Only eight 'green' companies in the country: Minister

Only eight 'green' companies in the country: Minister

Tony Hotland, The Jakarta Post, Jakarta

The results of a 2002 environmental audit conducted on 85 select
companies showed that none of them received a gold label for
satisfactory performance, the government announced on Wednesday.

State Minister of the Environment Nabiel Makarim said only
eight companies were given the green label, 51 the blue label, 22
the red label and four received the black label for not
conducting any substantial effort in environmental management.

The 85 companies assessed are mostly located in western
Indonesia and have a significant impact on the environment, a
high potential for pollution, an export orientation and are
listed on the bourse.

The Company Environmental Management Assessment Program
(PROPER) was applied for the first time in 2002 since the
government suspended it in 1997 citing economic and political
constraints. The annual program was implemented in 1995.

PROPER applies five color labels in declining order to
companies -- gold, green, blue, red and black -- with gold
indicating exemplary environmental performance and black,
substandard performance.

The assessment is based on 51 criteria, including control of
liquid waste, air pollution and hazardous waste, implementation
of environmental impact analysis, management of resources and
environment, and public involvement.

The more criteria a company fulfills, the higher its rating.

Among those companies that received the green label are:
consumer goods producer PT Unilever Indonesia in East Java, pulp
and paper maker PT Tanjung Enim Lestari in South Sumatra, cement
maker PT Indocement Tunggal Perkasa in West Java and mining firm
PT Newmont Nusa Tenggara in West Nusa Tenggara.

Companies slapped with the black label are: state oil and gas
firm PT Pertamina UP IV in Cilacap, Central Java; textile
producers PT Kahatex II and PT Prodomo, both in West Java; and
paper maker PT Papyrus Sakti Paper Mill in West Java.

Asserting that the audit was aimed at motivating the country's
industries to improve their environmental management, Nabiel said
action would not be taken against companies that recorded poor
environmental performance.

Nabiel admitted the program had no legal power to bring errant
companies to court. "But we can send written warnings to bad
companies. This also opens up the possibility for revoking
licenses. The red and black labels should send signals to law
enforcers to prepare measures," he said.

"Law enforcement hasn't been very effective when dealing with
environmental crimes. Hopefully this program can influence the
judgment of the public and company stakeholders," Nabiel said.

He said the environmental ratings were aimed at helping the
public, company stakeholders and even banks to assess and judge
the companies.

"It can definitely affect their images, and can adversely
influence their finances in terms of the provision of bank loans,
for example," said Nabiel.

Asked why it took the government almost two years to complete
the audit, Nabiel said the auditors had to start from scratch
after a five-year lapse. The team had also involved
representatives from non-governmental organizations as well as
independent observers.

Controversy marked the reinstatement of the audit, as the
government had excluded mining firms from its audit.

Isa Karnisa Ardiputra from the assessment team said the
ministry distributed questionnaires and conducted spot checks at
the companies.

"The companies had no excuse to refuse us admission to get an
inside look, as it is regulated in Law No. 23/1997 on
environmental management," he said.