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Rasio Ridho Sani DRS (UI), M.COM (Uni.Sydney), MPM (InWent-Uni.Potsdam)

The PROPER Indonesian Environmental Compliance Public Disclosure Alternative Policy Instrument for Better Air Quality. Rasio Ridho Sani DRS (UI), M.COM (Uni.Sydney), MPM (InWent-Uni.Potsdam) Ministry of the Environment Republic of Indonesia. Better Air Quality 2006 Yogjakarta Indonesia

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Rasio Ridho Sani DRS (UI), M.COM (Uni.Sydney), MPM (InWent-Uni.Potsdam)

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  1. The PROPERIndonesian Environmental Compliance Public DisclosureAlternative Policy Instrument for Better Air Quality Rasio Ridho Sani DRS (UI), M.COM (Uni.Sydney), MPM (InWent-Uni.Potsdam) Ministry of the Environment Republic of Indonesia Better Air Quality 2006 Yogjakarta Indonesia 13-15 December 2006

  2. Program for Environmental Compliance Performance Rating (PROPER)

  3. ………………….. Outline • The history of Environmental Management Policy Instrument in Indonesia • Rationality of Environmental Compliance Public Disclosure • Compliance Improvement Mechanism • The Benefits and Results • Lessons Learned

  4. Environmental Compliance Policy Instrument in Indonesia Market Instrument (Cleaner Production, Soft Loan) 1986 1990 1999 2002 Environmental Impact Assessment Clean River Program Licensing System Multimedia Environmental Compliance Public Disclosure “PROPER” Clean Air Program (Blue Sky) Hazardous Wastes Control Water Pollution Compliance Public Disclosure Economic Crisis 1995 1998 - 2002 Environmental Law Enforcement

  5. Background and Rationality of Environmental Compliance Public Disclosure Background: • Lack of companies environmental compliance • Ineffective of conventional environmental law enforcement policy tools • Demand for greater public participation & transparency in environmental management • Alternative policy tools

  6. ……….Environmental compliance Performance Public Disclosure will create interaction among related stakeholders; regulators, workers, investors, customers, public, shareholders Rationality ……. reputational incentives to good performer, and then reputational disincentive to bad performer

  7. Then …. the Element of PROPER, and its legal foundations Minister conduct compliance surveillance .. Act. 23/97 article 22 Every person has a right on environmental information .. 23/97 article 5.2 Compliance Monitoring Public Right To Know Government shall develop and implement preemptive, preventive, and proactive policy tools in order to maintain carrying capacity of the environment (Act 23/97 article 10.e) Company Information Dissemination Public Participation Community has equal opportunities to participate in environmental management …. Act. 23/97 article 5.3 Everybody whom doing business and activities obligate to provide right information …. Act. 23/97 article 6.2

  8. 3. Compliance Improvement Mechanism

  9. Multi media environmental compliance Rating Color Coded Rating

  10. 4. Benefits and the Results …….. Benefits to the Stakeholders

  11. Strategic Map PROPER and Conventional Environmental Law Enforcement Tool High PROPER Law Enforcement Low Other Stakeholder Involvement Relationship among Stakeholders Time Required Cost Needed Public Involvement Value Added to Stakeholder

  12. China (2000) Vietnam (2002) Filipina (1997) Ghana (2005) Thailand (2005) India (2002) Indonesia (1995) From Indonesia to other part of the World ……….. Source: AECEN

  13. The Results Overall Performance ……..

  14. Overall Performance …….. At 2005 The Results

  15. 13.15 % compliance Improvement Rating 251 companies Evaluation period 2003-2004 & 2004-2005 138 140 114 120 100 86 67 80 60 42 40 23 18 9 20 4 1 0 0 0 2003-2004 2004-2005 Ditunda Tutup The Effectiveness … Increasing rate of compliance

  16. Media Compliance Performance Air pollution compliance level is higher than water pollution, and hazardous waste management

  17. Compliance performance Air Pollution control PROPER 2005

  18. The Lesson Learned Key success factor of the PROPER depends on ………….. Active Role of Stakeholders Strengthening Role of Independent Advisory Board Enlarging Role of Media Synergistic approach with other program Targeting for Law Enforcement and other Financial Disincentive Effective Communication Strategy Credibility of Executing Agency

  19. The Lesson Learned Promoting of non regulated emissions as a criteria for beyond compliance performance …….. • Fugitive Emissions • Green House Gases • Conservation Energy

  20. The Lesson Learned ………….However, supporting infrastructure such as the availability of accredidated laboratory facilities is still limited

  21. The Lesson Learned Increasing number of targeted companies to achieve critical momentum of the program and therefore ……the role of local government is becoming important The next …the rating of 525 companies will be publish to the public by early of January 2007

  22. The Lesson Learned The PROPER will be more effective in nationwide framework than local type of environmental compliance public disclosure

  23. Thank You terima kasih Text message : +62.812 192 4334 Email : rasiosani@menlh.go.id

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