Asia & Middle East: View from Indonesia: Farmers’ burning ambition causes problems

Generous government incentives have got Indonesian palm oil plantation companies hooked on biodiesel production in a big way. Attractive export prospects aside, this is good news because it sets the world's second-largest palm oil producer on the way to the use of greener fuel, improving air pollution in Indonesia's cities. However, for the country's neighbors, the expected jump in new palm oil plantations presents a dark side. In recent weeks, a thick haze has enveloped Singapore and cities in Malaysia as Indonesian farmers and palm oil plantation Companies start fires to clear land for planting. Most of the land cleared is used for the cultivation of oil palm. While the forest fires are an annual problem, they are likely to intensify with the biodiesel frenzy. Earlier in 2006, the Indonesian government invested $22 billion to promote the use of alternative fuels using crops such as palm oil, and attract investors. Clearing land using the slash-and-burn method is cheap, but the cost to the region's economies, human health, and bilateral relations is not. The Singaporean and Malaysian governments have urged Indonesia to enforce laws to curb the perpetrators.