Kalimantan is facing continued forest and land fires in 2026, with the fires affecting the environment, public health and economic activity while the region remains a major center of Indonesia’s palm oil industry.

Data from the Ministry of Forestry showed 20,378 hotspots across Indonesia on August 29, 2026, up from 18,092 on August 28 and 14,788 on August 27. In Kalimantan, hotspots increased sharply in Central Kalimantan from 7,703 to 8,488 and in West Kalimantan from 3,384 to 6,526. (29/08)

The situation has also affected areas beyond the fire locations. The source reported impacts on transportation, health, education, agriculture and plantations, trade, industry, tourism and economic productivity.

Kalimantan Forest Fires Continue as Palm Oil Industry Expands

The fire situation comes as palm oil remains an important economic sector in Kalimantan. Central Kalimantan has 2.164 million hectares of palm plantations, making it the province with the largest palm plantation area in Kalimantan based on the latest data cited in the source.

According to data from the Central Statistics Agency (BPS), Central Kalimantan ranked second nationally in palm plantation area after Riau in the data cited for 2022. Most of the province’s plantations, 88.28%, were managed by private companies.

Palm oil also has a significant role in the national economy. Indonesia produced 51.6 million tons of palm oil in 2025, up 7.5% from 48.16 million tons in 2024. Exports increased 9.5% to 32.3 million tons, worth US$35.8 billion.

Domestic consumption also rose 3.6% to 24.7 million tons. Biodiesel consumption increased 10.9% to 12.7 million tons, exceeding domestic food consumption since 2023.

The industry is expected to face a different supply-demand balance in 2026. Production growth is projected to remain below 2%, while the implementation of the B50 biodiesel mandate from July 2026 is expected to increase domestic CPO demand by 1.9 million tons compared with the 2025 B40 allocation. Total CPO demand for B50 is projected at around 14.6 million tons.

Central Kalimantan is also opening opportunities for palm oil downstream investment in 2026. The provincial government said the move is intended to strengthen the regional economy and increase the value of palm oil through processing industries.

Fires Affect Land, Air Quality and Economic Activity

WALHI recorded 34,262 hotspots and 33,837 hectares of burned land in Kalimantan from January to July 2026. West Kalimantan recorded 28,216.31 hectares of burned area by mid-2026, according to the source.

In Palangka Raya, the Regional Disaster Management Agency recorded 298 forest and land fire incidents, covering 261.41 hectares, between June 1 and August 19, 2026. Air quality in Banjarbaru, South Kalimantan, also reached the hazardous category because of haze. (19/08)

The Ministry of Forestry reported that fire-control operations remained active. As of August 29, there were 112 reports of forest and land fire incidents and hotspot ground checks across 11 provinces. Of these, 47 incidents had been declared extinguished, while 65 were still being handled.

Throughout 2026, Manggala Agni and related teams had carried out 4,682 fire-management operations, covering an accumulated area of 38,277.43 hectares.

The fires have also affected visibility and air quality. On August 29, visibility in Banjarmasin was recorded at 0.5 kilometers, while Pontianak and Jambi recorded 0.8 kilometers. Palangka Raya recorded three kilometers, and Pekanbaru recorded 2.5 kilometers, with smoky conditions reported in those cities.

Transportation was among the affected sectors. On August 19, 12 flights at Syamsudin Noor International Airport in Banjarmasin were delayed because of thick smoke.

Health impacts were also reported in Palangka Raya, where communities experienced health problems and increased complaints related to acute respiratory infections during periods of haze.

Education was affected as well. All education units from early childhood education to junior high school in Palangka Raya had to adjust learning activities when the air quality index reached 487.

Palm Oil Concessions Account for Hundreds of High-Confidence Hotspots

WALHI’s analysis identified a significant number of high-confidence hotspots inside company concessions in Kalimantan.

From January to August 2026, WALHI recorded 1,259 high-confidence hotspots inside company concessions in Kalimantan. Palm oil plantations accounted for 776 hotspots, while forestry concessions accounted for 483.

West Kalimantan recorded the largest number in both sectors, with 573 hotspots in palm oil concessions and 251 in forestry concessions.

In South Kalimantan, WALHI recorded 3,219 hotspots between May 1 and August 18. Of these, 304 hotspots, or 9.4%, were located inside or around palm oil concessions.

In Central Kalimantan, WALHI recorded 32,796 hotspots and estimated that an indicative area of 45,000–68,000 hectares had experienced forest and land fires. WALHI said around 38 company concessions involving palm oil plantations and forestry permits were affected.

However, the Ministry of Forestry has stressed that hotspot data does not automatically represent a confirmed fire. A hotspot is an indication of a surface-temperature anomaly detected by satellite, and one fire can produce several hotspot detections. Ground checks and monitoring of actual conditions are therefore required.

Forest Fires Can Create Significant Economic Losses

The economic impact of forest and land fires can extend beyond the burned areas. The source identifies transportation, health, agriculture and plantations, trade, industry, tourism, productivity and economic activity among the areas that can be affected.

The 2015 fires illustrate the potential scale of the economic impact. Around 2.6 million hectares of forest and land were burned that year, while President Joko Widodo estimated losses at approximately Rp220 trillion.

The losses included economic disruption from cancelled flights, closed offices and halted economic activities. Around 504,000 people also experienced health problems, particularly acute respiratory infections, during the same period.

The source does not provide a total economic-loss figure for the 2026 fires. However, with more than 202,000 hectares burned across Indonesia from January to July 2026, the ongoing dry season and the expected persistence of El Niño until early 2027, the source reports that the risk of losses to economic activity remains.

Government Seeks Corporate Accountability and Environmental Recovery

The government has continued to strengthen fire-control operations while pursuing legal action related to forest and land fires.

As of August 2026, the government was taking legal action against around 30 companies connected to forest and land fires. The government was seeking almost Rp15 trillion in claims for state losses and environmental recovery.

The claim consists of approximately Rp5 trillion for direct state losses and Rp10 trillion for environmental restoration costs. Environment Minister Mohammad Jumhur Hidayat said, “They must compensate the state for losses and finance environmental restoration.” (26/08)

The government said the legal action forms part of efforts to strengthen enforcement against illegal land burning. Companies found responsible are expected to contribute to ecosystem restoration.

In South Kalimantan, around 8,000 hectares had burned during 2026, according to the same report. The figure was significantly below the approximately 190,000 hectares burned during the severe 2023 dry season.

The government is also continuing field operations, including patrols, ground checks, firefighting, firebreaks, cooling operations and monitoring of areas that could reignite. Aerial support for water bombing and weather modification operations are also being prepared when meteorological conditions allow.

At the same time, WALHI has called for broader action, including evaluation of permits, corporate accountability, ecosystem restoration and stronger law enforcement. WALHI also said that peatland and forest restoration should become a central part of fire management rather than being limited to action after fires occur.

The palm oil industry itself is also facing sustainability and regulatory pressures. GAPKI identified environmental sustainability, RSPO compliance, European Union regulations, anti-palm oil campaigns, domestic demand from B50, CPO price volatility and competition from Malaysia and India among the industry’s challenges.

GAPKI said the industry is expected to move toward higher-value downstream products, stronger RSPO, ISPO and ESG certification, and green products such as bioplastics, bio-lubricants and renewable surfactants.

This article is a summary of two original articles. The full versions can be read at the following links:

https://gapki.id/news/2026/07/28/prospek-industri-sawit-indonesia-2026-dampak-kebijakan-baru-terhadap-pasokan-permintaan-dan-biaya/

https://www.kehutanan.go.id/news/data-terbaru-kemenhut-hotspot-di-kalsel-sumsel-riau-dan-jambi-turun

https://mmc.kalteng.go.id/berita/read/48121/perkebunan-kelapa-sawit-kalimantan-tengah-terbesar-kedua-di-indonesia

https://haisawit.co.id/news/detail/kalimantan-tengah-geser-kalimantan-barat-sebagai-pemilik-kebun-sawit-terluas-di-kalimantan

https://haisawit.co.id/news/detail/kalteng-buka-pintu-lebar-bagi-investor-hilirisasi-sawit-di-2026

https://kalteng.go.id/berita/read/42583/pemprov-kalteng-perkuat-tata-kelola-sawit-rakyat-melalui-bimtek-pendataan-tahun-2026

https://gankapital.com/id/artikel/dampak-ekonomi-karhutla-kalimantan-2026/

https://www.cnbcindonesia.com/research/20260824093442-128-761828/200000-lahan-hutan-ri-terbakar-tahun-ini-terburuk-sejak-kapan

https://www.idnfinancials.com/id/news/67929/kebakaran-hutan-indonesia-buru-rp15-triliun-dari-30-perusahaan

https://www.walhi.or.id/karhutla-sebagai-kejahatan-negara-korporasi

ILLUSTRATION: UNSPLASH

This article was created with AI assistance.

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