Environment must become factor in credit approval<\/p>\n
JAKARTA (JP): State Minister of Environment Sarwono
\nKusumaatmadja called on bankers yesterday to go green by
\nincluding environmental considerations in the approval of credit
\napplications.<\/p>\n
\"Bankers have great influence over the investment process and
\nbusiness trends and can condition entrepreneurs to do green
\nbusiness,\" Sarwono said in his keynote address at a six-day
\ncourse on environment and banking.<\/p>\n
His statement was read by Liana Bratasida, director for the
\nTechnical Guidance section of Bapedal (the Environmental Impact
\nManagement Agency).<\/p>\n
He said that over the past few years the World Bank, the Asian
\nDevelopment Bank, Inter American Development Bank, European Bank
\nfor Reconstruction and Development, and African Development Bank
\nhad requested their clients to make environmental assessments of
\ntheir development projects.<\/p>\n
Thirty five bankers from Bank Danamon are taking part in the
\ncourse, which is held by the Office of the State Minister of
\nEnvironment and Bapedal in cooperation with the bank.<\/p>\n
The course is the second of its kind, according to Liana, the
\nfirst having been held in cooperation with Bank Pinaesaan. Bank
\nExport-Import has shown interest in the program and may now be
\nthe first state bank to take part in a similar course, Bratasida
\nsaid.<\/p>\n
In 1989 and 1990 Bank Indonesia issued circulars saying that
\nenvironmental aspects should be considered in the approval of
\nloan applications. The inclusion of environmental aspects,
\nhowever, was omitted in 1991, Mas Achmad Santosa, executive
\ndirector of the Indonesian Center for Environmental Law, said in
\na recent interview with The Jakarta Post.<\/p>\n
Bratasida, who opened the course on behalf of Sarwono, told
\njournalists after opening the course that she was not aware of
\nthe circulars.<\/p>\n
\"But environmental considerations are included in the tax
\nbill,\" she said.<\/p>\n
Bratasida told the course participants that it was time to
\ninclude environmental aspects in the corporate policy as evidence
\nof their concrete commitment to sustainable development. Bankers
\nshould consider the environmental impacts of the projects they
\nplan to finance, she said.<\/p>\n
Without an assessment of environmental management costs,
\ncalculations of the returns of investment would not be realistic,
\nBratasida added.<\/p>\n
Bankers should not consider environmental damages as force
\nmajeure (loss due to unavoidable disasters) anymore because there
\nis evidence that the damages can be prevented. Bankers are
\ntherefore expected not to tolerate any excess polluting resulting
\nfrom activities they finance, according to Bratasida.<\/p>\n
She said that in America and Europe the banks are generally
\nheld responsible for environmental damages caused by the projects
\nthey finance.<\/p>\n
Since May 1992, 62 European banks have signed a declaration
\nsponsored by UNEF (United Nation Environment Funds) to show their
\ncommitment to the prevention of environmental damage.<\/p>\n
Still rampant<\/p>\n
Bratasida said that even though Indonesia has a number of laws
\nand regulations regarding the environment, including the 1982
\nEnvironmental Act, polluting problems are still rampant.
\nTherefore, the environmental strategies should be changed from
\n\"reactive to pro-active.\" Emphasizing preventive actions through
\nan on-going campaign will in turn improve public environmental
\nawareness and hopefully tighten economic regulations.<\/p>\n
\"Command and control alone is not enough. We need mixed tools
\nto prevent environmental damages, we need market-based
\ninstruments,\" she said.<\/p>\n
She said it was not easy to change the attitude of business
\npeople used to polluting the environment for decades but added,
\n\"we must not be pessimistic.\"<\/p>\n
Bank Indonesia and the banks in charge of channeling funds
\nfrom the Overseas Economic Cooperation Fund have agreed to
\nprovide soft loans for the purchase of waste treatment
\nfacilities.<\/p>\n
\"We suggest that the banks also provide soft loans for
\nindustrial equipment as a green investment,\" Bratasida said.(sim)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/environment-must-become-factor-in-credit-approval-1447893297",
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