Indonesia's third-largest province declared a state of emergency from Wednesday after identifying more than 700 fires, as the Southeast Asian nation braces for its annual fire season.

The declaration comes as Indonesia scales back protection for some of the world's most important tropical forests.The team that identifies fires and helps put them out has seen its budget halved due to the economic impact of the coronavirus, an environment ministry official said.

The province of Central Kalimantan said the state of emergency will run until Sept. 28. The level of emergency is at the first alert stage which calls for increased patrols and early extinguishing efforts.

"Efforts to mitigate forest fires are underway because almost every region in Central Kalimantan entered the dry season in July," said Alpius Patanan, an official with province's disaster mitigation agency.

The budget cuts could result in more dangerous fires and communities left to fight them on their own, Indonesia's head of the Greenpeace forests campaign Kiki Taufik said.

Indonesia is the world's largest producer of palm oil and each year fires are linked to slash-and-burn practices used to clear areas for palm oil cultivation. Last year's fires were particularly damaging, with 1.6 million hectares of forest and peatland burned.

Much of the country's palm oil is grown in forest-rich Kalimantan, also known as Indonesian Borneo as well as on the island of Sumatra.

Environmentalists say Indonesia's palm oil industry is one of the leading drivers of deforestation that is also damaging the habitats of endangered species such as Sumatran tigers and the Bornean orangutan.