Malaysian investors in the Indonesian oil palm plantation sector: home state facilitation and transboundary haze

This paper analyses the regionalization of Malaysian oil palm plantation firms into Indonesia. These firms have been implicated in starting fires to clear land for planting, which has resulted in transboundary haze. This paper argues that these Malaysian investors have been able to burn with impunity, despite the dire consequences of haze on their home country, because of the close patronage relationships and vested interests of the Malaysian government elites in these companies. Because of this, the home government is inclined to protect and defend the actions of these firms in Indonesia against such allegations, while the Malaysian public continues to suffer the haze.