The paper, considers the remedial action necessary to combat the disaster being experienced by Southeast Asian countries as a result of the fires and smoke in 1997-98. The strategy depends on the answers to three issues: the causes of the problem; the answers and remedies; and what is the appropriate role of nations and agencies outside Indonesia. The emphasis here is on the link between economics and environment, leading towards sustainable development, a linkage deemed controversial in an ASEAN context. Arguing that there is no other way to bring sufficient priority and attention to the issue in Indonesia, it centres on positive economy-environment links rather than on sanctions. The Indonesian disaster is viewed both within the national and the ASEAN context. Nationally, Indonesia has failed to ensure compliance with its existing laws, develop sufficient capacity to deal with fires and shape and change land use for sustainability. Therefore law-enforcement agencies must be activated, law enforcement must be equal and even, ambiguous land rights must be examined and plantations developed in degraded forest or 'alang-alang' (wild grass) fields. ASEAN is identified as having a legitimate interest, which they can implement by targeting aid and private funds at environmental problems caused by the fires.