Presentation on theme: "The Ministry of Environment, Indonesia"— Presentation transcript:
1 The Ministry of Environment, Indonesia Public Disclosure System as an effective tool for pollution control The Implementation of PROPER in IndonesiaHermien RoositaThe Ministry of Environment, IndonesiaParis, 2-3 December 2004
2 Environmental Management in Indonesia Shifting from end-of-pipe to clean productionNo regulationNo environmental institutionLack of government & corporation interestEnd of pipe managementEnvironmental regulationGovernment interventionClean productionPublic Disclosure SystemEconomic instrumentsIntegrated environment managementEcological efficiencyPartnership between government & corporation19821995PRESENT1234FUTURE
3 Environmental Compliance Implementation Monitoring tools for Industrial Pollution Control : PROKASIH, Blue Sky Program, Hazardous Waste Management ProgramLitigation7 steps for dispute resolution :Surveillance for information and data collectionInvestigation for evidencesLegal briefTrialAppeal to high courtAppeal to supreme court
4 Current Situation: Good Environmental Law But Weak Implementation Weak monitoring system :Human resources capacityFinancial supportsLack of coordination between agencies.Lack of knowledge on environmental issue by stakeholders.
5 Alternative solutions for industrial pollution control NGO and community have function as a “watch-dog” to control industrial activities.ISOA voluntary scheme for company’s environmental management system.A commitment to improve environmental performance of companies.ISO does not reflect a real companies’ environmental performancePublic Disclosure system (PROPER)An instrument to improve industries’ environmental performance through information dissemination to public.
7 ?What is PROPERPROPER (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 PROPER RATING SYSTEM 2002 GOLD GREEN BLUE RED BLACK Pollution level 5% of the legal standards and near zero emissions levelPROPER 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 companyUnlike PROPER 1995, PROPER 2003 methodology includes water, air and hazardous waste and other factors.GOLDBetter than legal standards by 50%, uses clean technology, waste minimization, pollution prevention, and resource conservationGREENBLUEEfforts meet minimum legal standardsREDEfforts don’t meet standardsNo pollution control effort,Serious environmental damagesBLACK
9 National Environmental Act Mandates Information Dissemination to the Public Environmental Management Compliance MonitoringCompanies’ obligation for information disseminationCommunity Right for participation in environmental managementRight on environmental informationKEY WORDSActNo. 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 PROPER’s Core Strategy-Strengthen Environmental Politics How to create public demand for cleaner environment? Empower external stakeholdersPublic DisclosureNGOsCommunitiesMediaBusinessLocal Govt.Empower NGOs with superior informationLegitimize public perception about env. issuesPromote social responsibility & educational journalismEstablish credibility and strategic allianceRecognize and reward high performance local agencies
11 Rating Methodology : RATING ISSUES Environmental ratings are based on performance in seven areas:Compliance with water pollution regulationsCompliance with air pollution regulationsCompliance with hazardous waste management regulationsCompliance with AMDAL (EIA requirements)Quality of environmental management systemResource management and useCommunity development and relationship
12 PROPER’S 4 PRINCIPLES FAIRNESS ACCOUNTABLE PUBLIC PARTICIPATION TRANSPARENCY
13 Qualitative Information Rating AnalysisQualitative InformationQuantitative AnalysisVisual Analysis
14 New Implementation Approach: Strong Local Participation Involvement of Provincial and District/City levelRegular MonitoringSamplingEvaluationDatabase system
15 PROPER Supports Strategic Policy Analysis Sector BenchmarkingProvince Level BenchmarkingAnalysis of Key Performance WeaknessesSet National Targets
16 COMMUNICATION STRATEGY Disclosure of companies’ rating :Press ConferenceInformation of the PROPER :BookletLeafletSocialization to local governments and industries
17 PROPER60515040333032NUMBER OF INDUSTRIES302523202014888103200220032004BlackRedBlueGreenGold
18 Administration cost of programs NoLitigation *)PROPER **)DescriptionUS$DescriptionUS$1234567SurveillanceInvestigationLegal briefTrialAppeal to high courtAppeal to supreme court4,0008,0002,80011,000Inspection and laboratories analysisCoordination meetingDewan PROPERPeer ReviewPress briefing38,0005,6001,1005,500TOTAL31,400/ case61,400 / 43 industries= US$ 2,362/industry*) Cost needed for litigation for an environmental pollution case**) Cost needed for PROPER to evaluate 43 manufacture industries
19 ADMINISTRATION COSTBudget 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 Compliance costPollution control equipment investment from a pulp and paper industryWastewaterUS$ 5.0 millionAir emission(Continuous Emission Monitoring)US$ 0.6 millionSolid waste(landfill and remediation)US$ 5.6 millionTOTALUS$ 11.2 million
21 LimitationPROPER 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 SUMMARYBased 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.