PROPER AS TOOL TO IMPLEMENT GREEN INDUSTRY
Sigit Reliantoro
Buyer Forum – International Labour OrganizationJakarta, June 10th 2014
Introduction
PROPER is environmental program to promote and enforce environmental regulation, compliance with pollution control
standards and encourage pollution reduction
1995-2005
The program’s objective are promote and enforce compliance,
encourage pollution reduction, introduce the concept of green
economy, and promote an environmental management system and conduct the business ethically
through the implementation of community development
2005-…..
There has been a changing understanding of the nature of environmental challenges. The problems of large-scale discharge of harmful pollutants have either been controlled or the regulatory regimes for tackling these have been firmly developed
Focus has shifted to wider issues of continual improvement, resource use, energy efficiency, product quality, etc. (Farmer, 2007).
1995 201419 years
A color-coded rating scheme was developed under PROPER to grade companies performance against the regulatory standards. The color coding system is based on five colors—gold, green, blue, red, and black.
GOLD is awarded to company that demonstrate environmental excellency consistenly in production and services, conducting business ethically and responsible to community;
GREEN is awarded to company that implement environment management procedures go beyond the expected compliance through implementation of Environmental Management System, pollution prevention, 4R (Reduce, Reuse, Recycle and Recovery) principles, and contribute to community development;
BLUE is awarded to company that display compliance to environmental regulations;
RED is awarde to company that display some sort of pollution control effort but do not comply with the regulatory standards in absolute terms
BLACK is awarded to company that does not make any attempt to control Pollution .
PROPER MECHANISM
BEYOND COMPLIANCE AREA
COMPLIANCE TO REGULATIONS
BASIC PRINCIPAL OF PROPER CRITERIA
BLUE
RED
BLACK
SEA POLLUTION CONTROL REGULATIONHAZARDOUS WASTE REGULATION
AIR POLLUTION REGULATIONWATER POLLUTION REGULATION
EIA REGULATIONNO EFFORT
INCOMPLIANCE
COMPLY
GOLD
GREEN
SUB
SCORE
SCORE
Passing Grade
Passing Grade
Best Practices ; Best Available Technology;Best Corporate Social Responsibility
X
=En
ergy
Effi
cien
cy
Envr
omen
tal
Man
agem
ent S
yste
m
Em
mis
ion
Red
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Wat
er C
onse
rvat
ion
3 R
of H
azar
dous
W
aste
3 R
of S
olid
W
aste
Bio
dive
rsity
Pr
otec
tion
Com
mun
ity D
evel
opm
ent
ENVIRONMENTAL EXCELENCES
Compliance Criteria• Compliance criteria are integration of regulation regarding:
– environmental permits and environmental impact assessment – water pollution control, – Air pollution, – Hazardous waste management– Land Degradation Criteria for mining industry
• To date more than 46 regulations have been integrated into the assessment criteria.
PROPER PROGRESS
In 2012-2013 1812 industries were involved in PROPERIt is targeted 2000 industries will be monitored by PROPER in 2014
PROPER participating companies mostly come from the Palm Oil Industry, Hotel, food and beverage, oil distribution, Exploration and Production of Oil and Gas, Hospital, textiles, coal mines, the sugar industry and so on
Palm Oil 16%
Hotel6%
Food & Beverages6%
Hospital6%
Oil & Gas Distribution
5%
Oil & Gas Exploration & Production
5%
Rubbert4%
Tekstil3%
Coal Mining3%
Gula3%
Energi PLTD3%
Industri Kimia2%
Otomotif2%
Minyak Goreng2%
Tambang Mineral2%
Komponen Oto-motif
2%
Pengolahan Ikan2%
Pelapisan Logam1%
Kertas1%Energi PLTU
1%
Kawasan Industri1%
Elektronik1%
Farmasi1%
Tapioka1%
Pengolahan Logam1%
Tepung1%
Petrokimia1%
Kayu Lapis1%
Semen1%
Susu1%
Pakan Ternak1%
Energi PLTP1%
Keramik1%
Cat1%
Energi PLTGU1%
FACTS PROPER PUSH THE LEVEL COMPANY'S REGULATORY COMPLIANCE ENVIRONMENT
50%
38%
12%
RATINGS UP
RATINGS REMAIN
RATINGS DOWN
25%
64%
11%
PERIOD 2009 - 2010
BLACK RED BLUE GREEN GOLD
2008 -
2009
BLACK 24 16 12
RED - 5 23 16
RED 1 33 42
BLUE- 2 48 166 5 2
BLUE 9 143 18 1
GREEN 2 6 30 5
GOLD 1 0
PERIOD 2010 - 2011
BLACK RED BLUE GREEN GOLD
2009 -
2010
BLACK 3 10 10
RED 11 56 81 3
BLUE 1 49 319 55
GREEN 1 1 9 39 4
GOLD 1 1
RATINGS UP
RATINGS UP
RATINGS UP
Based on the evaluation of 634 companies that follow the PROPER for 2 years in the period 2008-2010 up to 2009-2011• 50% improved performance
(improved ratings)• 38% fixed• 12% experienced a decrease
in performance (rank down)
For the period 2009-2010 up to 2010-2011, from 654 companies:• 25% experienced
improvement• 64% fixed• 11% decrease environmental
management performance
Law Enforcement for Black Rating
79 BLACK RATING
INDUSTRIES IN 2011-
2012
71 INDUSTRIES WERE IMPOSED GOVERMENT
ORDER SANCTIONS
4 INDUSTRIES WERE RECOMENDED FOR CRIMINAL LAW ENFORCEMENT
1 INDUSTRIES WAS RECOMENDED FOR LIABILITY ENFORCEMENT
3 INDUSTRIES WERE CLOSED DOWN
ENVIRONMENTALLAW
ENFORCEMENT MECHANISM
PROSECUTION & COURT SYSTEM
PROPER MECHANISM
Beyond Compliance Criteria9 area of beyond compliance assessment :1. Summary of Environmental Performance Report (Sustainability
Reporting)2. Implementation of Environmental Management Systems 3. Energy efficiency 4. Emission Reduction and Alternative Energy Utilization5. Water Conservation and Pollution Load Reduction 6. 3 R Hazardous Waste7. 3 R Solid Waste 8. Biodiversity Protection 9. Implementation of Community Development (Community Development)
Beyond Compliance Criteria Approach
• The Green & Gold criteria provide platform for industries to develop environmental excellencies base on their own specification.
• It borrow ideas of Timothy John "Tim" Berners-Lee in develop The Hypertext Transfer Protocol (HTTP).
• The platform base on PDCA principles (Plan – Do – Check – Adjust).
• Foundation Is Environmental Compliance
Inovation
Additionality
Benchmarking
RESULT
Plan – Do – Check – Action
ENVIRONMENTAL REGULATION COMPLIANCE
SYSTEM
EVIRONMENTAL EXCELENCE
OUTPUT
BEYOND COMPLIANCE PERFORMANCE
0
50
100
Migas EP Tambang Pupuk, Semen, Energi PLTU, Pulp Paper, Petro Kimia, Refinery
Energi Kertas, farmasi, kimia, tekstil, sepatu, kaca, otomotif Migas Distribusi
Kawasan Industri Pelapisan Logam Sawit
Consumer good & makanan Gula & Karet
OVERVIEW PROPER
PROPER ACHIEVEMENTSSector Unit Produced
ManagedUntreatedTemporary
Storage Third PartyIncinerated / Bioremiation 3 R internally
Oil Gas, energy, Mining Ton 87,333,422.820 73,831,764.170 13,501,658.650
Manufakturing Ton 3,017,281.341 14,214.325 58,946.591 4,492.675 2,032,762.434 906,865.316Industrial Estated
Ton 4,008,245.690 34.304 3,870,602.450 126,732.049 10,587.500 289.387
Agro industry Ton 86,670.751 26,933.203 29,889.336 0.627 37.526 29,810.059
Total Ton 94,445,620.602 73,872,946.002
3,959,438.377 131,225.351 2,043,387.460 14,438,623.412
Total Ton 94,445,620.602 80,006,997.191 14,438,623.412
PROPER managed to push the management of hazardous waste properly. In 2011 as 94,445,620.602 ton hazardous waste successfully managed. • 80,006,997.191 tons (84.71%) were managed in accordance with the
regulations (including temporary storage of hazardous waste and toxic materials, delivery to a 3rd party who has a permit, processing and 3 R internally)
• 2.56% are utilized internally (3 R ) by the company or equal to 2,043,387.460 tons
Community Development
1,857 Trillion of funds channeled through the Community Development program from 311 companies awarded Green and Gold rating .
It is also consider internal corporate social responsibility in Community Development Criteria
0
500
1000
1500
2000
2010 2011 2013
731 928
1.857
Jum
lah
Angg
aran
CSR
pe
rusa
haan
PRO
PER
(Mily
ar)
Tahun
1. The existence of trade unions2. Has a collective labor agreement3. Has a dispute resolution system
governance4. Evidence - Note labor disputes at
least 2 last years5. Showed a decrease in labor
disputes at least 2 last years
PROPER WBSITEhttp://proper.menlh.go.id/portal/
Since March 25th 2012 – It has been accessed by 180.021 visitors
The visitors from 249 cities and 44 countries.
Thank You