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Malaysia Weighs Legal Action Over Indonesia Wildfire Haze

Malaysia’s lawmakers raise compensation claims over Indonesian wildfire haze and press for an ASEAN task force as health and economic impacts mount.

By matthew jonathan
October 16, 20263 min read
Malaysia Weighs Legal Action Over Indonesia Wildfire Haze
DPR Malaysia Geram dengan Kabut Asap Karhutla Indonesia, Bakal Ajukan Tuntutan

KUALA LUMPUR — Malaysia could pursue compensation over smoke from Indonesian forest and land fires if Jakarta rejects a proposed ASEAN task force, Malaysian lawmaker Lim Guan Eng said. The threat puts a recurring regional health and environmental problem back on the diplomatic agenda, with Malaysia pressing for faster cross-border action.

Lim raised the proposal during debate on Malaysia’s 2027 budget in the Dewan Rakyat, the country’s lower house of parliament, on Thursday, Oct. 15, 2026. He called for a permanent unit involving Malaysia, Singapore, the Philippines and Indonesia, backed by rescue teams ready to respond when fires break out.

Malaysia pushes for a regional response

Lim, a former Malaysian finance minister, argued that a standing ASEAN team could help countries respond more quickly to fires whose smoke crosses national borders. He said Malaysia should consider legal action if Indonesia refuses the proposed arrangement on grounds of national sovereignty, and raised compensation as a possible course.

“The people of Malaysia cannot sit idly by without taking any action to address this haze crisis,” Lim said during the budget debate. Indonesian outlet VIVA cited his remarks from Malaysian news organization Sinar Harian.

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Lim said the affected area in Indonesia was claimed to have reached 300,000 hectares, which he described as more than 70% higher than in 2023. That figure is attributed to Lim in the report and was not independently confirmed there.

The consequences reach beyond diplomatic relations. Lim singled out gig workers and motorcycle-hailing drivers who may have to stop working when air quality becomes unhealthy. Smoke-related disruptions can also affect daily activity and add pressure to businesses and services that depend on people being able to travel and work outdoors.

Health and economic costs across borders

Another Malaysian lawmaker, Datuk Ali Biju, urged the government to examine international legal mechanisms for seeking compensation from those responsible. He also pointed to commercial plantation companies involved in open burning as potential parties to consider.

Ali, a former deputy minister of energy and natural resources, said recurring haze affects the health of millions of people across ASEAN. He also cited consequences for tourism, business, transportation and international sporting events.

The dispute therefore turns on more than air quality: it raises questions about who should bear the costs when pollution crosses borders and disrupts work, travel and public events. In Indonesia, the debate has also prompted calls to examine the fires through a public-health and rights lens.

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Willy Aditya, chairman of Indonesia’s House of Representatives Commission XII, called for the country’s Ministry of Human Rights to investigate fire locations with relevant agencies. Indonesian news agency ANTARA reported his comments during a Commission XIII working visit in Palembang.

ANTARA cited South Sumatra Health Office data showing 52,483 acute respiratory infection cases in September 2026. That was an 11.62% increase from August and the highest monthly figure in South Sumatra in 2026, the report said. The figures describe the health burden but do not, by themselves, establish the cause of each case.

Willy urged cooperation among the Ministry of Human Rights, Indonesia’s Witness and Victim Protection Agency, legal aid groups, environmental organizations and universities to examine fire sites that could affect residents. ANTARA reported that he argued forest and land fires should be treated as a matter of rights as well as an environmental issue.

Indonesia says formal response will come through diplomacy

Indonesia’s Deputy Coordinating Minister for Food Affairs, Hanif Faisol Nurofiq, said the foreign minister is responsible for issuing an official response to Malaysia’s call, according to CNN Indonesia. Hanif cited the extreme El Niño climate pattern as a factor behind the spread of fires, saying the causes were not solely human activity.

Hanif also referred to the environmental law principle that polluters are responsible for the damage they cause. He said Indonesia’s foreign minister would discuss the issue through ASEAN diplomacy, placing the haze dispute at the intersection of disaster response, public health and relations between neighboring countries.

For now, Malaysia’s proposal and compensation threat remain statements by lawmakers, while Indonesia has indicated that its formal response will be handled through the foreign ministry. “The foreign minister will discuss this matter through ASEAN diplomacy,” Hanif said.

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