In brief
Between July and October 2026, the Nusantara Capital City Authority (OIKN) reported that 1,600 hectares of forest and land in the planned IKN area were burned, attributing the fires to deliberate land clearing by palm‑oil company PT AJP. Field mapping and satellite imagery revealed a rectangular burn pattern, leading OIKN to impose administrative sanctions on PT AJP and to intensify monitoring and reforestation efforts across concession holders. The investigation is being handled by police, with OIKN coordinating with environmental ministries on further follow‑up.
Balikpapan, East Kalimantan, October 31 2026 – The Nusantara Capital City Authority (OIKN) announced that 1,600 hectares of forest and land within the IKN planning area were burned between July and October 2026, attributing the devastation to deliberate land‑clearing by palm‑oil company PT AJP, which is facing administrative sanctions.
Myrna Asnawati Safitri, OIKN Deputy for Environment and Natural Resources, said the fires were not random but followed a distinct rectangular or elongated pattern, consistent with systematic clearing. “Even in several locations after the fires, new plant seedlings, such as oil palm and banana trees, were found. This pattern of cutting vegetation and then burning it is a common and recurring tactic,” she explained on Saturday.
According to OIKN, approximately 900 to 1,000 hectares of the burned land fell within the Bukit Soeharto Forest Park (Tahura), a protected area southwest of the IKN site, while about 500 hectares were located inside PT AJP’s concession and the remaining portions were on privately owned land. Field mapping and satellite imagery confirmed that the hotspots monitored by OIKN’s system since early August matched the wall‑like shapes expected from controlled burns.
In response, OIKN has coordinated with law enforcement to investigate the perpetrators, with the investigation ultimately being handled by the police. For private‑sector involvement, Myrna said her office imposed an initial administrative sanction on PT AJP – a written warning followed by a government order requiring land restoration. Failure to comply could lead to suspension or revocation of business permits.
“We are imposing administrative sanctions in stages, beginning with written warnings and ending in government orders requiring land restoration. Failure to fulfill these obligations may result in the suspension or revocation of business permits,”Myrna noted.
OIKN’s findings were forwarded to the Ministry of Environment and the Ministry of Forestry for coordinated follow‑up, and the agency is tightening field monitoring and demanding that all concession holders improve fire‑preparedness systems across their areas. The authority also plans to accelerate reforestation efforts on the 1,600 hectares burned, focusing on native species and restoration of native ecological communities.
While the investigation focuses on PT AJP, the OIKN reports that dozens of other companies hold concessions that cross the IKN and Kutai Kartanegara District administrative boundaries. The authority’s intent is to ensure that all operators within the IKN area comply with environmental standards as the new capital’s development proceeds.
The incident underscores a broader concern for the region’s biodiversity, particularly in the forests surrounding Bukit Soeharto. The park is home to diverse plant and animal species that could be affected by repeated fires and land clearing. OIKN’s announcement was made public amid growing scrutiny of palm‑oil expansion efforts in Indonesia’s eastern provinces, where many indigenous communities rely on forest resources for sustenance and cultural practices.
Experts have highlighted the need for robust enforcement of environmental regulations. OIKN’s decision to impose administrative sanctions reflects a shift toward stricter oversight of concession holders. However, the authority will also be working with local stakeholders, including community representatives, to strengthen fire‑preparedness and land restoration, ensuring that future capital development does not repeat past ecological disruptions.
As investigations continue, OIKN remains committed to restoring the burned areas and preventing further deliberate fires. The agency’s monitoring system, which integrates satellite imagery and field assessments, should provide a more reliable basis for swift responses to potential future incidents in the IKN area.
