Tony Hotland, The Jakarta Post, Jakarta
More weight and sterner consequences tied to the government's annual environmental rating system for industries should guarantee greener corporate ambitions and action against non-compliance, stakeholders said Tuesday.
The Office of the State Minister for the Environment resumed in 2002 use of the PROPER rating system, which assesses industries in terms of their waste management and corporate environmental responsibility. The system later grades businesses into one of five different color groups indicating their compliance to the required standards.
The office has already covered 521 companies operating in various industries and expects to assess a further 1,000 next year.
Green activist Mas Achmad Santosa from the Indonesian Center for Environmental Law said that for PROPER to succeed, four approaches must be adopted: command and control, behavioral, incentive and public pressure.
"These four need integrating. The PROPER that I see now still relies on incentives and public pressure, but it has yet to spark awareness within the industries that would eventually lead to green behavior," he told a discussion on revitalizing the PROPER system.
Santosa added: "The failure to carry out legal enforcement against unruly companies turns around the credibility PROPER is seeking to establish.
"There should be a (premise) that not taking PROPER seriously ends in facing harsh sanctions. But from what I've seen, very few of the black cases go to court," he said, referring to the categorization of "black" used to indicate total disobedience to environmental standards.
Only companies stamped "black" for two consecutive years are brought to court. The other color codes, from least to most severe, are gold, green, blue and red.
Environmental activists, Santosa said, are of the view that industries in the country abide by environmental laws to evade liability, not to help raise awareness of sustainable development and the fragility of ecosystems.
Bien Subiantoro of state-owned Bank Negara Indonesia said the bank uses PROPER as a factor in considering loan applications made by firms.
"The way PROPER is prepared and its position in front of the industries should be well-put and independent (from the reviewed company)," he said.
Syamsul Ma'arif, an environmental consultant for Bandung-based textile exporter PT Daliatex Kesuma, said the environment office should collaborate more closely with local administrations to monitor industries throughout the country.
He said the provision of quality staffers to assist industries in reaching "gold" status was of great importance.
"Being 'red' or 'green' can lead to two things; either it will boost the firms to upgrade their environmental bars or bring them down as it puts more of a burden on them and effects their competitiveness," he said.
Rasio Ridho Sani of the PROPER team said the rating system was implemented to motivate industries to establish and maintain environment-minded standards of operation, in line with calls by the public and shareholders for greener business practices.
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