Take Note: These Are the Positive Effects of Receiving PROPER for Companies
Jakarta, CNBC Indonesia - The Ministry of Environment and Forestry routinely holds the Company Performance Rating Programme (PROPER) Award as an effort to enhance companies’ compliance with environmental regulations. The award is given based on several parameters.
For context, this award has been developed since 1995 from the Clean River Programme (PROKASIH), which aimed to improve the quality of polluted river water. Although it was temporarily halted, the programme continued to develop in 2002 and innovated in 2019.
It should be noted that PROPER is a public disclosure programme for environmental performance assessment. PROPER is certainly not a replacement for conventional compliance instruments, such as civil or criminal environmental law enforcement.
This programme serves as a complement that can synergise with other compliance instruments. With this programme, efforts to improve environmental quality can be carried out more efficiently and effectively.
Furthermore, the PROPER assessment criteria are divided into two categories: compliance and criteria for performance beyond what is required by regulations (beyond compliance). Compliance criteria are based on companies’ efforts to meet several aspects, including water pollution control, water source maintenance, air pollution control, management of hazardous and toxic waste (B3), non-B3 waste management, B3 management, land degradation control, and waste management.
Meanwhile, beyond compliance criteria are more dynamic as they are adjusted to technological developments, the application of best environmental management practices, and global environmental issues.
Some points in the beyond compliance assessment include the implementation of environmental management systems, energy efficiency efforts, emission reduction efforts, implementation of reduce, reuse, and recycle for B3 waste, water conservation and reduction of wastewater pollution load, biodiversity protection, and community development programmes.
PROPER itself provides many benefits to companies, from environmental to economic aspects. A good assessment can bring advantages, such as public recognition and reduced operational costs through better efficiency. According to the Ministry of Environment and Forestry records, the number of PROPER participants has surged by more than 80% in the last four years.
For companies, PROPER can increase environmental awareness, improve environmental performance, enhance corporate image, encourage positive competition, support government policies, reduce negative environmental impacts, provide economic benefits, and facilitate access to sustainable financing.
By holding PROPER certification, companies demonstrate their commitment to responsible environmental management practices. Ultimately, this can increase trust from parties involved in financial decision-making.
In addition, this recognition opens opportunities for companies to access sustainable financing such as loans with low interest rates or investments from financial institutions focused on the environment.
The PROPER assessment itself is grouped into five colour categories, each indicating different levels of environmental performance. Here are the criteria for each PROPER colour rank:
- Gold (Highest Rank)
Criteria: Companies receiving a gold rank demonstrate the best environmental performance. These companies not only comply with environmental regulations but also take actions beyond what is required by law and actively contribute to environmental preservation. They apply sustainability principles in all aspects of their operations and lead in eco-friendly practices.
- Green
Criteria: Companies obtaining a green rank show very good environmental performance and have met most applicable legal provisions. They consistently manage environmental impacts effectively and efficiently.
- Blue
Criteria: Companies receiving a blue rank have met basic obligations in environmental management in accordance with applicable regulations. These companies may still have some areas needing improvement, but overall, they have carried out their environmental obligations well.
- Red
Criteria: Companies with a red rank demonstrate poor environmental performance. They do not comply with most existing environmental regulations and cause significant negative impacts on the environment.
- Black (Lowest Rank)
Criteria: Black is the lowest rank in PROPER and is given to companies that do not meet environmental regulations or even seriously damage the environment. Companies with this rank tend not to take actions to improve environmental conditions.
To appreciate every company practising sustainability, the Ministry of Environment and Forestry, together with CNBC Indonesia, is once again presenting the PROPER Environment Award 2025 at Taman Mini Indonesia Indah on 7 April 2026.
This programme is held as an arena for appreciation of companies committed to sustainable business practices and environmental responsibility.
This environmental award serves as an annual agenda to appreciate and motivate various parties to continue contributing to environmental preservation efforts.