First Borneo Group has been implicated in large-scale deforestation activities within the Betung Kerihun Danau Sentarum Biosphere Reserve in West Kalimantan, a UNESCO-recognized biosphere. 

According to satellite imagery and reports, the company's subsidiary, PT Equator Sumber Rezeki (ESR), has cleared 1,548.18 hectares of land between 2024 and August 2025, an area equivalent to about 2,000 football fields. The ongoing deforestation poses a serious threat to endangered species, including the Bornean orangutan, whose habitat overlaps with the affected areas.

Andi Muttaqien, Executive Director of Satya Bumi, an environmental watchdog, said the activities of PT ESR have disregarded both the environment and local communities, particularly indigenous groups whose livelihoods depend on the forest. The deforestation is occurring within critical orangutan habitat and threatens the ecological balance of the Betung Kerihun Danau Sentarum Biosphere.

“In addition to PT ESR, First Borneo Group operates several other palm oil subsidiaries in Kapuas Hulu, including PT Borneo International Anugerah and PT Kalimantan Agro Abadi. These subsidiaries have allegedly been involved in significant deforestation, with PT Borneo International Anugerah alone losing 2,022 hectares of forest in 2024, a sharp increase from the previous year,” Andi said as quoted in a statement on Wednesday, September 25, 2025.

The deforestation activities have also encroached on indigenous lands, including the Dayak Iban Menua Ngaung Keruh community in the village of Labian. These indigenous people, whose traditional longhouses and sacred burial grounds are located in the affected area, have faced land dispossession with little to no compensation. Reports indicate that the company offered just Rp300,000 (US$18) per hectare for agricultural land, with no compensation for sacred sites like ancient tombs and traditional gardens.

The deforestation also threatens the balance of the local ecosystem, which provides essential resources to surrounding communities, such as medicinal plants, timber, and food. The cleared land further exacerbates the risk of habitat loss for biodiversity, with wildlife corridors becoming fragmented.

Moreover, despite the ongoing deforestation, the First Borneo Group has failed to demonstrate transparency or accountability in its operations. There is no public record of the company's commitment to No Deforestation, No Peat, No Exploitation (NDPE) policies, a standard that most global palm oil refineries have already adopted. As a result, the environmental and social risks associated with First Borneo's activities remain high.

Andi Muttaqien emphasized the urgency of action: "This situation serves as a wake-up call for the Indonesian government, both at the national and local levels, to improve natural resource governance and enforce stricter environmental regulations. The rights of indigenous people and the sustainability of the region's biodiversity must not be sacrificed for corporate profit."

The civil society coalition, including Satya Bumi, WALHI Kalimantan Barat, and others, has called for the immediate cessation of all deforestation activities by PT ESR and its subsidiaries in the region. They demand that the Indonesian government enforce stricter regulations and ensure transparency and accountability in corporate operations, particularly in relation to human rights and environmental protection.