{
    "success": true,
    "data": {
        "id": 1661267,
        "msgid": "company-bosses-gather-environment-minister-announces-changes-to-proper-system-for-2026-1775606622",
        "date": "2026-04-07 15:50:00",
        "title": "Company Bosses Gather! Environment Minister Announces Changes to PROPER System for 2026",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Regulation",
        "summary": "The Minister of Environment and Head of the Environment Control Agency, Hanif Faisol Nurofiq, has announced significant changes to the PROPER system for 2026, aiming to expand its scope to include direct government oversight and enforcement of environmental compliance across all business units in Indonesia. This shift aligns with the new KLH\/BPLH structure under President Prabowo Subianto, integrating PROPER with routine monitoring, electronic reporting every six months, and penalties for non-compliance, while addressing challenges like limited supervisory capacity through AI-assisted systems. The initiative seeks to boost participation from the current 7.6% to cover the estimated 74,000 companies with environmental documentation, enhancing accountability and environmental protection nationwide.",
        "content": "<p>Jakarta, CNBC Indonesia - The Minister of Environment and Head of the\nEnvironment Control Agency (KLH\/BPLH) Hanif Faisol Nurofiq has stated\nthat the PROPER assessment system\/mechanism will be changed. He conveyed\nthis during the PROPER 2025 Environmental Awards event at Taman Mini\nIndonesia Indah on Tuesday (7\/4\/2026).<\/p>\n<p>Hanif explained that the establishment of the Ministry of\nEnvironment\/Environment Control Agency (KLH\/BPLH) by President Prabowo\nSubianto underscores the government\u2019s commitment to direct involvement\nin supervising and enforcing environmental management and\nregulation.<\/p>\n<p>For this reason, he added, the implementation of PROPER must also\nadapt to align with these government policies.<\/p>\n<p>PROPER, or the programme for assessing company performance ratings in\nenvironmental management, serves as an instrument to encourage\nindustrial compliance with environmental regulations, even going beyond\nmere compliance.<\/p>\n<p>PROPER was initiated in 1995, now entering its third decade.\nAccording to the Deputy for Pollution Control and Environmental Damage\n(PPKL) of KLH\/BPLH, Rasio Ridho Sani, the number of PROPER participants\ncontinues to grow.<\/p>\n<p>It was noted that PROPER 2025 participants increased by 981\ncompanies, or 21.8%, from 4,495 in the previous year to 5,476 units\nacross 299 industrial sectors.<\/p>\n<p>Meanwhile, there are approximately 72,000 companies that should\nparticipate in PROPER. This means that in PROPER 2025, only 7.6% of\ncompanies are involved in the programme.<\/p>\n<p>Hanif stated that as minister, the Minister of Environment has only\ntwo main tasks. However, with the addition of BPLH, the minister\u2019s\nduties have expanded to include supervision and enforcement of\ncompliance in environmental management in accordance with applicable\nlaws.<\/p>\n<p>\u201cWhat does this mean? It means the central government will directly\nconduct supervision and control, law enforcement, and technical guidance\nacross all levels of environmental protection implementation,\u201d said\nHanif.<\/p>\n<p>He clarified that Article 73 of Law No.\u00a02\/2009 on Environmental\nProtection and Management stipulates that the minister must conduct\nsupervision when governors, regents, or mayors fail to do so. Article 77\nof the same law requires the minister to enforce the law when regents or\nmayors should but do not.<\/p>\n<p>This is why, Hanif emphasised, the implementation of the PROPER 2025\nEnvironmental Awards differs from previous years.<\/p>\n<p>\u201cIn previous years, PROPER was carried out by institutions within the\nMinistry of Environment at that time. But this year and in the future,\nPROPER will be conducted as mandated by Article 70, regarding our\nobligation to supervise and ensure environmental compliance for all\nbusiness units across Indonesia,\u201d said Hanif.<\/p>\n<p>\u201cFor this reason, in 2026 (PROPER 2026), we will attempt to conduct\nassessments as part of our obligation to the state in supervising all\nbusiness units in Indonesia,\u201d he continued.<\/p>\n<p>With 74,000 companies already holding UKL-UPL and AMDAL documents,\nthese companies will undergo routine supervision at least every six\nmonths. They will be required to submit electronic reports every six\nmonths, including all required aspects.<\/p>\n<p>\u201cThrough this electronic reporting information system, we will\ndevelop a broader reach combined with performance ratings for\nenvironmental compliance. This assessment will be very broad and\nextensive, certainly involving district\/city and provincial\ngovernments,\u201d explained Hanif.<\/p>\n<p>This system, he said, is for the accountability of district\/city and\nprovincial governments in environmental supervision. As stipulated in\nArticle 112 of the Environmental Law, if regents, mayors, or governors\nfail to supervise environmental protection and an incident occurs\nresulting in death, they face criminal penalties.<\/p>\n<p>\u201cTherefore, the future PROPER model must be developed more broadly.\nNot just for accolades, but as an obligatory step. Going forward, we\nwill combine PROPER with supervision and law enforcement values,\u201d he\nstated.<\/p>\n<p>\u201cIn the future, more systematic steps are needed to ensure no\nbusiness unit escapes responsibility under our national laws,\u201d he\nemphasised.<\/p>\n<p>On the other hand, Hanif acknowledged the challenges related to\ncapacity for supervising around 74,000 companies.<\/p>\n<p>\u201cWe are fully aware that with 74,000 business units obligated to have\nUKL, UPL, and AMDAL, it is far beyond our reach for compliance\nsupervision. The number of environmental supervisors and law enforcers\nis no more than 3,000 across Indonesia, from district\/city to provincial\nlevels up to the Ministry of Environment,\u201d he revealed.<\/p>\n<p>\u201cOne can imagine, with the rigidity of environmental documents and\nthe significant gap between the number of supervisors and business\nunits, aspects like this must concern us all,\u201d said Hanif.<\/p>\n<p>Meanwhile, the Deputy for Pollution Control and Environmental Damage\n(PPKL) of the Ministry of Environment\/Environment Management Agency\n(KLH\/BPLH), Rasio Ridho Sani, stated that to increase the number of\ncompanies participating in PROPER, an artificial intelligence (AI)-based\nsystem will be developed.<\/p>\n<p>This system is expected to have sufficient capacity as the number of\nPROPER participants continues to increase.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/company-bosses-gather-environment-minister-announces-changes-to-proper-system-for-2026-1775606622",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}