As the third largest island in the world, Borneo Island is home to three different countries: Indonesia, Malaysia, and Brunei. Borneo’s economy is dependent on their abundant natural resources; Exports like oil, timber, palm oil, rubber, coffee, rice, tobacco, sago, coconuts, pepper, sweet potatoes, and sugarcane all support the island’s population of over 18 million people.
However, these resources are both a blessing and a curse: while reaping profits for the region, harvesting these natural resources is costing of the very ecosystems that make these resources possible. Deforestation is a pervasive problem, especially while harvesting timber and palm oil. Peat fires are the go-to method for clearing out forests in Borneo, causing massive loss of habitats while producing air pollution harmful to humans.
The problems are well-documented. But here at Invest SEA, we strive to focus on solutions. While sustainable efforts are already in motion, what the region really needs is investors who understand that profit isn’t the only bottom line. On an island as bountiful as Borneo, taking care of the environment is just as, if not more, important than the natural resources it gives us.
The sooner we can implement environmentally-conscious solutions in Borneo, the better. This is because in 2019, Indonesia announced it would be moving the capital city from Jakarta in Java, to a yet-to-be-built new capital in Borneo: Kalimantan. With a supposed completion date in the upcoming years, new structures need to be rooted in the preservation of the environment.
The Solutions
Indonesian police are investigating three palm oil companies for their roll in starting forest fires in Borneo. The Ministry of the Environment and Forests are also investigating 24 other companies for their role in forest fires on the island. According to The Ministry, in the January-July period this year, 135,747 hectares of land has been burned across the country, compared with 72,115 hectares in 2018. This accelerated pace has clearly caught the attention of authorities who are moving to hold corporations accountable.
Working in tandem with the government, grassroots groups like The Borneo Project call attention to harmful business practices taking advantage of the island. This group emphasizes the provision of indigenous groups in Borneo’s rainforests as stewards of the environment. The Borneo Project’s Baram Heritage Survey is an indigenous-led scientific study focused on safeguarding the rainforest environment of Borneo as well as the indigenous groups who call it home.
Between grassroots efforts and public sector investigations of bad actors, there seems to be a new day rising in Borneo: one where the people and the authorities will no longer tolerate non-sustainable business practices. It’s up to new investors to take their place and ask themselves, what can they do differently?
