The Burning Man is a monument located in western Lovakengj, just south-west of the Xeric's Inferno teleport. Speaking with Barus during the Desert Treasure II quest reveals that the wooden structure was first erected during the Zarosian age, thousands of years before Kourend was ever a kingdom. The dwarves who had settled there were threatened by the evil coming from the Stranglewood, south of the area; after their victory over the evil, they created the statue, and it has burned to this day.
If you examine the fire around the monument, it says "Burn Me!".
Trivia
- The name "Burning Man" and the burning of a giant wooden man is a reference to Burning Man, an annual event in the Nevada Desert where as many as 100,000 people gather and burn wooden statues, symbolic items, and even their trash.