Johor defends JCorp amid claims over Indonesian forest fires

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Johor defends JCorp over fire allegations

Highlights

JCorp and the Johor government have denied allegations of involvement in Indonesian forest fires, saying the claims are based on misleading information.
JCorp says no companies in its group own or operate plantations outside Malaysia, after Kulim Bhd divested its interests in Indonesia in 2007 and on 6 July 2023.
A WALHI report alleges that 21 companies linked to Malaysian entities were involved in Indonesian forest fires between January and September 2023, adding pressure on governance in the plantation sector.

This article was translated from the original. Read the original version by our correspondent here.

Official explanation and asset divestment record

As reported by The Edge Malaysia, Onn Hafiz, who is also JCorp chairman, said no one should exploit the situation by distorting facts and creating the impression that the state-owned investment institution was involved in the incidents. He said the state government would continue to defend JCorp's integrity, credibility and reputation against baseless allegations.

In the statement, he said claims linking JCorp to current ownership or operations of the companies in question, as well as to forest fires, were false and misleading. JCorp has also clarified that companies in its group do not own or operate any plantations outside Malaysia.

He said Kulim (Malaysia) Bhd, through its subsidiaries, divested its interests in five plantation companies in Indonesia in 2007 and sold its entire equity stake in two other Indonesian companies on 6 July 2023.

Implications for the reputation and regional plantation sector

On Wednesday, JCorp issued a statement denying allegations linking it to plantation companies in Indonesia that were claimed to have connections to forest and land fires. The denial followed a report published by the non-governmental organisation Wahana Lingkungan Hidup Indonesia, or WALHI.

WALHI recently alleged that 21 companies linked to Malaysian business entities were involved in forest and land fires in Indonesia between January and September this year. The findings were disclosed in a report titled "Actor Mapping Analysis: Who Are Behind the Fires?" published by the organisation's National Executive Body.

The case keeps the spotlight on cross-border governance in the plantation industry, particularly when historical ownership ties and current operations become central to assessments of corporate responsibility. For JCorp and the Johor government, the emphasis on the asset divestment record provides the basis for rejecting any link between current operations and fires in Indonesia.

In our earlier coverage of the 2027 Budget debate and the use of GLCs/GLICs to fund non commercial projects, we examined concerns that government directives—such as increasing dividends, divesting assets or raising funds—could weaken the financial position of the entities concerned. The article also outlined proposals to require written instructions, full-cost calculations and annual disclosures for such commitments, to protect contributors' and beneficiaries' interests and ensure transparency around mandates and responsibilities.

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