Forest fires and haze have become an annual problem for Indonesia. During the dry season, forest fires always occur, especially in Sumatra and Kalimantan. Haze covers the sky; causes problems for the transportation sector; reduces economic activities; and stimulates health problems.
The problem has not only become a domestic affair but also affects Indonesia’s reputation in other countries. Singapore and Malaysia are two of the most adversely affected foreign countries due to the smog generated from the forest fires. This is called negative externalities by economists.
We might still remember how the Malaysian government sent hundreds of fire squads, called “Bomba”, to help Indonesia to fight forest fires in 1997. The forest fire tragedy that year was one of the worst forest fires in Indonesian history, in which the smog even reached Thailand and the Philippines.