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PROPER AS TOOL TO IMPLEMENT GREEN INDUSTRY Sigit Reliantoro B uyer Forum – International Labour Organization Jakarta,

PROPER AS TOOL TO IMPLEMENT GREEN INDUSTRY Sigit Reliantoro B uyer Forum – International Labour Organization Jakarta, June 10th 2014. Introduction. 1995. 2014. 19 years.

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PROPER AS TOOL TO IMPLEMENT GREEN INDUSTRY Sigit Reliantoro B uyer Forum – International Labour Organization Jakarta,

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  1. PROPER AS TOOL TO IMPLEMENT GREEN INDUSTRYSigit ReliantoroBuyer Forum – International Labour OrganizationJakarta, June 10th 2014

  2. Introduction 1995 2014 19 years PROPER is environmental program to promote and enforce environmental regulation, compliance with pollution control standards and encourage pollution reduction • There has been a changing understanding of the nature of environmental challenges. • The problems of large-scale discharge of harmful pollutants have eitherbeen controlled or the regulatory regimesfor tackling these have been firmly developed • Focushas shifted to wider issues of continual improvement, resource use, energyefficiency, product quality, etc. (Farmer, 2007). 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 1995-2005 2005-…..

  3. 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.

  4. PROPER MECHANISM

  5. BASIC PRINCIPAL OF PROPER CRITERIA X ENVIRONMENTAL EXCELENCES SUB S CORE Envromental Management System Energy Efficiency Emmision Reduction Water Conservation 3 R of Hazardous Waste 3 R of Solid Waste Biodiversity Protection Community Development = GOLD SCORE Passing Grade GREEN Passing Grade Best Practices ; Best Available Technology; Best Corporate Social Responsibility BEYOND COMPLIANCE AREA BLUE • SEA POLLUTION CONTROL REGULATION • HAZARDOUS WASTE REGULATION • AIR POLLUTION REGULATION • WATER POLLUTION REGULATION • EIA REGULATION COMPLY RED INCOMPLIANCE BLACK NO EFFORT COMPLIANCE TO REGULATIONS

  6. Compliance Criteria • Compliance criteriaare 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.

  7. PROPER PROGRESS 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 In2012-2013 1812 industries were involved in PROPER It is targeted 2000 industries will be monitored by PROPER in 2014

  8. FACTS PROPER PUSH THE LEVEL COMPANY'S REGULATORY COMPLIANCE ENVIRONMENT • 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 50% RATINGS UP RATINGS REMAIN 38% RATINGS DOWN 12% RATINGS UP 25% 64% RATINGS UP 11% RATINGS UP

  9. Law Enforcement for Black Rating PROPER MECHANISM 71 INDUSTRIES WERE IMPOSED GOVERMENT ORDER SANCTIONS 79 BLACK RATING INDUSTRIES IN 2011-2012 ENVIRONMENTAL LAW ENFORCEMENT MECHANISM PROSECUTION & COURT SYSTEM 4 INDUSTRIES WERE RECOMENDED FOR CRIMINAL LAW ENFORCEMENT 1 INDUSTRIES WAS RECOMENDED FOR LIABILITY ENFORCEMENT 3 INDUSTRIES WERE CLOSED DOWN

  10. Beyond Compliance Criteria 9 area of beyond compliance assessment : • Summary of Environmental Performance Report (Sustainability Reporting) • Implementation of Environmental Management Systems • Energy efficiency • Emission Reduction and Alternative Energy Utilization • Water Conservation and Pollution Load Reduction • 3 R Hazardous Waste • 3 R Solid Waste • Biodiversity Protection • Implementation of Community Development (Community Development)

  11. 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 EVIRONMENTAL EXCELENCE OUTPUT SYSTEM

  12. BEYOND COMPLIANCE PERFORMANCE

  13. OVERVIEW PROPER Page 13 Desember 2013 PROPER 2013 DALAM ANGKA

  14. PROPER ACHIEVEMENTS • 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

  15. 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 The existence of trade unions Has a collective labor agreement Has a dispute resolution system governance Evidence - Note labor disputes at least 2last years Showed a decrease in labor disputes at least 2 last years

  16. PROPER WBSITE http://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.

  17. Thank You

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