Borneo's Orangutan Habitat Under Siege as Palm Oil Firm Clears UNESCO Biosphere Reserve

Indigenous Dayak communities in Borneo are raising urgent alarms as a palm oil company, PT Equator Sumber Rezeki (ESR), is actively clearing critical rainforest within a UNESCO Biosphere Reserve. This destructive activity is leading to significant wildlife encroachment, land grabbing, and the irreversible loss of vital cultural resources, as reported by news.mongabay.com on December 2, 2025.

ESR, a subsidiary of the Jakarta-based First Borneo Group, has already razed nearly 1,500 hectares of orangutan habitat in the Kapuas Hulu district of West Kalimantan province. This extensive deforestation, largely occurring in 2025, threatens the survival of the critically endangered Bornean orangutan and other species, according to a December 2, 2025 report by news.mongabay.com.

Despite corporate pledges for "zero-deforestation" supply chains, the parent group's palm fruit continues to enter global markets. Environmental groups highlight this contradiction, noting that First Borneo Group has a documented history of large-scale deforestation through its various subsidiaries, as detailed by Mongabay on April 29, 2025.

The affected region is the Betung Kerihun Danau Sentarum Kapuas Hulu Biosphere Reserve, designated by UNESCO in 2018 for its rich biodiversity and cultural significance. This area is crucial for both ecological functions and the traditional way of life of the Dayak people, as noted by UNESCO's Man and the Biosphere Programme.

Environmental organizations, including Mighty Earth and Auriga Nusantara, are urgently calling for government intervention to halt or revoke ESR's permits. They warn that continued clearing undermines Indonesia's climate commitments and poses an ecological disaster, mongabay reported on April 29, 2025.

The Indigenous Dayak communities are experiencing direct impacts, including the loss of ancestral lands and sacred sites, often with minimal or no compensation. Satya Bumi, an environmental watchdog, stated on September 25, 2025, that ESR's activities disregard both the environment and the local communities whose livelihoods depend on the forest.

• UNESCO Biosphere Reserve Significance: The Betung Kerihun Danau Sentarum Kapuas Hulu Biosphere Reserve, established by UNESCO in 2018, encompasses the Betung Kerihun and Danau Sentarum National Parks in West Kalimantan. This vast area, covering over 2.5 million hectares, is recognized for its exceptionally high biodiversity, including unique lowland and mountain tropical rainforests, and plays a vital role in maintaining the ecological balance of West Kalimantan, according to wikipedia and UNESCO.

• The Company and its History: PT Equator Sumber Rezeki (ESR) is a subsidiary of the First Borneo Group, owned by Indonesian tycoon Alexander Thaslim. mongabay reported on April 29, 2025, that First Borneo Group has a long track record of extensive deforestation across multiple concessions, making it one of Indonesia's most active deforesters. Previous deforestation by other subsidiaries, such as PT Borneo International Anugerah, led major palm oil buyers like Nestlé and Musim Mas to suspend sourcing from the group.

• Scale of Deforestation and Orangutan Threat: Satellite analysis cited by news.mongabay.com on December 2, 2025, indicates that ESR cleared 1,376 hectares of forest between January and August 2025 alone, a significant increase from 195 hectares in 2024. This clearing directly impacts the habitat of the critically endangered Bornean orangutan, with conservationists warning that ESR's plans could lead to the loss of up to 10,000 hectares of forest.

• Impact on Indigenous Dayak Communities: Indigenous Dayak communities, such as the Dayak Iban Menua Ngaung Keruh, are facing severe consequences, including land grabbing and the destruction of cultural and livelihood resources. Satya Bumi's Executive Director, Andi Muttaqien, stated on September 25, 2025, that these communities, whose traditional longhouses and sacred burial grounds are located in the affected area, have experienced land dispossession with inadequate compensation, sometimes as low as Rp300,000 (US$18) per hectare for agricultural land.

• "Zero-Deforestation" Pledges and Supply Chain Contamination: Despite numerous companies having "zero-deforestation" commitments, First Borneo Group's palm fruit continues to enter global supply chains. Mighty Earth reported on September 26, 2025, that First Borneo's Kapuas Hulu plantations sell palm fruit to mills that, in turn, supply refiners with deforestation-free pledges, highlighting a persistent challenge in ensuring truly sustainable palm oil.

• Environmental Advocacy and Calls for Action: Environmental groups like Mighty Earth and Auriga Nusantara are actively campaigning for the Indonesian government to intervene. They are urging authorities to halt or revoke ESR's permits and to protect the orangutan-rich landscape, emphasizing that the ongoing destruction undermines Indonesia's biodiversity and climate goals, as reported by news.mongabay.com on December 2, 2025.

• Broader Context of Palm Oil Deforestation in Borneo: Deforestation in Borneo, largely driven by palm oil expansion, has led to a loss of over 40% of its tropical forests since 2000, according to the Liverpool Echo on November 30, 2025. While Indonesia has seen a decline in overall deforestation rates for palm oil in recent years, the current situation with ESR indicates a resurgence of commodity-driven deforestation, posing a significant threat to the island's unique ecosystems and critically endangered species.