Palm oil is one of the world’s most produced and consumed oils. This cheap, production-efficient and highly stable oil is used in a wide variety of food, cosmetic and hygiene products, and can be used as a source for biofuel or biodiesel. Most palm oil is produced in Asia, Africa and South America because the trees require warm temperatures, sunshine and plenty of rain in order to maximize production. In Indonesia, PT Perkebunan Nusantara as one of the companies owned by Government who specialized operating the palm oil production was challenged by the controversial cases in Sumatra. The case arises after the land clearing activities for the palm oil plantation that caused haze spread throughout several countries in Southeast Asia.


The land clearing cases in Sumatra island causes multiple adverse impacts to the environment, surrounding society, and to the business, itself. The 2015 Southeast Asian haze was an air pollution crisis affecting several countries in Southeast Asia. It was caused by PTPN from illegal slash-and-burn practices to open new palm oil plantation due to land clearing, principally on the Indonesian islands of Sumatra and Kalimantan, which then spread quickly in the dry season. This case has been the worst disaster not only for Indonesia but also other countries surrounded.