1 public disclosure system as an effective tool for pollution control the implementation of proper...
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Public Disclosure System as an effective tool for pollution control
The Implementation of PROPER in Indonesia
Hermien RoositaThe Ministry of Environment, Indonesia
Paris, 2-3 December 2004
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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
1982
1995
PRESENT
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2
3
4
FUTURE
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EnvironmentalEnvironmental Compliance Compliance ImplementationImplementation
a.a. Monitoring tools for Industrial Pollution Control : Monitoring tools for Industrial Pollution Control : PROKASIH, Blue Sky Program, Hazardous Waste PROKASIH, Blue Sky Program, Hazardous Waste Management ProgramManagement Program
b.b. Litigation Litigation
7 steps for dispute resolution :7 steps for dispute resolution : Surveillance for information and data collectionSurveillance for information and data collection Investigation for evidenceInvestigation for evidencess Legal briefLegal brief TrialTrial Appeal to high courtAppeal to high court Appeal to supreme courtAppeal to supreme court
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Weak monitoring system :
Human resources capacityHuman resources capacity
Financial supportsFinancial supports
Lack of coordination between agencies.
Lack of knowledge on environmental issue by stakeholders.
Weak monitoring system :
Human resources capacityHuman resources capacity
Financial supportsFinancial 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
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Alternative Alternative solutions solutions for industrial for industrial pollution controlpollution control
• NGO and community have function as a “watch-dog” to control industrial activities.
• ISO 14001.– A voluntary scheme for company’s environmental
management system.– A commitment to improve environmental performance
of companies.– ISO 14001 does not reflect a real companies’
environmental performance• Public Disclosure system (PROPER)
– An instrument to improve industries’ environmental performance through information dissemination to public.
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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
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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.
?
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PROPER RATING SYSTEM 2002
- 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 don’t meet standards
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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)
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PROPER’s PROPER’s Core Strategy-Strengthen Environmental PoliticsCore Strategy-Strengthen Environmental Politics
How to create public demand for cleaner environment? Empower external stakeholders
Public Disclosure
NGOs Communities Media Business
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
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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:
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PROPER’S 4 PRINCIPLES
TRANSPARENCY
PUBLIC PARTICIPATION
ACCOUNTABLE
FAIRNESS
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Rating Analysis
Qualitative Information
Quantitative Analysis
Visual Analysis
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New Implementation Approach: Strong Local Participation
Regular Monitoring
Sampling
Evaluation
Database system
Involvement of Provincial and District/City level
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PROPER Supports Strategic Policy Analysis
Sector Benchmarking
Province Level Benchmarking
Analysis of Key Performance Weaknesses
Set National Targets
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COMMUNICATION STRATEGY
Disclosure of companies’ rating : Press Conference
Information of the PROPER : Booklet Leaflet
Socialization to local governments and industries
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3330
14
8
0
25
32
20
8
0 3
23
51
8
00
10
20
30
40
50
60
N
UM
BE
R O
F I
ND
US
TR
IES
2002 2003 2004
PROPER 2002 - 2004
Black Red Blue Green Gold
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Administration cost of programs
61,400 / 43 industries
= US$ 2,362/industry
31,400/ case
TOTAL
38,000
5,600 5,600
1,100 5,500
Inspection and laboratories analysisCoordination meetingDewan PROPERPeer ReviewPress briefing
4,000 8,000 2,80011,000 2,800 2,800
SurveillanceInvestigationLegal briefTrialAppeal to high courtAppeal to supreme court
1234567
US$DescriptionUS$Description
PROPER **)Litigation *)No
*) Cost needed for litigation for an environmental pollution case**) Cost needed for PROPER to evaluate 43 manufacture
industries
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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).
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Compliance costCompliance 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
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LimitationLimitation
• 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.
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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.