If memory serves, they build a different giant statue each year, then burn it at the climax of the celebration. This year it just happened to be Santa.
In the city of Gävle, they traditionally build a huge Christmas goat every year. It's always burned to the ground by local pranksters intent on some serious IRL trolling.
Isn't a burning Santa effigy what Christmas is all about? Really, what's the difference anymore? All kids care about are the presents (me too), so if Santa's on fire, logic dictates that he'd give out presents faster...and then need extensive skin grafts to even remotely be in shape to set himelf on fire again next year.