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1 Public Disclosure System as an effective tool for pollution control The Implementation of PROPER in Indonesia Hermien Roosita The Ministry of Environment,

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Presentation on theme: "1 Public Disclosure System as an effective tool for pollution control The Implementation of PROPER in Indonesia Hermien Roosita The Ministry of Environment,"— Presentation transcript:

1 1 Public Disclosure System as an effective tool for pollution control The Implementation of PROPER in Indonesia Hermien Roosita The Ministry of Environment, Indonesia Paris, 2-3 December 2004

2 2 Environmental Management in Indonesia Shifting from end-of-pipe to clean production No regulation No environmental institution Lack of government & corporation interest End of pipe management Environmental regulation Government intervention Clean production Public Disclosure System Economic instruments Integrated environment management Ecological efficiency Partnership between government & corporation PRESENT FUTURE

3 3 Environmental Compliance Implementation a.Monitoring tools for Industrial Pollution Control : PROKASIH, Blue Sky Program, Hazardous Waste Management Program b.Litigation 7 steps for dispute resolution : Surveillance for information and data collection Surveillance for information and data collection Investigation for evidences Investigation for evidences Legal brief Legal brief Trial Trial Appeal to high court Appeal to high court Appeal to supreme court Appeal to supreme court

4 4 Weak monitoring system : Human resources capacity Financial supports Lack of coordination between agencies. Lack of knowledge on environmental issue by stakeholders. Weak monitoring system : Human resources capacity Financial supports Lack of coordination between agencies. Lack of knowledge on environmental issue by stakeholders. Current Situation: Good Environmental Law But Weak Implementation Current Situation: Good Environmental Law But Weak Implementation

5 5 Alternative solutions for industrial pollution control NGO and community have function as a watch- dog to control industrial activities. ISO –A–A voluntary scheme for companys environmental management system. –A–A commitment to improve environmental performance of companies. –I–ISO does not reflect a real companies environmental performance Public Disclosure system (PROPER) –A–An instrument to improve industries environmental performance through information dissemination to public.

6 6 Distribution of Industries 1.Crumb Rubber 2.Coal Mining 3.Petroleum Refined 4.Plywood 5.Adhesive 1.Paper 2.Textile 3.Rayon 4.Mining 5.Automotive 6.Cement 7.Petrol Chemical 8.MSG 9.Consumer goods 10.Fertilizer 11.Pharmacy 12.Electronic 13.Chemical Industry 14.Food & Drink 15.Electro Plating 16.Sugar 17.Leather Tanneries 18.Lubricating Oil 19.Basic Chemical 20.Iron & Steel Smelting Industry 21.Petroleum Refined 22.Recycling 23.Cigarettes 1.Pulp & Paper 2.Crumb Rubber 3.Crude Palm Oil 4.Coal Mining 5.Sugar 6.Tapioca 7.Petroleum Refined 8.Cement 9.Fertilizer 10.Sugar 1.Gold Mining 2.Ferro Nickel 3.Copper 4.Cement 1.Gold Mining 2.Ferro Nickel 3.Copper

7 7 What is PROPER PROPER (Program for Pollution Control, Evaluation and Rating) is an alternative instrument to control pollution based on sustainable development principle through environmental compliance and performance of companies improvement in environmental management through the introducing disincentive and incentive reputation by disclosing environmental performance of industries to public and stakeholders. ?

8 8 PROPER RATING SYSTEM PROPER rating system consists of five colors designed to represent the entire spectrum of environmental performance. -Ratings are based on performance in all aspects of environmental management within and outside a company -Unlike PROPER 1995, PROPER 2003 methodology includes water, air and hazardous waste and other factors. GOLD GREEN BLUE RED BLACK No pollution control effort, Serious environmental damages Efforts meet minimum legal standards Better than legal standards by 50%, uses clean technology, waste minimization, pollution prevention, and resource conservation Pollution level 5% of the legal standards and near zero emissions level Efforts dont meet standards

9 9 National Environmental Act Mandates Information Dissemination to the Public Environmental Management Compliance Monitoring Companies obligation for information dissemination Community Right for participation in environmental management Right on environmental information KEY WORDS ActNo. 23/1997 Article 22 (1) Act No. 23/1997 Article 5 (2) Act No. 23/1997 Article 5 (3) Act No. 23/1997 Article 7 (1) Act No. 23/1997 Article 6 (1)

10 10 PROPERs Core Strategy-Strengthen Environmental Politics u How to create public demand for cleaner environment? Empower external stakeholders Public Disclosure NGOsCommunitiesMediaBusiness Empower NGOs with superior information Legitimize public perception about env. issues Promote social responsibility & educational journalism Establish credibility and strategic alliance Local Govt. Recognize and reward high performance local agencies

11 11 Rating Methodology : RATING ISSUES 1.Compliance with water pollution regulations 2.Compliance with air pollution regulations 3.Compliance with hazardous waste management regulations 4.Compliance with AMDAL (EIA requirements) 5.Quality of environmental management system 6.Resource management and use 7.Community development and relationship Environmental ratings are based on performance in seven areas:

12 12 PROPERS 4 PRINCIPLES TRANSPARENCY PUBLIC PARTICIPATION ACCOUNTABLE FAIRNESS

13 13 Rating Analysis Qualitative Information Quantitative Analysis Visual Analysis

14 14 New Implementation Approach: Strong Local Participation Regular Monitoring Sampling Evaluation Database system Involvement of Provincial and District/City level

15 15 PROPER Supports Strategic Policy Analysis Sector Benchmarking Province Level Benchmarking Analysis of Key Performance Weaknesses Set National Targets

16 16 COMMUNICATION STRATEGY Disclosure of companies rating : Press Conference Information of the PROPER : Booklet Leaflet Socialization to local governments and industries

17 N U M B E R O F I N D U S T R I E S PROPER BlackRedBlueGreenGold

18 18 Administration cost of programs 61,400 / 43 industries = US$ 2,362/industry 31,400/ caseTOTAL 38,000 5,600 1,100 5,500 Inspection and laboratories analysis Coordination meeting Dewan PROPER Peer Review Press briefing 4,000 8,000 2,800 11,000 2,800 Surveillance Investigation Legal brief Trial Appeal to high court Appeal to supreme court US$DescriptionUS$Description PROPER **)Litigation *) No *) Cost needed for litigation for an environmental pollution case **) Cost needed for PROPER to evaluate 43 manufacture industries

19 19 ADMINISTRATION COST Budget of US$ 31,400 must be provided in order to resolve an environmental case, not to mention the long period of time to go through. Cost needed by PROPER to increase the environmental performance of one industry is approximately US$ 2,362 (60% of 43 manufacture industries has improved its performance).

20 20 Compliance cost Pollution control equipment investment from a pulp and paper industry US$ 11.2 millionTOTAL US$ 5.6 million Solid waste (landfill and remediation) US$ 0.6 million Air emission (Continuous Emission Monitoring) US$ 5.0 million Wastewater

21 21 Limitation PROPER is only effective for large scale companies because they are concern with the image to market. PROPER cannot apply to all scale of industries.

22 22 SUMMARY Based on administration cost approach, PROPER is a more effective program to be carried out compared to litigation. PROPER is especially effective for large scale industries. PROPER is a complementary instrument in controlling pollution to other environmental law enforcement programs. Indonesia still needs strong environmental agencies.


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