Adianto P. Simamora, The Jakarta Post, Jakarta | Fri, 10/16/2009 2:36 PM
Despite new, stronger authority, the Office of the State Minister for the Environment seems reluctant to punish companies that have intentionally polluted beyond tolerable levels.
The environment ministry announced Thursday the Proper ratings, which lists companies' performance impact on the environment. Fifty-six firms are rated black and 130 companies red out of 627 assessed companies.
State Minister for the Environment Rachmat Witoelar said the ranking system was not merely aimed at punishing companies, but driving them to improve environmental management in the future.
"The Proper rating doesn't just look at punitive actions, we want polluting firms to improve their performance in dealing with environmental management," he told reporters.
The Proper rating, first launched in 1995, ranks companies on a color scale, the highest being gold, followed by green, blue, blue minus, red, red minus and black.
The rating is based on assessment of air and water impact, hazardous material management and corporate social responsibility (CSR).
The black rating is given to the country's worst polluting companies, some of which deliberately ignore environmental practices.
Vice President Jusuf Kalla awarded the trophies to gold, green and blue companies on Thursday.
The 2009 Environmental Protection and Management Law carries penalties of up to 10 years in jail and fines of between Rp 3 billion and Rp 10 billion (US$318,000 and $1.06 million) for companies causing intolerable levels of environmental damage.
Chairman of one of the five independent Proper advisory boards, Surna Djajadiningrat, said companies rated black and red were punishable as stipulated in the law.
"They could be sent to prison but we need to return to the Proper's philosophy, which encourages the companies to practice social responsibilty," he said.
"If all polluting companies were forced to close their operations, there would be huge social impacts and mass layoffs."
The black rating was given to, JOB Pertamina Golden Spike in Muara Enim, South Sumatra; coal mining company PT Lanna Harita in Samarinda, East Kalimantan and the state-owned sugar plantation PT Perkebunan Nusantara IX in Kudus, Central Java, among others.
The red minus was given to 48 companies including coal mining company PT Bukit Baiduri Energy in Kutai Kartanegara, East Kalimantan; oil palm plantation PT Swakarsa Sinar Sentosa in Kutai Timur, East Kalimantan, and milk company PT Indo Lakto in Pasuruan, East Java.
The Proper awarded a gold label, bestowed upon a company with zero emissions that benefits local communities, to listed cement producer PT Indocement Tunggal Prakarsa in Citeurup, West Java.
The Proper rating has long been criticized by environmental activists as ineffective in improving corporate environmental responsibility, unless followed up by strong government action, such as the revocation of business permits.
