is also a Singapore permanent resident.
Buana Megatama Jaya is also a supplier to Asia Pulp and Paper. Noting that Asia Pulp and Paper buys from three firms that have received notices, Shanmugam said: “We will drill into this further.” Separately, the Singapore Exchange has queried seven listed agribusiness firms over their operations and possible ties to the haze: Golden Agri Resources, Bumitama Agri, First Resources, Wilmar, Kencana Agri, Indofood Agri and TSH Resources. First Resources said in an October 16 statement that some fires started outside its boundaries before spreading into areas it manages, and that some became too large and fast-moving to contain. Shanmugam said such statements, “no matter how well drafted, are not good enough.”
Diplomatic issues
Shanmugam dismissed suggestions that the action could strain ties with Jakarta. “We do not think there should be any bilateral issues,” he said, adding that dealing with the firms was in both countries' interests. He praised President Prabowo Subianto and his administration’s efforts to address the haze and said Singapore’s actions aligned with Jakarta’s broader policies. In a Facebook post, Prime Minister Lawrence Wong repeated the “every lever” pledge and said those responsible for the fires would be held to account.
Lufti’s challenge
Lutfi’s remarks suggest that some voices in Indonesia see the real test of Singapore’s resolve as lying less with the plantation operators than with the money and people behind them. He did not say Singapore would decline to act, but his questions point to the tension between its role as a financial and corporate hub and its pledge to act. The 2015 notices to three suppliers remain open, with no public outcome. This time, the government has expressed firm resolve and named banks, listed companies, and incentive recipients as possible targets. Acting against firms with Singapore ties could also test the city-state’s appeal as a business hub. How far the promises turn into action remains to be seen.
