Transcript Environmental Compliance and Enforcement in Indonesia

Compliance and Enforcement
Priorities and Successes in Indonesia
2008 AECEN Regional Forum
November 25, 2008
Bali, Indonesia
Rosa Vivien Ratnawati
MINISTRY OF ENVIRONMENT
REPUBLIC OF INDONESIA
Indonesia at a Glance
•
•
•
•
Indonesia – archipelagic country with more than 18,000 islands
35 provinces, 448 regencies/cities
2005: total population 219M, only 47M living in urban areas
By 2025: total population 274M, with187M projected to live in
the cities
Environmental Challenges
•
•
•
•
•
Environmental quality decreasing due
to significant increase of pollutants in
water and air
Of 35 rivers monitored by Provincial
Environmental Impact Control
Agencies, all are polluted
Waste and garbage production from
2005 to 2006 increased by 20.9%,
usually disposed to open dumps
(although designed as sanitary landfills)
Decreasing air quality from pollution
from transportation and industry in
Jakarta, Surabaya, Semarang,
Bandung and Medan
2006: 26.5M tons of toxic and
hazardous waste; most establishment
do not have proper disposal facilities
Compliance and Enforcement Challenges
• Weak, limited and overlapping authorities among
sector agencies, and national and local governments
• Weak coordination among concerned agencies and
institutions
• Limited financial and human resources
• Complex systems – licensing, criminal and civil
processes
• Paper-based, un-coordinated data management
systems
• Lack of economic incentives programs – e.g. pollution
charges
• Limited capacity to gather information to measure
progress
Key Compliance and Enforcement Tools
• Guidelines on environmental management for industry
• Technical assistance on waste management for small
scale industries
• EIA requirements for business licenses
• Public Participation in EIA process
• Environmental soft loans
• Import duty exemption on pollution control equipment
• Clean River and Blue Sky programs
• PROPER
• Class action provision
PROPER Program
• Started in 1995
• Recognized worldwide as a model for public
disclosure programs
• Foster company compliance by providing reputation
incentives
• Focus: companies meeting 4 criteria
- Large & significant environmental impact
- Considerable environmental pollution
- Listing in domestic and foreign capital markets
- Export orientation
• Covers 7 elements: water pollution, air pollution, toxic
and hazardous substances, EIA, EMS, natural
resource use and community participation
PROPER Program Outcomes
• Program expanded from 95 to 521 companies from
2003 to 2007
• Reputational incentives can lead to increased
compliance
– Compliance rate of 213 companies increased by 9.4% from
1995 to 1997
– Compliance rate of 251 companies increased by 13.14% from
2004 to 2005
Proper Black Rating
•
•
•
•
•
•
•
There are 43 black rating companies
Re-check to the field
Collecting evidences
Administrative sanction : 16 companies
Civil enforcement : 1 company
Criminal enforcement : 1 company
4 companies closed
Public Enforcement of Civil Law
• Legal ground for government institutions to file
lawsuits for public interest
• Non-governmental organizations have legal standing
• Citizens can file a lawsuit through citizen lawsuit
procedure or class action
• Class action provided under the Environmental
Management Act of 1997
Class Action Provision
• Class action provision allows for rights of a small
group of people to represent the larger public based
on the similarity of problems, legal facts and a
common claim for environmental damages
• Allows for greater citizen involvement in enforcement
• To date, only few cases have reached binding
decision – e.g. Mandalawangi case
Mandalawangi Case
• Landslide in West Java in 2003 caused by illegal
logging led to deaths of 21 people, many more injuries
and loss of livelihoods
• Trial court allowed use of class action by community
against State Forestry Company
• Supreme Court awarded compensation to the victims
and obligated the government to provide adequate
compensation and rehabilitate the degraded
environment
Terima Kasih
(Thank you)