Indonesian Political, Business & Finance News

Video: KLH's Green Transformation, Strategy to Promote Sustainable Industry

| Source: CNBC Translated from Indonesian | Regulation
Video: KLH's Green Transformation, Strategy to Promote Sustainable Industry
Image: CNBC

Jakarta, CNBC Indonesia - The government, through the Ministry of Environment (KLH) continues to urge companies to participate in the Environmental Management Performance Rating Programme (PROPER) as a form of transparency and legal accountability for environmental permits to prevent damage and pollution of the environment.

Rasio Ridho Sani, Deputy for Pollution Control & Environmental Damage at KLH/BPLH, said that applying sustainability principles through the 3P (Profit, People, Planet) framework in companies will help improve corporate performance.

Furthermore, sustainability principles are also becoming a necessity for companies to enhance positive perceptions and assessments, as well as high levels of trust from investors, stakeholders and shareholders.

KLH believes the demand for environmental protection and green transformation will continue to rise in line with market demand trends from domestic and international markets.

Through PROPER, KLH classifies companies into five rankings from lowest to highest: Black, Red, Blue, Green and Gold, for companies capable of innovating in environmental and social protection efforts.

For companies that do not comply with environmental policy and receive Red and Black rankings, there will be public and investor pressure, thereby worsening the company’s image and reputation. Moreover, KLH will implement administrative penalties, fines, as well as the revocation of permits and civil and criminal lawsuits.

For full details, please watch the dialogue between Bunga Cinka and the Deputy for Pollution Control & Environmental Damage at KLH/BPLH, Rasio Ridho Sani, on Green Club, CNBC Indonesia (Friday, 22 May 2026).

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