ENVIRONMENTAL PERFORMANCE RATING PROGRAM

Nety WidayatiHead of sub Directorate of Water Pollution Control Planning

Directorate General Pollution Control And Degradation EnvironmentMINISTRY OF ENVIRONMENT AND FORESTRY

Jl. D.I. Panjaitan Kav 24 Jakarta 13410Telp./Fax.: 021-8517257 www.menlh.go.id

http://proper.menlh.go.id/portal/

Introduction

PROPER is environmental program to promote and enforce environmental regulation, compliance with pollution control

standards and encourage pollution reduction

1995-2005

The program’s objective are promote and enforce compliance,

encourage pollution reduction, introduce the concept of green

economy, and promote an environmental management

system and conduct the business ethically through the

implementation of community development

2005-…..

There has been a changing understanding of the nature of environmental challenges.The problems of large-scale discharge of harmful pollutants have either been controlled or the regulatory regimes for tackling these have been firmly developed

Focus has shifted to wider issues of continual improvement, resource use, energy efficiency, product quality, etc. (Farmer, 2007).

1995 201419 years

PROPER RATINGSGOLD is awarded to company that demonstrate environmental excellencyconsistenly in production and services, conducting business ethically and responsible to community;GREEN is awarded to company that implement environment management procedures go beyond the expected compliance through implementation of Environmental Management System, pollution prevention, 4R (Reduce, Reuse, Recycle and Recovery) principles, and contribute to community development;BLUE is awarded to company that display compliance to environmental regulations;RED is awarde to company that display some sort of pollution control effort but do not comply with the regulatory standards in absolute termsBLACK is awarded to company that does not make any attempt to control Pollution .

BEYOND COMPLIANCE AREA

COMPLIANCE TO REGULATIONS

BASIC PRINCIPAL OF PROPER CRITERIA

BLUE

RED

BLACK

SEA POLLUTION CONTROL REGULATIONHAZARDOUS WASTE REGULATION

AIR POLLUTION REGULATIONWATER POLLUTION REGULATION

EIA REGULATIONNO EFFORT

INCOMPLIANCE

COMPLY

GOLD

GREEN

SUB

SCORE

SCORE

Passing Grade

Passing Grade

Best Practices ; Best Available Technology;Best Corporate Social Responsibility

X

=En

ergy

Ef

ficie

ncy

Envr

omen

tal

Man

agem

ent S

yste

m

Em

mis

ion

Red

uctio

n

Wat

erC

onse

rvat

ion

3 R

of H

azar

dous

W

aste

3 R

of S

olid

W

aste

Bio

dive

rsity

Pr

otec

tion

Com

mun

ityD

evel

opm

ent

ENVIRONMENTAL EXCELENCES

Compliance Criteria

• Compliance criteria are integration of regulation regarding:– environmental permits and environmental impact assessment – water pollution control, – Air pollution, – Hazardous waste management– Land Degradation Criteria for mining industry

• To date more than 46 regulations have been integrated into the assessment criteria.

WATER POLLUTION CONTROL

PARAMETERMONITORING

COMPLIANCE POINT (Discharge Outlet)

DISCHARGE PERMIT

PRIMER DATA TAKEN DURING INSPECTION

WASTE WATER STANDARD

REPORTING

TECHNICAL REQUIREMENT

Government Regulation

No..82 / 2001Ministerial Decree No.

05/2014Ministerial

Decree No. 08/2007Ministerial

Decree No. 09/2007Ministerial

Decree No. 10/2007

REFERENCE REGULATION Government Regulation

No..4 / 2014 water polution standard

AIR POLLUTION CONTROL

PARAMETERMONITORING

COMPLIANCE POINT (Discharge Outlet)

EMISSION STANDARD

REPORTINGManual / CEM

TECHNICAL REQUIREMENT

Government Regulation No.41 / 99

Technical Guidance for Air Pollution Head of

Environmental Impact

Management Agency Decree

No. 205/1996Ministerial Decree

No. 13 / 1995Ministerial Decree

No. 7 / 2007

PRIMER DATA TAKEN DURING INSPECTION

REFERENCE REGULATION

PROPER PROGRESS

In 2013-2014 1908 industrieswere involved in PROPERIt is targeted 2000 industries will be monitored by PROPER in 2014

PROPER participating companies mostly come from the Palm Oil Industry, Hotel, food and beverage, oil distribution, Exploration and Production of Oil and Gas, Hospital, textiles, coal mines, the sugar industry and so on

Palm Oil 16%

Hotel6%

Food & Beverages

6%

Hospital6%

Oil & Gas Distribution5%

Oil & Gas Exploration & Production

5%

Rubbert4%

Tekstil3%

Coal Mining3%

Gula3%

Energi PLTD3%

Industri Kimia2%

Otomotif2%

Minyak Goreng2%

Tambang Mineral2%

Komponen Otomotif2%

Pengolahan Ikan2%

Pelapisan Logam1%

Kertas1%

Energi PLTU1%

Kawasan Industri1%

Elektronik1%

Farmasi1%

Tapioka1%

Pengolahan Logam1% Tepung

1%

Petrokimia1% Kayu Lapis

1%

Semen1%

Susu1%Pakan Ternak

1%

Energi PLTP1%Keramik

1%Cat1%

Energi PLTGU1%

0

500

1000

1500

2000

2002-2003 2004-2005 2008-2009 2010-2011 2012-20132 22 41 9 32 47 48 79 17 2120 64 116 73 118 154 233 295 551 516

5299

182 305385 433603

806

10991224

89

21 4540

54

106

119

113121

00

0 01

2

5

12

12 9

Minister of Environment and Forestry’s Decree No. 180 Year 2014

Dated 1st December 2014 (Result of PROPER 2013-2014)

Overall Result

BLACK : 21 Companies

RED : 516 Companies

BLUE : 1224 Companies

GREEN : 121 Companies

GOLD : 9 Companies

Note: 17 of 1908 companies undisclosure due to some reasons (closed, inactive, faced environmental law enforcement, etc.)

THE GOLD RATINGNo Name Companies Sub sector city Province

1PT. Badak NGL Oil n Gas

LNG/LPG Bontang East Kalimantan

2PT. Bio Farma (Persero) Pharmacy Bandung West Java

3 PT. Bukit Asam (Persero) Tbk. Unit Pertambangan Tanjung Enim Coal Mining Muara Enim South Sumatera

4 PT. Holcim Indonesia, Tbk - Cilacap Plant Cement Cilacap Central Java5

PT. Medco E&P Indonesia - Rimau AssetOil and gasExploration and Production

Musi Banyuasin South Sumatera

6 PT. Pertamina (Persero) S&D Regional II Terminal BBM Rewulu Oil n gas Bantul D.I. Yogyakarta

7 PT. Pertamina Aviasi Region III DPPU Ngurah Rai Bali Oil n gas Badung Bali

8 PT. Pertamina Geothermal Energy Area Kamojang

Geothermal Powerplant Bandung West java

9 Star Energy Geothermal (Wayang Windu) Ltd. Geothermal powerplant Bandung West java

PROPER participating companies in 2015

2142Province1249

MOEF544

Self Assement349

Agro880

Mining, oil n gas, power

plant451

Manufacture811

Law Enforcement for Black Rating

79 BLACK RATING

INDUSTRIES IN 2011-

2012

71 INDUSTRIES WERE IMPOSED GOVERMENT

ORDER SANCTIONS

4 INDUSTRIES WERE RECOMENDED FOR CRIMINAL LAW ENFORCEMENT

1 INDUSTRIES WAS RECOMENDED FOR LIABILITY ENFORCEMENT

3 INDUSTRIES WERE CLOSEDDOWN

ENVIRONMENTALLAW

ENFORCEMENT MECHANISM

PROSECUTION & COURT SYSTEM

PROPER MECHANISM

Beyond Compliance Criteria

9 area of beyond compliance assessment :1. Summary of Environmental Performance Report (Sustainability

Reporting)2. Implementation of Environmental Management Systems 3. Energy efficiency 4. Emission Reduction and Alternative Energy Utilization5. Water Conservation and Pollution Load Reduction6. 3 R Hazardous Waste7. 3 R Solid Waste 8. Biodiversity Protection 9. Implementation of Community Development (Community Development)

GREEN & GOLD CRITERIANo Criteria Score1 Environmental Management System 1002 Resources Utilization

a. Energy Eficiency. 100b. Emmision Reduction (Criteria Pollutant & GHG),

mobile emmision sources monitoring150

c. Water Conservation 100d. Reduction, reuse and recyl of Hazardous Waste 100

d. Reduction, reuse and recyl of Solid Waste 100f. Protection of Biodiversity 100

3 Community Developmenta. Criteria for Green Rating 100b. Criteria for Gold Rating 50

Green & Gold Rating MechanismEnergy Sector

Mining Sector

Oil Distribution Sector

Oil & Gas Exploration & Production

Oil Refinery , Natural Gas Liquid Petrochemical, Pulp & Paper,Cement

Paper, Fertilizer Industry

Cane Plant, Rubber Industry, Plywood, Palm Oil Refinery,

Aluminum Profile, Consumer Goods,Pharmacy, Industrial Estate, Lamp, Food & Baverage, Automotive, Electro plating

Industry, Shoes , Milk, Textile, Glass, Hotel Industry

0

10

20

30

40

100 150 200 250 300 350 400 450 500 550 600

BLUE GREEN GOLD CANDIDATS

Benchmarking is the key of green & gold rating mechanism.

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries.

Gold & Green Criteria are used as benchmark.

The best 25 % companies within a sector will be nominated as gold candidats.

The companies that lay within 75 % - 25 % best companies will be awarded green rating.

The worst 25 % company within a sector will be downgraded to Blue Rating.

BEYOND COMPLIANCE PERFORMANCEPERFORMANCE REPORTING

EMS

ENERGY EFF

3R HAZ WASTE

3R SOLID WASTE

EMISSION REDUCTION

WATER CONSERVATION

BIODIVERSITY PROTECTION

0

10

20

30

40

50

60

0

10

20

30

40

50

60

70

80

90

Migas EP TambangPupuk, Semen, Energi PLTU, Pulp Paper, Petro Kimia, Refinery EnergiKertas, farmasi, kimia, tekstil, sepatu, kaca, otomotif Migas DistribusiKawasan Industri Pelapisan LogamSawit Consumer good & makananGula & Karet

Distribution of Gold & Green rating

NUMBER OF INDUSTRIES Ratio of Green & Gold rating to number of industries at the specific

tipe of industries

PROPER – GREEN HOUSE GAS REDUCTION

• One of the important achievement is the compilation of emission reduction data.

• In 2009-2010 Green House Gas Reduction was estimated 10,4 million Ton CO2 from Oil & Gas, Mining, Manufacture and Power Plant.

• In 2010-2011 from 106 candidates Green & 5 candidates Gold rating industries the potential Green House Gas Reduction is estimated :

SECTOR GHG REDUCTION UNITOIL - GAS 7.574.724,7709 Ton CO2 eqMINING 1.712.414,4718 Ton CO2 eq

POWER PLANT 2.149.641,4415 Ton CO2 eqMANUFACTURE & AGROINDUSTRY 447.767,5839 Ton CO2 eq

TOTAL 11.884.548,2681 Ton CO2 eq

PROPER ACHIEVEMENTS• The Evaluation Result of 173 green and gold

rated companies are:– 26.105.806 Giga Joule of Energy efficiency– 488.386.554 m3 of water conserved– utilized internally (3 R ) by the company or equal to

11.385.591 ton– 2.428.069 ton of hazardous waste was reduced– 173 industries contribution

in CSR IDR. 1,16 Trillion

0

500

1000

1500

2000

2010 2011 2013 2014

731928

1875

1161Ju

mla

h Da

na C

SR

(Mily

ar)

Tahun

PROPER WEBSITEhttp://proper.menlh.go.id/portal/

Since March 25th 2012 – It has been accessed by 180.021 visitors

The visitors from 249 cities and 44 countries.

MINISTRY OF ENVIRONMENT AND FORESTRYJl. D.I. Panjaitan Kav 24 Jakarta 13410

Telp./Fax.: 021-8517257www.menlh.go.id

http://proper.menlh.go.id/portal/