Indonesian Political, Business & Finance News

Most big business neglecting the environment as people suffer

| Source: JP:IWA

Most big business neglecting the environment as people suffer

Moch. N. Kurniawan, The Jakarta Post, Tangerang

Less than two percent or only 332 of Indonesia's 22,000 big- or
medium-sized companies have taken part in a clean production
program since it was launched in 1993, according to a senior
government official.

Deputy assistant for standardization and technology at the
Ministry of Environment, Sabar Ginting, said on Tuesday that of
those 332 companies, only 215 had been awarded the ISO 14,000
Environment Management Standardization certificate.

"Many firms don't believe that clean production can minimize
operating costs.

"If our firms continue to behave like this, the destruction of
our environment will worsen," Sabar told a media visit to P.T.
Indah Kiat Pulp in Tangerang, Banten Tuesday.

Clean production is a method to prevent and minimize waste in
every production systems, including efficient use of raw
materials, energy and water, and recycling.

The program was introduced by the United Nations Environment
Program (UNEP) in 1989 as a voluntary program to help attain
sustainable development.

Sabar said companies had so far focused on treating waste at
the end of the production process, but the vast majority simply
dumped the waste in rivers or the air to save costs.

"Clean production is actually much cheaper than end-of-pipe-
treatment," said Sabar, citing as an example P.T. Indah Kiat
which saves about US$180,000 annually through the clean
production method.

Oil and gas company Caltex Pacific Indonesia, which spent $81
million implementing its clean production method, could regain
its investment in two years, he said.

Sabar warned that Indonesian firms risked losing lucrative
foreign markets, especially in Europe and the United States, if
they continued to ignore the program.

Indonesia is known for its lack of attention to environmental
destruction. According to Sabar, in the South East Asia region,
Indonesia lags behind Singapore, Malaysia, and Thailand for total
firms that meet ISO 14000.

Law enforcement to protect the environment from damage was
also weak due to collusion practices between the bureaucrats and
industry players, Sabar said.

Under Law No. 23/1997 on Environment Management, any
intentional action to pollute the environment could be punished
with a 10-year jail term and fines up to Rp 500 million
($55,500).

Sabar encouraged firms to start implementing the clean
production method, promising that his ministry would help finance
them.

"We have received funds from institutions in Norway, Germany
and Australia to help companies carry out clean production
programs," he said.

Meanwhile, Dody Bastaman, a senior official at the Environment
Agency in the Tangerang Municipality said that in his area, only
10 of 720 companies had participated in the clean production
program.

As a result, the pollution rate was still high, he said.

Dody said a company in Cikupa that was polluting the air was
burned down by members of the public. The company had refused to
implement the clean production method, he said.

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