20/08/ 2005 PEKAN BARU (The Star) - A big Malaysian-owned oil palmplantation in Riau, Sumatra implicated by Indonesia for open burning hascome out to strongly deny the allegations.

Giving The Star access to three of its estates spanning over 13,000ha, thecompany's general manager, who declined to be named, said the plantationadministrators had adhered to the company's strict environmental policy ofzero burning.

"Our trees are fully planted. There is no land clearing - not in the past,not now and not in the future."

"The fires found on the estate boundaries were started by villagers orsmallholders," he said in an interview at the oil palm plantation in theRokan Hilir area more than 200km from here.

When the plantation’s fire patrol team tried to put out the fires burningon neighbouring lands, they found their help unwelcome.

"The villagers set fire to clear the land. So when we try to put it out,they come after us with parangs," said one of the estate managers.

This is a grave problem for the Malaysian plantations here because peatfires spread easily. If there is a strong wind, sparks can be blown overand ignite the prized oil palms.

The plantation experienced two such fire encroachments recently " thefirst on Aug 13 and the second on Tuesday.

"The fire was discovered immediately and put out by our fire patrol team,"said the general manager.

Despite quick action, the company "lost" several mature palms that werestill within their economic lifespan.

On Wednesday during our visit to the plantation, the fires in theneighbouring lands were still smouldering and no one was dousing them.

It is estimated that more than 97,000ha of peat land have been burning inRokan Hilir, Rokan Hulu and other parts of Riau, Sumatra.

Indonesia claimed that Malaysian oil palm plantations were responsible,even though only 16% of the hotspots were in oil palm estates - most ofwhich Indonesian owned.

Malaysian plantations also face another dilemma - squatters.

One big Malaysian oil palm plantation with 25,000ha of land in Sumatra hassquatters occupying 20% of its land.

A spokesman for the company said: "We cannot chase them out. They claimthe land is theirs. Everyone there is burning land to clear it; and theauthorities are not stopping them."