Govt environmental audit improper, untimely: industry
Zakki P. Hakim, The Jakarta Post, Jakarta
Industry players slammed the government for requiring local factories to comply with environmental regulations that exceed the current capabilities of the firms.
"Better environmental management requires more sophisticated and more expensive machinery and equipment, local firms can't afford at the moment," Achmad Safiun, chairman of the Federation of Indonesian Metalworking and Machine Industry Associations (GAMMA), said on Tuesday.
His comment came following Monday's announcement of a 2004- 2005 government environmental audit conducted on 466 selected firms. The audit shows that 150 of the firms had been given "red labels" and 72 had been issued with "black labels" for not doing enough in terms of environmental management.
Safiun said the government should first assist or direct the firms to acquire better technology before requiring them to comply with stricter environmental standards.
PT Pfizer Indonesia's director of public affairs, Daisy K. Primayanti, told The Jakarta Post that the multinational pharmaceutical firm was concerned with the audit results, considering that it had been very strict and serious about its environmental management.
"It's a red mark that will certainly affect our corporate image," said Daisy, whose firm received a red label this year.
She argued that Pfizer had been given the red label as the firm had been given very little time to comply with changes in the technical requirements.
She said the firm supported the idea of improving environmental management but expected the government to employ better methods of disseminating information on environmental regulations.
Daisy said foreign firms were familiar with environmental standards and terminology, which was not the case with local companies. "Local firms certainly need time to change their paradigms and I believe that it will not be a cheap investment."
On Monday, State Minister of the Environment Rachmat Witoelar revealed that 14 firms, mostly manufacturers in the textile, paper and steel sectors, had already received two black labels and that the government would give them one month to improve their performance or they would be taken to court.
He said the black label firms would not be prosecuted if they at least showed concrete measures or steps that would be taken to improve matters, although they would remain in the "black" category.
Separately, Minister of Industry Andung A. Nitimihardja said the government would ensure that factories in the future be located in industrial zones with waste treatment facilities, which would enable firms to be more economical and efficient in managing their waste.
"Industries must grow, but their compliance with environmental standards must follow suit. We don't want to see industry players neglect the environment," he told reporters.
Furthermore, the industry ministry's director general of metal, machine, textile and miscellaneous industries, Ansari Bukhari, said that many manufacturers were classified as having poor environmental management as the regulations had developed faster than the firms.
He said, however, that the government expected black-label firms, especially those producing toxic waste, to at least inform the government about where they were disposing of their waste.
He quickly added that he needed to meet officials from the Office of the State Minister for the Environment to determine what action could be taken by the industry ministry against the firms.
The Corporate Environmental Management Assessment Program (PROPER) was first started in 1995 before the government suspended it in 1997, citing economic and political constraints. The program was resumed in 2002.
PROPER uses a color-coded system to categorize companies -- gold, green, blue, red and black -- with gold indicating exemplary environmental performance and black a substandard performance.