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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