Compliance and Enforcement Priorities and Successes in Indonesia 2008 AECEN Regional Forum November 25, 2008 Bali, Indonesia Rosa Vivien Ratnawati MINISTRY OF ENVIRONMENT REPUBLIC OF INDONESIA

Indonesia at a Glance Indonesia – archipelagic country with more than 18,000 islands 35 provinces, 448 regencies/cities 2005: total population 219M, only 47M living in urban areas By 2025: total population 274M, with187M projected to live in the cities

Environmental Challenges Environmental quality decreasing due to significant increase of pollutants in water and air Of 35 rivers monitored by Provincial Environmental Impact Control Agencies, all are polluted Waste and garbage production from 2005 to 2006 increased by 20.9%, usually disposed to open dumps (although designed as sanitary landfills) Decreasing air quality from pollution from transportation and industry in Jakarta, Surabaya, Semarang, Bandung and Medan 2006: 26.5M tons of toxic and hazardous waste; most establishment do not have proper disposal facilities

Compliance and Enforcement Challenges Weak, limited and overlapping authorities among sector agencies, and national and local governments Weak coordination among concerned agencies and institutions Limited financial and human resources Complex systems – licensing, criminal and civil processes Paper-based, un-coordinated data management systems Lack of economic incentives programs – e.g. pollution charges Limited capacity to gather information to measure progress

Key Compliance and Enforcement Tools Guidelines on environmental management for industry Technical assistance on waste management for small scale industries EIA requirements for business licenses Public Participation in EIA process Environmental soft loans Import duty exemption on pollution control equipment Clean River and Blue Sky programs PROPER Class action provision

PROPER Program Started in 1995 Recognized worldwide as a model for public disclosure programs Foster company compliance by providing reputation incentives Focus: companies meeting 4 criteria - Large & significant environmental impact - Considerable environmental pollution - Listing in domestic and foreign capital markets - Export orientation Covers 7 elements: water pollution, air pollution, toxic and hazardous substances, EIA, EMS, natural resource use and community participation

PROPER Program Outcomes Program expanded from 95 to 521 companies from 2003 to 2007 Reputational incentives can lead to increased compliance –Compliance rate of 213 companies increased by 9.4% from 1995 to 1997 –Compliance rate of 251 companies increased by 13.14% from 2004 to 2005

Proper Black Rating There are 43 black rating companies Re-check to the field Collecting evidences Administrative sanction : 16 companies Civil enforcement : 1 company Criminal enforcement : 1 company 4 companies closed

Public Enforcement of Civil Law Legal ground for government institutions to file lawsuits for public interest Non-governmental organizations have legal standing Citizens can file a lawsuit through citizen lawsuit procedure or class action Class action provided under the Environmental Management Act of 1997

Class Action Provision Class action provision allows for rights of a small group of people to represent the larger public based on the similarity of problems, legal facts and a common claim for environmental damages Allows for greater citizen involvement in enforcement To date, only few cases have reached binding decision – e.g. Mandalawangi case

Mandalawangi Case Landslide in West Java in 2003 caused by illegal logging led to deaths of 21 people, many more injuries and loss of livelihoods Trial court allowed use of class action by community against State Forestry Company Supreme Court awarded compensation to the victims and obligated the government to provide adequate compensation and rehabilitate the degraded environment

Terima Kasih (Thank you)