By Daniel Perez – News Editor
Singapore recorded Rp278.5 trillion in foreign direct investment realizations in Indonesia in 2025. Yet that massive economic footprint is colliding with an intensifying environmental crisis. On October 28, 2026, Singapore summoned executives from 10 companies to The Treasury building to investigate corporate links to forest and land fires in Indonesia that triggered severe cross-border haze.
Retaliatory Gas Cuts and Police Probes
The high-level regulatory push follows a sharp escalation in bilateral tensions. The Indonesian government cut natural gas exports to Singapore by 31 billion British thermal units per day starting October 24, 2026. This reduction coincides with heightened diplomatic friction and ongoing police investigations in Indonesia into 98 corporate reports connected to suspected involvement in land clearing fires.
Senior Minister K Shanmugam emphasized that the regional haze is the direct result of deliberate business practices rather than natural weather patterns. The government intends to utilize all available legal and regulatory avenues to identify accountable parties, according to Shanmugam, who chairs the Ministerial Committee for Domestic Crisis Management.
Singapore Prepares Haze Pollution Act Amendments
Singaporean officials announced plans to introduce amendments to the Transboundary Haze Pollution Act during the next parliamentary session. Grace Fu told journalists after the October 28 meeting that the legal changes will compel corporations to cooperate fully with independent investigators. Companies that refuse to appoint independent examiners or withhold cooperation will face criminal prosecution under the updated legal framework.
“I will introduce amendments to the Transboundary Haze Pollution Act at the next parliamentary sitting so that this framework has legal force. Companies that do not comply will be considered to have committed a criminal offense. We will use our powers to protect the health of Singaporeans,” Fu stated.
Bilateral Task Force Targets Supply Chains
The diplomatic friction prompted high-level bilateral talks in Jakarta between Arrmanatha Nasir and Vivian Balakrishnan. The two nations agreed to establish a joint task force to pool intelligence, track financial trails, and gather cross-border evidence against culpable corporations.
Indonesian police investigators are currently examining 98 corporate reports connected to land and forest fires, having already identified three foreign companies under suspicion. Minister Arrmanatha stated during the bilateral meetings that no geographic borders should protect entities that profit from environmental destruction.
Companies Agree to Independent Audits
Representatives from Asia Pulp & Paper and Golden Agri-Resources attended the Singaporean government briefing. Franky Oesman Widjaja, Chairman and CEO of Golden Agri-Resources, also represented Asia Pulp & Paper Company and Asia Pulp & Paper Company (China).
Following the meetings, Asia Pulp & Paper and Golden Agri-Resources issued separate statements confirming their willingness to cooperate with Singaporean authorities. Representatives for the firms agreed to undergo independent audits of their operational activities, corporate structures, and supply chains to determine whether their networks contributed to the fires.
Diplomatic Channels Tested Amid Crisis
Former Indonesian Ambassador to Singapore Suryopratomo noted that both nations previously maintained strong diplomatic channels, including a joint hotline for rapid bilateral communication through recent years. Even as current friction strains those ties, the extensive economic networks linking the two countries remain under intense scrutiny as investigators trace the origins of the destructive fires.
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