Fidelis E. Satriastanti – 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.