Estimates of the cost of uncontrolled fires to the Indonesian economy differ, but are invariably large. Varma (2003) analysed the costs and benefits of slash-and-burn to the Indonesian economy and concluded that during 1997-1998 Indonesia lost US$20.1 billion as a result of this practice. Other sources estimate the lost amount to US$6 billion to U$9 billion.
Economic losses in heavily-affected rural villages can amount to as much as 50% of township income. Haze from the fires can extend to Malaysia, Singapore and Thailand, shrouding them in smoke and affecting transport and economic activities for millions more people, resulting in billions more dollars of economic losses. Clearly, the economic losses associated with uncontrolled fires are contributing to poverty and restraining development in the region.