Blue Sky Disclosure
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Blue Sky Disclosure document sample
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The PROPER
Indonesian Environmental Compliance Public Disclosure
Alternative Policy Instrument for Better Air Quality
Rasio Ridho Sani Better Air Quality 2006
DRS (UI), M.COM (Uni.Sydney), MPM (InWent-Uni.Potsdam)
Yogjakarta Indonesia
Ministry of the Environment
13-15 December 2006
Republic of Indonesia
Program for Environmental Compliance
Performance Rating
(PROPER)
………………….. Outline
1. The history of Environmental Management Policy
Instrument in Indonesia
2. Rationality of Environmental Compliance Public
Disclosure
3. Compliance Improvement Mechanism
4. The Benefits and Results
5. Lessons Learned
1. Environmental Compliance
Policy Instrument in Indonesia
Market Instrument (Cleaner Production, Soft Loan)
1986 1990 1999 2002
Clean River
Program
Clean Air Program Licensing Multimedia
(Blue Sky) System Environmental
Environmental Compliance
Impact Assessment Hazardous Wastes Public Disclosure
Control
“PROPER”
Water Pollution
Compliance Economic Crisis
Public Disclosure
1995 1998 - 2002
Environmental Law Enforcement
2. Background and Rationality of Environmental
Compliance Public Disclosure
2002 - 2003
Background:
Lack of companies Com ply,
28, 33%
environmental
compliance Not
2003 - 2004
Ineffective of
Com ply,
57, 67%
conventional Not Com ply,
environmental law Com ply,
128, 51%
123, 49%
enforcement policy tools
Demand for greater 2004 - 2005
public participation &
transparency in Not
environmental Com ply,
222, 48%
Com ply,
244, 52%
management
Alternative policy tools
Rationality …….
……….Environmental compliance Performance
Public Disclosure will create interaction among
related stakeholders; regulators, workers,
investors, customers, public, shareholders
reputational incentives to good performer, and
then reputational disincentive to bad performer
Then …. the Element of PROPER, and
its legal foundations
Minister conduct compliance Every person has a right on environmental
surveillance .. Act. 23/97 article 22 information .. 23/97 article 5.2
Compliance Public Right
Monitoring To Know
Government shall develop and implement
preemptive, preventive, and proactive
policy tools in order to maintain carrying
capacity of the environment (Act 23/97
article 10.e)
Company Public
Information Participation
Dissemination
Everybody whom doing business and Community has equal opportunities to
participate in environmental
activities obligate to provide right
management …. Act. 23/97 article 5.3
information …. Act. 23/97 article 6.2
3. Compliance Improvement
Mechanism
Compliance Mechanism Improvement
Compliance Performer Five Color
Level Coded Stakeholder reactions Impact
Rating
Beyond Gold Appreciation from workers, Reputation
Compliance Good shareholders, investors, Incentive
Green customers, and public
Comply Sufficient Blue Neutral
Non Bad Red Pressure from workers, Disincentive
Compliance shareholders, investors, Reputation
Black
customers, and public
Multi media environmental
Color Coded
Rating compliance Rating
Performance Assessment Type of
Compliance Rating Compliance
Level Alternative Area Method
Environmental Management
System Effort
Above Gold A
Compliance Resources Conservation and Oriented Voluntary
Reuse, Recycle, and Recovery
Green B of Wastes (3R)
CSR: Community
Development
Comply Water and Sea Water Pollution
Blue C
Air Pollution
Result Obligatory
Hazardous Waste
Oriented
Non Red D Management
Compliance Implementation of EIA
Black E
4. Benefits and the Results
…….. Benefits to the Stakeholders
Government Company Investors and Public
Cost effective for compliance
Benchmarking for non
perforamance
financial performance Clearing house for
targeted company
Tool to measure
Intangible Value Added performance
environmental management
Better Company Image
program
Driver for Eco Efficiency
Room for public
Instrument to drive beyond Improving communication
participation in
compliance program between government and
environmental
company
management
Strategic Map PROPER and Conventional
Environmental Law Enforcement Tool
High
PROPER
Law
Enforcement
Low
Time Cost Public Other Value Added Relationship
Required Needed Involvement Stakeholder to Stakeholder among
Involvement Stakeholders
From Indonesia to other part of the
World ………..
China
(2000)
Vietnam
(2002)
Filipina
Ghana Thailand (1997)
(2005) (2005)
India
(2002) Indonesia
(1995)
Source: AECEN
The Results
Overall Performance ……..
PROPER 2002 PROPER 2003
GR EEN , 8 ,
GOLD , 0 , GREEN, 9, GOLD, 0,
0%
9% 4% 0% BLACK,
B LA C K, 2 5,
29%
42, 17%
B LU E, 2 0 ,
24%
BLUE, 114,
45%
R ED , 3 2 ,
RED, 86,
38% 34%
The Results
Overall Performance …….. At 2005
PROPER 2004/2005
GOLD, 0,
GREEN, 23,
0% BLACK,
5%
72, 15%
BLUE, 221,
48% RED, 150,
32%
The Effectiveness …
Increasing rate of compliance
13.15 % compliance Improvement
Rating 251 companies
Evaluation period 2003-2004 & 2004-2005
138
140
114
120
100 86
80 67
60 42
40 23
18
20 9
0 0 1 4
0
2003-2004 2004-2005
Ditunda Tutup
Media Compliance Performance
Air pollution compliance level is higher than water
pollution, and hazardous waste management
400 336
290 287
300
147 179
200 110
100 29 20
0
Comply Non Comply Other
Water Pollution Air Pollution Hazardous Wastes
Compliance performance Air
Pollution control PROPER 2005
Air Pollution Compliance Level
113 Industries of Mining, Energy, Oil & Gas
NOT COMPLY, 21, Air Pollution Compliance Level
19%
251 Industries of Manufacture,
Infrastructure & Services
Other, 85,
34%
COMPLY, 92, 81%
Com ply, 152,
60%
Not Com ply,
14, 6%
5. The Lesson Learned
Key success factor of the PROPER
depends on …………..
Active Role of
Stakeholders
Strengthening Role of
Independent Advisory Board
Enlarging Targeting for Law
Role of Credibility of Enforcement and
Media Executing other Financial
Agency Disincentive
Effective Synergistic
Communication approach
Strategy with other program
5. The Lesson Learned
Promoting of non regulated emissions as
a criteria for beyond compliance
performance ……..
Fugitive Emissions
Green House Gases
Conservation Energy
5. The Lesson Learned
………….However, supporting
infrastructure such as the availability of
accredidated laboratory facilities is still
limited
5. The Lesson Learned
2,000
2,000
Increasing number of targeted 1,800
companies to achieve critical 1,500
1,600
momentum of the program and
therefore ……the role of local 1,400
government is becoming 1,200 1,000
important 1,000
800 550
600 466
The next …the rating of 525
companies will be publish to the 400 251
200 84
public by early of January 2007
0
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
5. The Lesson Learned
The PROPER will be more effective in
nationwide framework than local type of
environmental compliance public disclosure
Thank You
terima kasih
Text message : +62.812 192 4334
Email : rasiosani@menlh.go.id
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