State Firms Among Worst for Indonesia's Environment
Fidelis E. Satriastanti | October 16, 2009
Palm oil and paper companies are among those on the environmental offenders list. (Photo: Dimas Ardian, Bloomberg) Related articles
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The State Ministry for the Environment on Thursday released its annual
list of ratings of 627 companies based on compliance with environmental
regulations, and many state-owned enterprises were among the worst.
The
56 companies on the “black list” of worst offenders included 10
state-owned enterprises and 12 foreign companies. They operated across
a range of industries, including oil and gas, coal mining, pulp and
paper, textiles, fish processing, plywood and palm oil. They included
an oil and gas joint venture of PT Pertamina in South Sumatra, six
state-owned plantations, nine plywood companies, 10 palm oil concerns
and a leading milk producer.
The Corporate Environmental
Performance Ratings, also known as the Proper list, assessed the
environmental performance of 627 companies over the past year. Last
year’s list covered 516 companies.
The list is based on simple
criteria, including assessments of water quality, air quality and the
management of toxic chemicals. The ratings are divided into five color
categories — gold, green, blue, red and black — with gold for best
compliance and black for the worst. The black list included 56
companies, while the red list accounted for 130, including 48 firms
that had poor compliance.
“This is a wake up call for those
who are still labeled as black or red companies, because based on the
new [environment] law, they are facing big penalties,” said Surna
Tjahja Djajadiningrat, head of the Proper Advisory Council.
The
130 companies on red list, which had only partial compliance, included
43 state-owned companies and 24 foreign firms. They included 13 in the
oil and gas sector, eight of which were linked to Pertamina; five power
plants operated by state electricity firm PT Perusahaan Listrik Negara;
two units of the state tin mining company PT Timah; and 55 plantations,
of which 29 were state-owned.
The only firm to secure a gold
rating was cement company PT Indocement Tunggal Prakarsa, for its plant
in Citeureup near Bogor, West Java.
Surna said the Proper
Advisory Council had raised the requirements for this year’s ratings,
and the list reflected the fact that many companies, especially new
firms, had difficulties keeping pace.
“These new companies
have had very poor performances, which goes to show that they are not
actually concerned with environmental issues,” he said.
Environment
Minister Rachmat Witoelar said the list was supposed to encourage
companies to improve their performance and become more aware of the
environment.
“I realize that many companies failed to meet the standards after they were raised,” he said.
“But
I think that if we want to be more advanced, it should be done with
sustainability and environmental compatibility in mind.”
Surna
said the public should also feel free get involved, whether identifying
violations or pointing out errors in the list. “We are more than happy
to accept criticism,” he said.
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