Indonesian law must be upheld on environmental violators: Activists

Adianto P. Simamora, The Jakarta Post 16 Oct 09;

If the government has the will to upgrade the quality of the country’s ailing environment, the results of the Proper rating system should be used as an entry point for law enforcers to impose sanctions on polluting companies, green activists say.

They said, with or without the Proper rating system, all environmental violators must be punished as a deterrent, so companies will adopt green practices.

“The law must be upheld on environmental violators, with or without the Proper rating system,” executive director of the Indonesian Environmental Forum (Walhi) Berry Furqon told The Jakarta Post on Friday.

The State Ministry for the Environment announced the results of the environmental performance ranking (Proper) on 627 companies in which some 56 firms were awarded a black rating and another 130 companies put in the red category.

The black rating was given to firms that intentionally do nothing to manage air, water and hazardous toxic pollution and have a poor record of corporate social responsibility (CSR) implementation.

State Minister for the Environment Rachmat Witoelar stressed that the voluntary basis of the Proper rating was a tool to encourage companies to improve their performance on environmental management rather than to impose punitive sanctions.

Executive director of the Mining Network (Jatam) Siti Maimunah said the Proper system was the easiest way for mining companies to improve their image as green companies.

“We have long criticized the criteria used in the Proper system. The green label gives mining companies better access to get loans from the banking sector,” she said.

Siti said the government needed to upgrade its criteria by evaluating the companies’ impact on the local people and assessing other environmental damage caused by mining activities.

“It does not make sense that companies which are expanding their mining activities in protected forests get a green label under the Proper system,” she said.

Siti agreed that there were no reasons for the government not to impose sanctions on polluting companies within the Proper system.

Time needed for Indonesia environment law: official
Sunanda Creagh, Reuters 16 Oct 09;

JAKARTA (Reuters) - Indonesia's tough new environment law, passed last month and aimed at any firm with an effect on the environment, may take as long as two years to implement, a senior government official said on Friday.

The law allows the government to revoke polluters' business licenses, which environmentalists said could lead to more effective enforcement.

Indonesia's rapid economic growth has been accompanied by widespread pollution of its waterways, soil and air, and destruction of forests and wildlife by firms in the mining, timber, palm oil and manufacturing sectors.

Law enforcement remains generally weak in many areas, including the environment, and despite efforts to curb graft, Indonesia ranks as one of the world's most corrupt countries.

According to a draft seen by Reuters, the law requires companies whose operations impact the environment to obtain an environmental license and undergo an environmental assessment before starting operations. It sets tough fines for polluters.

However, Dana A. Kartakusuma, an assistant Environment Minister, told a mining conference in Jakarta that it could be two years before industry would know exactly what had to be done to comply with the law.

"I foresee that the regulations under this law will be done in one or two years, and the implementation of this law will be executed stage by stage during the next five years," he said in a speech.

Under the law, companies that breach the terms of the new environmental permit could have their operating licenses for those projects revoked.

Anyone deliberately polluting the environment could face up to 10 years in jail and a fine of up to 10 billion rupiah ($1.07 million).

Those two aspects of the law have been welcomed by environmentalists, but Kartakusuma told Reuters it could be a year before details about the environmental permit are released.

"We will target to have it within one year but sometimes it takes longer," he said. "Theoretically, companies have to comply with the new law, but in order to implement it we need the government regulations. On that we have to wait."

The environmental group Greenpeace has expressed concern that even with the implementing regulations, the law may not be uniformly or strictly enforced.

($1=9350 Rupiah)

(Editing by Ron Popeski)